Income Tax Calculation After Interim Budget 2019

Change in your tax liability can be explained further with the following examples, following the Interim Budget 2019.

1. Individual residents with income less than Rs 5 lakh per annum:

Particulars	FY 2018-19 (in rupees)	FY 2019-20 (in rupees)
Basic Salary + DA	377,200	377,200
Other Taxable Allowances	172,800	172,800
Gross Salary	550,000	550,000
Standard Deduction (deducted)	40,000	50,000
Total Income under the head 'salary'	510,000	500,000
Income Tax	14,500	12,500
Rebate under section 87A (deducted)	0	12,500
Total tax payable after Rebate	14,500	0
Surcharge @10% / 15%	0	0
Total tax payable after surcharge	14,500	0
Education Cess @ 4%	580	0
Total tax, surcharge and education cess	15,080	0

Total tax saved after budget: Rs 15,080

2. Individual residents with income over Rs 5 lakh but less than Rs 10 lakh per annum

Particulars	FY 2018-19 (in rupees)	FY 2019-20 (in rupees)
Basic Salary + DA	7,77,200	7,77,200
Other Taxable Allowances	2,22,800	2,22,800
Gross Salary	10,00,000	10,00,000
Standard Deduction (deducted)	40,000	50,000
Total Income under the head 'salary'	9,60,000	9,50,000
Income Tax	1,04,500	1,02,500
Rebate under section 87A (deducted)	0	0
Total tax payable after Rebate	1,04,500	1,02,500
Surcharge @10% / 15%	0	0
Total tax payable after surcharge	1,04,500	1,02,500
Education Cess @ 4%	4,180	4,100
Total tax, surcharge and education cess	1,08,680	1,06,600

Total tax saved after budget: Rs 2,080

3. Individual residents with income over Rs 10 lakh but less than Rs 50 lakh per annum

Particulars	FY 2018-19 (in rupees)	FY 2019-20 (in rupees)
Basic Salary + DA	17,77,200	17,77,200
Other Taxable Allowances	12,22,800	12,22,800
Gross Salary	30,00,000	30,00,000
Standard Deduction (deducted)	40,000	50,000
Total Income under the head 'salary'	29,60,000	29,50,000
Income Tax	7,00,500	6,97,500
Rebate under section 87A (deducted)	0	0
Total tax payable after Rebate	7,00,500	6,97,500
Surcharge @10% / 15%	0	0
Total tax payable after surcharge	7,00,500	6,97,500
Education Cess @ 4%	28020	27900
Total tax, surcharge and education cess	7,28,520	7,25,400

Total tax saved after budget: Rs 3,120

The main take away for salaried individuals from the Budget 2019 was the reduced income tax burden. Here is a clear clarification on how the tax on your income for the financial year 2019-20 will be computed.

• Standard deduction has been increased from Rs 40,000 to Rs 50,000
• No income tax will be payable by those who earn an annual income less than Rs 5 lakhs. A tax rebate was announced, which means if your income is Rs 6.5 lakh, you will not have to pay tax as you can additional Rs 1.5 lakhs tax benefit for investments exempt from tax under sec 80C.

These changes will mean that after a rebate, only those in the upper tax brackets would gain benefit to the extent of the standard deduction.