Budget 2019: Here’s how much tax low, middle and high income groups save

Finance

Piyush Goyals budget gifts full rebates to those earning up to Rs 5 lakh a year.

 

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 salary3,60,0003,60,000
Less: Standard deduction-40,000-50,000
Taxable salary3,20,0003,10,000
Tax on above1,040

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 salary5,50,0005,50,000
Less: Standard deduction-40,000-50,000
Taxable salary5,10,0005,00,000
Tax on above (including cess)15,0800
Tax Saved15,080

Income between Rs 6 lakh and Rs 10 lakh

Particulars Pre-budget Post-budget
Income from salary8,50,0008,10,000
Less: Standard deduction40,00050,000
Taxable salary8,10,0008,00,000
Tax on above (including cess)77,48075,400
Tax Saved2,080

Income above Rs 10 lakh

Particulars Pre-budget Post-budget
Income from salary10,50,00010,50,000
Less: Standard deduction40,00050,000
Taxable salary10,10,00010,00,000
Tax on above (including cess)1,20,1201,17,000
Tax Saved3,120
For income above Rs 50 lakh3,422
For income above Rs 1 crore3,588

All figures in Rs
Calculations by: Cleartax.com