Budget 2019: Here’s how much tax low, middle and high income groups save : 02-02-2019

The interim budget has proposed to give full rebate to those earning up to Rs 5 lakh a year. This will send an estimated 3 crore taxpayers out of the tax net. At present, people earning up to Rs 3.5 lakh a year are eligible for a tax rebate of Rs 2,500 under Section 87A. The budget has proposed to increase rebate Rs 12,500.

Here is a look at how much tax people in various income groups will save due to the Budget proposals.

How much tax will you save? 
Income between Rs 2.5 lakh and Rs 5 lakh

Particulars Pre-budget Post-budget
Income from salary 3,60,000 3,60,000
Less: Standard deduction -40,000 50,000
Taxable salary 3,20,000 3,10,000
Tax on above 1,040 0
 

Less: Rebate u/s 87A

1,040 0
Final tax payable (including cess) 0 0
Tax Saved 1,040  

 

Income between Rs 5 lakh and Rs 6 lakh

Particulars Pre-budget Post-budget
Income from salary 5,50,000 5,50,000
Less: Standard deduction -40,000 -50,000
Taxable salary 5,10,000 5,00,000
Tax on above (including cess) 15,080 0
Tax Saved 15,080  

 

Income between Rs 6 lakh and Rs 10 lakh

Particulars Pre-budget Post-budget
Income from salary 8,50,000 8,10,000
Less: Standard deduction 40,000 50,000
Taxable salary 8,10,000 8,00,000
Tax on above (including cess) 77,480 75,400
Tax Saved 2,080  

 

Income above Rs 10 lakh

Particulars Pre-budget Post-budget
Income from salary 10,50,000 10,50,000
Less: Standard deduction 40,000 50,000
Taxable salary 10,10,000 10,00,000
Tax on above (including cess) 1,20,120 1,17,000
Tax Saved 3,120  
For income above Rs 50 lakh 3,422  
For income above Rs 1 crore 3,588  

 

Source : PTI