Finance Minister Arun Jaitley has proposed to reduce existing rate of taxation of those with annual income between 2.5 lakh to 5 lakh from 10% to 5%. Jaitley also announced that the small companies with an annual turnover of 50 crore will have to pay 25% income tax, which is 5% less than the last fiscal. The advance tax on personal Income tax has also been increased by 34.8%. Notably, Jaitley also proposed to allow a carry forward of minimum alternate tax for a period of 15 years.