New Delhi, July 5: Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2019 on Friday, said there will be no change in the tax slabs. Sitharaman said the surcharge for taxable income from 2 crore to 5 crore has been increased to 3% while that of people with income 5 crore and above has been hiked to 7%. The Finance Minister further said that all companies having annual turnover of 400 crores, will now be under the bracket of 25%. This will cover 99.3% of all the companies, the Finance Minister said. The deduction of interest paid on house loan increased from 2 Lakh to 3.5 Lakh. Also, the Section 80EE limit has been raised to 1.5 lakhs. New Tax Slabs After Budget 2019: If Your Income Is Rs 5 Lakh, 7.5 Lakh or 10 Lakh, Here's The Amount You'll Have to Pay.
In February, the government hadn't changed the income tax slabs. Those earning more than Rs 5 lakh will have to pay the tax at the same rate as before. There will be no tax on first Rs 2.5 lakh, 5 per cent on income between Rs 2.5 and 5 lakh, 20 per cent on income between Rs 5 lakh and Rs 10 lakh and 30 per cent on earnings of over Rs 10 lakh. Meanwhile, senior citizens aged 60 years or above but less than 80 years with an income of up to Rs 3 lakh are exempted from paying tax.
Here's the Current Income Tax Slab Table
|Income Slabs (Individual below 60 years of age)||Tax Rates||Income Slabs (resident & above 60 years but below 80 years)||Tax Rates||Income Slabs (resident & above 80 years)||Tax Rates|
|Total income up to Rs. 2.5 Lac||NIL||Total income up to Rs. 3.00 Lac||NIL||NA||NA|
|Total income exceeds Rs. 2.5 Lac but less than Rs.5 Lac||5% on amount exceeding Rs. 2.5 Lac||Total income exceeds Rs. 3 Lac but less than Rs.5 Lac||10% on amount exceeding Rs. 3.00 Lac||Total income up to Rs. 5 Lac||NIL|
|Total income exceeds Rs. 5 Lac but less than Rs.10 Lac||20% on Income exceeding Rs. 5 Lac + Rs. 25,000||Total income exceeds Rs. 5 Lac but less than Rs.10 Lac||20% on Income exceeding Rs. 5 Lac + Rs. 20,000||Total income exceeds Rs. 5 Lac but less than Rs.10 Lac||20% on Income exceeding Rs. 5 Lac|
|Total income more than Rs. 10 Lac||30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000||Total income more than Rs. 10 Lac||30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000||Total income more than Rs. 10 Lac||30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac|
However, income between Rs 300,001 to Rs 5 lakh will be taxed 5 per cent, while income from Rs 500,001 to Rs 10 lakh will be taxed at 20 per cent and those above Rs 10 lakh will be taxed at 30 per cent respectively. CBDT Chairman Sushil Chandra had explained the proposal made in the Union Budget for 2019-20 and said the income tax department will give a "straight rebate" of Rs 12,500 to people having an annual income of Rs 5 lakh from the beginning of next fiscal, thus making their tax liability zero.
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For people earning more than Rs 5 lakh annually, the "old" tax rates will continue. However, people having taxable income of Rs 6.5 lakh per annum too can avail "tax rebate" provided they invest Rs 1.5 lakh in specified investments such as PPF, General Provident Fund (GPF) and insurances, he said.