Tax payable by you on the net taxable income will depend on the income tax slab applicable to your income.
Interim Finance Minister Piyush Goyal in his budget speech today has proposed full rebate for individual income taxpayers with annual taxable income up to Rs 5 lakh. In addition to that, he has also proposed to hike the standard deduction limit for salaried people and pensioners to Rs 50,000 from Rs 40,000 currently.
Once these proposals are passed by the Parliament, they will be effective from April 1, 2019 for the financial year 2019-20. However, no change has been proposed in the income tax slabs and rates.
ET Wealth has made an income tax calculator to let you know how much you tax you will save in the FY 2019-20 as compared to FY 2018-19.
As per the analysis, individual taxpayers having net taxable income up to Rs 5 lakh will get full rebate under section 87A. As per the Finance Bill, the rebate amount has been proposed to be increased to Rs 12,500 from currently, Rs 2,500. This effectively means that taxpayers with taxable income up to Rs 5 lakh will pay no tax from FY2019-20 onwards.
However, for individuals having net taxable income exceeding Rs 5 lakh will pay income tax as per the existing tax rates.
Here are the latest income tax slabs for the FY2019-20
Income tax slabs for resident Individual below 60 years of age
| Taxable income slabs | Income tax rates and cess |
| Up to Rs 2.5 lakh | Nil |
| Rs 2,50,001 to Rs 5,00,000 | 5% of (Total income minus Rs 2,50,000) + 4% cess |
| Rs 5,00,001 to Rs 10,00,000 | Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cess |
| Rs 10,00,001 and above | Rs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess |
Income tax slabs for resident individual between 60 and 80 years of age (Senior Citizen)
| Taxable income slabs | Income tax rates and cess |
| Up to Rs 3 lakh | Nil |
| Rs 3,00,001 to Rs 5,00,000 | 5% of (Total income minus Rs 3,00,000) + 4% cess |
| Rs 5,00,001 to Rs 10,00,000 | Rs 10,000 + 20% of (Total income minus Rs 5,00,000) + 4% cess |
| Rs 10,00,001 and above | Rs 1,10,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess |
Income tax slabs for resident individual above 80 years of age (Super Senior Citizen)
| Taxable income slabs | Income tax rates and cess |
| Up to Rs 5 lakh | Nil |
| Rs 5,00,001 to Rs 10,00,000 | 20% of (Total income minus Rs 5,00,000) + 4% cess |
| Rs 10,00,001 and above | Rs 1,00,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess |
Non-resident Indians (NRI) are not allowed to avail the rebate of section 87A. A surcharge of 10 per cent is levied on individual taxpayers having income between Rs 50 lakh and Rs 1 crore. For High-net individual (HNIs) having income exceeding Rs 1 crore, a surcharge of 15 per cent is levied.
A cess of 4 per cent is levied on the income tax payable.
Source:- economictimes
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