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The NDA government has presented the last Budget before the nation goes 
for 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) |