Budget 2019 – No Need to Pay Tax if Your Income is upto Rs. 5 Lakh
In Budget 2019, The Government has not changed the Slab Rate but provided relief to the middle class by providing tax relief upto Rs 5 Lakhs for the Financial Year 2019-20.
Individual taxpayers having taxable annual income up to Rs. 5 lakhs will get full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to Rs. 6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc.
In fact, with additional deductions such as interest on home loan up to Rs. 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens etc, persons having even higher income will not have to pay any tax.
This will provide tax benefit of Rs. 8,500 crore to an estimated 3 crore middle class taxpayers comprising self employed, small business, small traders, salary earners, pensioners and senior citizens.
Who is Eligible for This Benefit?
The government has released this benefit via Rebate of Section 87A which means there is no change in slab rate and return filing limits. Further, the taxpayer having income more than Rs. 5 Lakh (Rs. 6.5 Lakh if you take benefit of Section80C) will not get the benefit of this relief.
Income Tax Slab Rate