Budget 2019: Want to go tax free up to Rs 9.75 lakh? Here's how you can save some more
Those hoping for a relaxation in income-tax slabs or rates are probably a disappointed lot, except few.
Those hoping for a relaxation in income-tax slabs or rates are probably a disappointed lot, except few. While Finance Minister Piyush Goyal did not tinker with the tax slabs or relax the tax rates, he has given full tax rebate for taxpayers having taxable income of Rs 5 lakh.
If you add the Rs 4.75 lakh tax exemptions that you can use, this effectively means that up to around Rs 9.75 lakh of taxable income will attract no tax whatsoever.
Read: No tax upto Rs 5 lakh but there's a catch
If you are not a salaried employee, you can escape paying any tax with income of up to Rs 9.25 lakh.
“Individual taxpayers having taxable annual income up to Rs 5 lakh will get full tax rebate and therefore will not be required to pay any income tax...this will provide tax benefit of Rs 18,500 crore to an estimated 3 crore middle-class taxpayers comprising self-employed, small business, small traders, salary earners, pensioners and senior citizens,” FM Piyush Goyal said in the Budget speech.
While the Interim Budget 2019 has not increased the basic exemption limit from Rs 2.50 lakh, it has increased tax rebate under Section 87A from Rs 2,500 to Rs 12,500 and would cover taxpayers having taxable income up to Rs 500,000.
Read: Who gets what from Piyush Goyal's budget?
“The rebate on the total income is after considering the eligible deductions under section 80C, 80D, 80CCD, etc, interest on housing loan deduction and other income. This would mean that individual taxpayers even having income up to Rs 9.25 lakh (Rs 9.75 lakh for salaried employees) can escape the tax net,” says Suresh Surana, founder of RSM Astute.
Below we have explained the same in details.