Budget 2019 Tax Impact! Know how much tax you will have to pay for Assessment Year 2020-21 (FY19-20)

Mumbai: Based on Budget announcement on allowance of full rebate upto Rs. 5,00,000, Tax calculation has changed for certain income groups as below:

 

Net Total Income (After all permissible Deductions)

(Amt in Rupees)3,50,0004,00,0005,00,0007,50,000
Net Tax5,000 (@ 5% on 1,00,000)7,500 (@ 5% on 1,50,000)12,500 (@ 5% on 2,50,000)62,500 (@5% on 2,50,000, 20% on 2,50,000)
Rebate under Section 87A of I-T Act5,0007,50012,500NA
Tax liability00062,500
Cess @ 4%0002,500
Tax payable (after cess)00065,000
Tax payable

(2018)

2,6007,80013,00065000
Savings in Tax2,6007,80013,000Nil

Due to the above announcement it is evident that the purpose of this announcement is to save tax outgo for the middle class and salaried persons. The Finance Minister had a clear agenda to give the salaried and middle class which is evident in his budget speech.

Also Read: Difference between Exemption and Rebate here.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in