Piyush Goyals budget gifts full rebates to those earning up to Rs 5 lakh a year.
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Shared News: Updated: Feb 02, 2019, 04.32 PM IST
The interim budget has proposed to give full rebate to those earning up to Rs 5 lakh a year. This will send an estimated 3 crore taxpayers out of the tax net. At present, those earning up to Rs 3.5 lakh a year are eligible for a tax rebate of Rs 2,500 under Section 87A. The budget has proposed to increase rebate Rs 12,500.
Here is a look at how much tax people in various income groups will save due to the Budget proposals.
How much tax will you save?
Income between Rs 2.5 lakh and Rs 5 lakh
| Particulars | Pre-budget | Post-budget |
| Income from salary | 3,60,000 | 3,60,000 |
| Less: Standard deduction | -40,000 | -50,000 |
| Taxable salary | 3,20,000 | 3,10,000 |
| Tax on above | 1,040 |
0
Less: Rebate u/s 87A1,0400Final tax payable (including cess)00Tax Saved1,040
Income between Rs 5 lakh and Rs 6 lakh
| Particulars | Pre-budget | Post-budget |
| Income from salary | 5,50,000 | 5,50,000 |
| Less: Standard deduction | -40,000 | -50,000 |
| Taxable salary | 5,10,000 | 5,00,000 |
| Tax on above (including cess) | 15,080 | 0 |
| Tax Saved | 15,080 | |
Income between Rs 6 lakh and Rs 10 lakh
| Particulars | Pre-budget | Post-budget |
| Income from salary | 8,50,000 | 8,10,000 |
| Less: Standard deduction | 40,000 | 50,000 |
| Taxable salary | 8,10,000 | 8,00,000 |
| Tax on above (including cess) | 77,480 | 75,400 |
| Tax Saved | 2,080 | |
Income above Rs 10 lakh
| Particulars | Pre-budget | Post-budget |
| Income from salary | 10,50,000 | 10,50,000 |
| Less: Standard deduction | 40,000 | 50,000 |
| Taxable salary | 10,10,000 | 10,00,000 |
| Tax on above (including cess) | 1,20,120 | 1,17,000 |
| Tax Saved | 3,120 | |
| For income above Rs 50 lakh | 3,422 | |
| For income above Rs 1 crore | 3,588 | |
All figures in Rs
Calculations by: Cleartax.com
