Budget 2019: No change in Income Tax slabs

July 5: While no changes were made to the income tax slabs, there were some benefits announced that will ease burden on the middle class population of the country. Full tax rebate will be provided on income up to Rs 5 lakh in financial year 2019-20. Finance Minister Nirmala Sitharaman during her budget speech did not propose any change in Income Tax slabs for individual taxpayers.

Income tax will be effective on income up to Rs 6.5 lakh (Rs 5 lakh + Rs 1.5 lakh under section 80C) through an increase in rebate. TDS (tax deducted at source) limit was hiked from Rs 10,000 to Rs 40,000 on post-office savings. Rs 1.5 lakh income tax deduction was announced on interest paid on loans for purchase of electric vehicles.

However, surcharge has been increased on individuals having taxable income over Rs. 2 crore. In the Interim Budget, the government had increased the standard deduction to Rs.50,000 and also provided 100 percent tax rebate to individuals having taxable income upto Rs.5 lakh.

With an aim to simplilfy tax administration and bring greater transparency, FM has proposed inter changeability of PAN and Aadhaar. “Those who don’t have PAN, can file ITR by simply quoting Aadhaar number,” Sitharaman noted.