Income Tax Calculation After 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.