Finance Minister Nirmala Sitharaman in the Union Budget 2019-20, proposed an additional Rs 1.5 lakh deduction on interest paid for affordable housing loans till March 2020 to provide further impetus to affordable housing. With this, buyers of houses up to Rs 45 lakh to get interest deduction of Rs 3.5 lakh. Sitharaman also proposed an additional income tax deduction of Rs 1.5 lakh on interest paid on loans for the purchase of electric vehicles (EVs).
The finance minister raised surcharge on individuals having taxable income over Rs 2 crore till Rs 5 crore. This will have effective income tax increase of 3 percent for those earning Rs 2-5 crore.
While announcing the Interim Budget on 1 February the then finance minister Piyush Goyal had said that individual taxpayers having a taxable annual income up to Rs 5 lakh would get full tax rebate and therefore would not be required to pay any income tax. Also, investment of Rs 1.50 lakh in provident funds, specified savings, life insurance etc, would be eligible for an income tax deduction. Thus income up to Rs 6.5 lakh will become tax-free.
The former finance minister also hiked standard deduction for salaried employees from Rs 40,000 to Rs 50,000. The TDS threshold also hiked from Rs 10,000 to Rs 40,000 on bank and post office deposits. This will benefit senior citizens and middle-class taxpayers a lot
If you are still confused as to how much tax you need to pay for current fiscal year, here is a simple and free tax calculator. Those who wish to use this free calculator can follow the step-by-step procedure listed below.
Steps to calculate annual tax payable for the financial year 2019-2020:
Step 1: Under the first tab ie, the ‘Basic Info’ fill in the required details in the provided fields.
Step 2: After filling in the details, click on the ‘Next’ button.
Step 3: Now, under the ‘Income’ tab proceed to fill in the details of your income from various sources and click on ‘Next’
Step 4: Under the ‘Deductions’ tab, provide details of savings, investments, and expenditures liable for tax waiver under Form 80C
Step 5: Once you reach the last tab, ‘Summary’ the amount payable on your total income will appear on the screen.
Updated Date: Jul 05, 2019 14:04:47 IST