Here is how your income may get affected by Budget 2019

The NDA government has presented the last Budget before the nation goes budgetfor general elections in 2019 to constitute the 17th Lok Sabha. 

Here is how your income may get affected by Budget 2019

The Budget 2019 has brought in several changes and the massive one has been the announcement on Income Tax affecting the middle-class and lower-middle-class section of the society. The Narendra Modi led government has given a great benefit to the people having income up to Rs.5 lakhs per annum. 

A brief comparative analysis has been given below for a clear understanding of how your income may get affected by Budget 2019. 

Consider the following scenarios

Scenario 1: 

FY 2017-18

FY 2019-20

Gross Total Income (GTI)

700,000

Gross Total Income (GTI)

700,000

Deductions u/s 80C

150,000

Deductions u/s 80C

150,000

Total Taxable Income

550,000

Total Taxable Income

550,000

Calculation of Tax:

Calculation of Tax:

Upto 250,000

NIL

Upto 250,000

NIL

250,001 – 500,000

12500 (@5% on 250,000)

250,001 – 500,000

12500 (@5% on 250,000)

500,001 – 10,00,000

10000 (@20% on 50,000)

500,001 – 10,00,000

10000 (@20% on 50,000)

Tax Payable

22,500

Tax Payable

22,500

 

Scenario 2:

FY 2017-18

FY 2019-20

Gross Total Income (GTI)

500,000

Gross Total Income (GTI)

500,000

Deductions u/s 80C

150,000

Deductions u/s 80C

150,000

Total Taxable Income

350,000

Total Taxable Income

350,000

Calculation of Tax:

Calculation of Tax:

Upto 250,000

NIL

Upto 250,000

NIL

250,001 – 500,000

5000 (@5% on 100,000)

250,001 – 500,000

5000 (@5% on 100,000)

Tax Rebate

2500 (on Total Taxable Income upto 3.5 lacs)

Tax Rebate

12500 (on Total Taxable Income upto 5 lacs)

Tax Payable

2500 (5000 – 2500)

Tax Payable

NIL (5000 – 5000)

 

Scenario 3: 

FY 2018-19

FY 2019-20

Gross Total Income (GTI)

500,000

Gross Total Income (GTI)

500,000

Standard Deduction

40,000

Standard Deduction

50,000

Deductions u/s 80C

150,000

Deductions u/s 80C

150,000

Total Taxable Income

310,000

Total Taxable Income

300,000

Calculation of Tax:

Calculation of Tax:

Upto 250,000

NIL

Upto 250,000

NIL

250,001 – 500,000

3000 (@5% on 60,000)

250,001 – 500,000

2500 (@5% on 50,000)

Tax Rebate

2500 (on Total Taxable Income upto 3.5 lacs)

Tax Rebate

12500 (on Total Taxable Income upto 5 lacs)

Tax Payable

500 (3000 – 2500)

Tax Payable

NIL (5000 – 5000)

 

Scenario 4:

FY 2018-19

FY 2019-20

Gross Total Income (GTI)

600,000

Gross Total Income (GTI)

600,000

Standard Deduction

40,000

Standard Deduction

50,000

Deductions u/s 80C

150,000

Deductions u/s 80C

150,000

Total Taxable Income

410,000

Total Taxable Income

400,000

Calculation of Tax:

Calculation of Tax:

Upto 250,000

NIL

Upto 250,000

NIL

250,001 – 500,000

8000 (@5% on 160,000)

250,001 – 500,000

7500 (@5% on 150,000)

Tax Rebate

NIL (2500 on Total Taxable Income upto 3.5 lacs)

Tax Rebate

12500 (on Total Taxable Income upto 5 lacs)

Tax Payable

8000

Tax Payable

NIL (7500 – 7500)

 

 

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