Union Budget 2019: No Income Tax on Salary upto 7 Lakhs

Finance minister has announced Union Budget 2019, wherein a lot of income tax sops has been offered to common man. Let’s have a look!

After losing the state assembly elections, it seems now the BJP government has braced itself and is all set to hover in the minds of common man with its populist budget measures.

Income Tax Relief in Budget 2019

The main agenda of Budget 2019 proposal is to woo salaried and pensioners by reducing their tax burden with a proposed increase in standard deduction that stood at Rs 40,000 earlier and now it is revised to Rs 50,000.

The Budget has also proposed to remove tax for individuals whose taxable income fall below or upto Rs 5 lakh. The tax on deemed rent from the second vacant house that needs to be payable by the home owners has also been abolished to improve the real estate investment.

As told above the Budget 2019 has increased standard deduction of salaried and pensioners from Rs 40,000 to Rs 50,000. The increase in standard deduction will save you Rs 2080 and for those whose income fall between 5 lakh to 10 lakh, a saving of Rs 3120 has been derived.

If we try to look at the previous assessment year 2018 and derive the calculations, we will get to know the clear picture of the same.

Particulars	FY 2018-19	FY 2019-20
Salary	700000	700000
Standard Deduction	40000	50000
Gross Taxable Income	660000	650000
Less: 80C Investments	150000	150000
Taxable Income	510000	500000
Tax upto 5 lakhs	12500	0
Tax above 5 lakhs @20%	2000	0
Total Tax	14500	0
Cess	435	0
Final Tax	14065	0

From, the above calculation it is clear that in contrast to the previous year, the assessee is not required to pay any income tax if his income falls in the category of Rs 5 lakh. Apart from this, salaried personnel can claim HRA as well.

It is a populist budget that will definitely fare well in the eyes of a common man, but the budget is not able to offer relief for upper middle- class families. So, what do you think is Narendra Modi trying to condemn his popular image of suit boot ki sarkar or is it an aftermath of recent setback suffered?