New Income Tax Slabs For 2019-2020: Will Increase in Tax Exemption Limit Have a Cascading Effect? Check Here
Even as many were expecting a hike in Income Tax exemption limit from Rs 2.5 lakh to Rs 5 lakh per annum, the Finance Minister announced no change in Income Tax Slabs in Budget 2019.
New Delhi, February 1: In a major rejig, Interim Finance Minister Piyush Goyal, while presenting the Interim Budget 2019, announced an increase in the tax exemption limit from Rs 2,50,000 as present to Rs 5,00,000. The upward push in the exemption limit would, however, have no cascading impact on the further slabs. The incumbent tax rates for those earning an annual salary above Rs 5 lakh would continue to apply. Budget 2019-2020 Highlights: Minimum Income Support For Farmers Under PM Kisan Samman Nidhi And More in Piyush Goyal's Interim Budget.
Not just that, he also announced a hike in standard deduction from Rs 40,000 per annum to Rs 50,000 per annum. He increased the tax exemption limit on house rent to Rs 2.4 lakh per annum. Catch live updates on Interim Budget 2019.
Here's what the tax slabs look like now
- For those below 60 years of age
| Income | Tax Rate |
| Up to Rs 5 lakh | Nil |
| Rs 5,00,001 to Rs 10,00,000 | Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cess |
| Rs 10,00,001 and above | Rs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess |
- For those aged between 60-80
| Income | Tax Rate |
| Up to Rs 2.5 lakh | Nil |
| Up to Rs 5 lakh | Nil |
| Rs 5,00,001 to Rs 10,00,000 | Rs 10,000 + 20% of (Total income minus Rs 5,00,000) + 4% cess |
| Rs 10,00,001 and above | Rs 1,10,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess |
- For super senior citizens aged above 80
| Income | Tax Rate |
| Up to Rs 5 lakh | Nil |
| Rs 5,00,001 to Rs 10,00,000 | 20% of (Total income minus Rs 5,00,000) + 4% cess |
| Rs 10,00,001 and above | Rs 1,00,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess |
Earlier, the Shiv Sena had demanded that the Income Tax exemption limit be raised to Rs 8 lakh per annum to make it go in line with the eligibility criteria in the 10 per cent reservation for Economically Weaker Sections of the General Category.
**The new tax slabs have not been released by the Finance Ministry. As per the statement issued, only the tax exemption net has been raised.
(The above story first appeared on LatestLY on Feb 01, 2019 08:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).