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No increase in the Income tax slab in Budget 2019 – Clarification on rebate of Income tax upto Rs. 5 Lakh Annual Income

clarification regarding exemption limit

There has been a misconception about the Increase in the Income-tax slab while listening to the Union Finance Minister while presenting the Internal Budget 2019. In the Budget, the Honourable Finance Minister Sh. Piyush Goyal used the term “No Income tax up to Rs. 5 Lakhs” Annual Income. But when the Finance bill 2019 comes to the record, the ambiguity has been cleared regarding the Exemption limit.

As per the Finance Bill 2019, the Rebate u/s. 87A has been increased from Rs. Two Thousand Five Hundred to Rs. Twelve Thousand Five Hundred. The Income-tax slab rates have not been changed and remained intact as existed in the previous year.

To conclude, for the Individuals having annual income up to Rs. 5 Lakhs after availing all the deductions, they do not have to pay Income tax as they will get the rebate u/s. 87A.

 

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