Finance Minister Piyush Goyal has made a major changes in the personal tax category to ease the pain of middle class, salaried taxpayers. Goyal said individual taxpayers having taxable annual income up to Rs 5 lakhs will get full tax rebate and therefore will not be required to pay any income tax . Also, investment of Rs 1.50 lakh in provident funds, specified savings, insurance etc, will be eligible for income tax deduction. Thus income up to Rs 6.5 lakh will become tax-free. The finance minister also hiked standard deduction for salaried employees from Rs 40,000 to Rs 50,000. TDS threshold also hike from Rs 10,000 to Rs 40,000 on bank and post office deposits. This will benefits senior citizens and middle class tax payers a lot. If you are still confused as to how much tax you need to pay next year, here is a simple tax calculator designed by us. Check it out:
Please note that figures displayed above are approximate.