News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Budget Extravaganza »
 Company Audit Report, FEMA and Direct Tax including Budget
 Hopes of tax exemption limit hike Budget 2019
 Budget could set stage for a new-look Income-Tax Act
 India’s budget math faces a credibility challenge
 From income tax slab changes to 80C limit extension, 5 key things to expect from the upcoming Union Budget
 Know latest income tax slabs and rates before Union Budget 2019 Filing tax return
 How to reduce your income tax outgo with Budget 2019 provisions
 How your taxes and investments could be affected by the budget
 Here is what you got to pay Interim Budget 2019 Tax Calculator
 Income tax changes introduced by the BJP govt in the past 5 budgets
 Will your salary structure change once again? Budget 2019
 Budget 2019: Big relief to middle class likely, tax exemption might go up to this limit
 Will Budget 2019 be startup friendly? Know what major reforms can take place; from tax structure to reducing MAT
 Will interim Budget 2019 reduce your tax?
 IT exemption threshold may go up in interim Budget

Here is what you got to pay Interim Budget 2019 Tax Calculator
February, 01st 2019

Income tax calculator: The government is expected to make certain changes with regards to income tax slabs for the assessment year 2019-2020 in what seems to be a move to woo middle-income taxpayers ahead of 2019 Lok Sabha polls.

Reports suggest that the government will increase the current income tax exemption threshold from existing Rs 2.5 lakh to Rs 5 lakh per annum for individuals below 60 years.

While it may not double the threshold, it could increase it by Rs 50,000 to Rs 3 lakh per annum. Subsequently, individuals aged 60-80 years will enjoy tax-free income up to Rs 3,50,000 per annum.

The government may also increase the basic income tax deduction under Section 80C from Rs 1,50,000 to Rs 2,00,000 per annum. Those with investments such as PPF, LIC, and mediclaim will be able to save more on income from investments.

How income tax is calculated

At present, the income tax slabs and exemption limits for the assessment year 2019-20 and FY2018-19 have been divided on the basis of age and residential status. Many components are taken into account while determining income tax.

Three major components are gross taxable income, HRA exemption, and transport allowance.

While HRA is decided depending on your basic salary, there are several other factors that affect it including the city you live in. If you live in a metropolitan or tier-1 city, the HRA equivalent comes to 50 per cent of your salary whereas it is 40 per cent of the salary in all other cities.

Transport or conveyance allowance, a component of your salary, is also exempt from income tax. The maximum annual exemption is capped at Rs 19,200. Any amount over the limit applies for income tax.

Apart from basic deduction under 80C, an individual can also claim additional income tax benefits under Section 80D, Section 80EE, Section 80E, and Section 80CCD.

So the total taxable income is calculated like this:

For the general category (individuals aged below 60 years), no income tax is required to be paid if annual income does not exceed Rs 2,50,000. If income is between Rs 2,50,001 and Rs 5,00,000, an individual has to pay income tax of 5 per cent along with additional health and education cess of 3 per cent.

Those earning between Rs 5,00,001 and Rs 10,00,000 will have to pay 20 per cent income tax along with an additional 3 per cent health and education cess.

General category individuals earning above Rs 10,00,000 have to pay an income tax of 30 per cent along with an additional 3 per cent health and education cess.

Use the income tax calculator to find out total liability:

The income tax calculator uses the latest income tax slabs based on income and takes into account income and deductions that are available to you in income tax act. It will provide you with an accurate insight to your income tax liability.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions