Budget 2019: Income tax rebate hiked for income up to Rs 5 lakh; here is how much you will save now

Finance Minister Piyush Goyal on Friday doled out tax sops to middle class including doubling of income tax exemption limit to Rs 5 lakh and raising standard deduction to Rs 50,000, and provided concessions on interest income from bank deposits and rent.

FP Staff February 01, 2019 16:54:51 IST
Budget 2019: Income tax rebate hiked for income up to Rs 5 lakh; here is how much you will save now
  • Individuals with income up to Rs 5 lakh will not be required to pay any tax, Piyush Goyal said while presenting Interim Budget

  • He said individuals who are earning gross income of Rs 6.5 lakh per year and have made investments in savings instruments, will be exempt from paying income tax

  • Standard deduction has been raised from Rs 40,000 to Rs 50,000 which will benefit three crore salaried individuals

Finance minister Piyush Goyal on Friday doled out tax sops to middle class including giving full income tax rebate for income up to Rs 5 lakh and raising standard deduction to Rs 50,000 and provided concessions on interest income from bank deposits and rent.

Budget 2019 Income tax rebate hiked for income up to Rs 5 lakh here is how much you will save now

Representational image. Reuters

"Individual taxpayers having taxable annual income up to Rs 5 lakh will get a full tax rebate and therefore will not be required to pay any income tax," Goyal said while presenting Interim Budget for 2019-20 in Lok Sabha.

He said individuals who are earning gross income of Rs 6.5 lakh per year and have made investments in savings instruments, will be exempt from paying income tax. Also, standard deduction has been raised from Rs 40,000 to Rs 50,000 which will benefit three crore salaried individuals.

"This will provide the benefit of Rs 18,500 crore to 3 crore middle-class taxpayers self-employed, senior citizens," he said, adding the number of beneficiaries will go up for those who have made investments in mediclaim and pension.

The following table shows how much salaried class will save post implementation of the budget announcements.

Budget 2019 Income tax rebate hiked for income up to Rs 5 lakh here is how much you will save now

The above table shows, that if your salary income is Rs 5 lakh then you will save Rs 10,920 tax in the next financial year as you will have to pay zero tax. However, if your salary income is Rs 7.50 lakh then you will save only Rs 2,080 and if your salary income is Rs 20 lakh you will save mere Rs 3,120.

Follow full coverage of Union Budget 2019-20 here

Income tax calculator

 

 

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