Tax Slab Rates Changes in Budget 2019: Acting finance minister Piyush Goyal announced Interim Budget on Friday 01-Feb. He proposed that Individuals tax payer will have to pay no tax till gross income of Rs 6.5 lakh if they make an investment And Standard deduction would be raised from Rs 40,000 to Rs 50,000.( As per the current slabs, individuals who below 60 years, income up to Rs 2.5 lakh is exempt from tax.)
This is a rebate and not a slab change, it will not impact the tax incidence of those with larger incomes though it will have some impact for those whose salaries are under Rs 10 lakh as they can add home loans and tuition fees to get additional benefits.
He said that individuals who’s earning up to Rs 5 lakh would get a full tax rebate. Income from Rs 500,001 to Rs 10 lakh is taxed at 20 per cent and above Rs 10 lakh was taxed at 30 per cent.
Piyush Goyal also said standard deduction would be raised from Rs 40,000 to Rs 50,000. Finance Minister Arun Jaitley had announced a standard deduction of Rs. 40,000 for the salaried class in Budget 2018. This additional deduction was proposed in place of existing deductions of Rs 15,000 for medical reimbursement and Rs 19,200 for transport allowance.