Budget 2019: There are no changes in the rates of the slab of the income tax

NEW DELHI: Finance Minister Nirmala Sitharaman, on Friday, July 5, 2019, presented the first Modi 2.0 government budget. During his speech on the budget, the finance minister made no announcement to change the slabs of income tax.

However, she proposed an additional deduction of Rs 1.5 lakh for interest paid on loans provided until March 31, 2020. This measure, said Sitharaman, will result in a benefit of Rs 7 lakh for home buyers of class average during his 15-year loan period.

Those who buy homes valued at Rs 45 lakh under the affordable housing scheme, said Sitharaman, can benefit from a higher interest deduction up to Rs 3.5 lakh.

In order to achieve the goal of 'Housing for all' and affordable housing, a tax on the profits obtained by developers of affordable housing has already been granted. In addition, interest paid on housing loans is allowed as a deduction to the extent of Rs. 2 lakh with respect to self-occupied property, he added.

It was also proposed to increase the surcharge for those in the highest income category. FM said: Those with higher incomes should contribute more to national development. Propose to increase the surcharge on the individual income of Rs 2-5 crore and on Rs 5 crore by 3% and 7% respectively.

The government also proposed to provide a deduction of income tax of 1.5 lakhs on interest paid on loans taken for the purchase of electric vehicles.

In the interim budget of February presented by the then acting finance minister, Piyush Goyal, the government introduced a full tax refund for those who fall under the category of net taxable income of Rs 5 lakh. When granting the benefit to the salaried class, the government also increased the standard deduction to Rs 50,000 from Rs 40,000.

Tax rates for income tax AY (2019-2020)



For resident individuals (less than 60 years old)

Tax slab Income tax
Up to Rs 2.5 lakh Null
Rs 2.5 lakh a

Rs 5 lakh
5% of total income

exceeding Rs 2.5 lakh
Rs 5 lakh to

Rs 10 lakh
Rs 12,500 + 20% of the total

income exceeding Rs 5 lakh
Rs 10 lakh

and above
Rs 1.12,500 + 30% of the total

income exceeding Rs 10 lakh
Note: 4% of cess applicable on all slabs.

For residents (60-80 years).

Tax slab Income tax
Up to Rs 3 lakh Null
Rs 3 lakh a

Rs 5 lakh
5% of total income

exceeding Rs 3 lakh
Rs 5 lakh to

Rs 10 lakh
Rs 10,000 + 20% of the total

income exceeding Rs 5 lakh
Rs 10 lakh

and above
Rs 1,10,000 + 30% of the total

income exceeding Rs 10 lakh
Note: 4% of cess applicable on all slabs.

For private residents over 80 years old.

Tax slab Income tax
Up to Rs 5 lakh Null
Rs 5 lakh to

Rs 10 lakh
20% of total income

exceeding Rs 5 lakh
Rs 10 lakh

and above
Rs 1.00,000 + 30%

of total income higher than

Rs 10 lakh
Note: 4% of cess applicable on all slabs.

(With contributions from agencies)

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