If you earn more than Rs.5 Lakh a year, Budget 2019 has no Tax Relief for you except Standard deduction benefit of Rs.10,000.

            Budget 2019 disappointed many tax payers who were expecting income tax exemption to be increased. Only a rebate on net taxable income upto Rs.5,00,000 p.a was proposed though the changes will not be applicable in current assessment year.

Do remember that in the Latest Income Tax Slab Rates FY 2019-20 (AY 2020-21) there are no changes. If your total income is more than Rs.5,00,000 then you are not eligible to claim the deduction under Sec.87 A. Hence, there will not be any benefit for those who are under higher bracket.

Health and Education Cess : 4% on income tax. This Health and Education Cess replaced the earlier 2% Education Cess and 1% Secondary and Higher Education cess.

Let us now take few examples and calculate the income tax amount.

How to calculate Income Tax on your net or total income?

# If you are under 30% Tax Slab and below 60 years of age

Let us say your next taxable income (after all deductions like Sec.80C and all) Rs.15,00,000.

Up to Rs.2,50,000-NIL

Rs.2,50,001 to Rs.5,00,000-Rs.12,500  @5%.

Rs.5,00,001 to Rs.10,00,000-Rs.1,00,000 @20%

Rs.10,00,001 and above (in this case Rs.15,00,000)=Rs.1,50,000 @30%.

So total tax will be Rs.12,500+Rs.1,00,000+Rs.1,50,000=Rs.2,62,500 + Cess

# If you are under 20% Tax Slab and below 60 years of age

Let us say your next taxable income (after all deductions like Sec.80C and all) Rs.7,00,000.

Up to Rs.2,50,000-NIL

Rs.2,50,001 to Rs.5,00,000-Rs.12,500 @5%.

Rs.5,00,001 to Rs.7,00,000=Rs.40,000 @20%

Therefore, the total tax will be Rs.12,500+Rs.40,000=Rs.52,500 + Cess

FM decared rebate. This is not an exemption limit that has been raised, and therefore, does not apply to every body. Those earning more than Rs.5 lakhs a year will continue to pay taxes as they were earlier paying. Standard deduction was increased from Rs.40,000/- to Rs.50,000/-