<h1>Finance Minister Cuts Tax Rates to 5% for Middle-Income Earners; Introduces Revenue Measures to Offset Rs. 15,500 Crore Loss.</h1> The Finance Minister announced a reduction in tax rates from 10% to 5% for individuals earning between Rs. 2.5 to 5 lakhs, resulting in a tax foregone of Rs. 15,500 crores. To offset this, several revenue mobilization measures were introduced, including extending the 10% tax on dividend income over Rs. 10 lakh to more entities, taxing certain property transfers, and restricting exemptions on long-term capital gains for listed shares acquired after October 2004. Other measures include a 5% tax deduction at source for rent payments over Rs. 50,000, aligning transfer pricing with international guidelines, and addressing thin capitalization issues.