Budget 2019 has been a
game changer for a taxpayer.
It is a huge tax planning incentive for the
middle-income group whose annual income is 5 lack or below.
People earning even
little more than 5 lack have an advantage of getting tax rebate which was first
normally given to people earning around 3.5 lack, but people with a high-income
group will not be affected by any tax rebate because there are no norms made
for them.
Budget 2019 has mainly focused on individual incomes, farmers and
unorganized sector employee who will be getting income support.
There is some
tax exemption on investment as well where individual with gross income up to
6.5 lack will not need to pay tax if they invest in some kind of provident fund
and equities.
TDS for home rent have been increased from 1.8 – 2.4 lack.
Looking at the reform, taxpayers in the lower income group will be saving up to
Rs 13,000 in tax from the proposal.
As there are no reforms made for the
high-income group, they too have little advantage of a hike of Rs 10,000 in the
standard deduction of Rs 50,000 which will bring down annual tax of salaried taxpayers
by a negligible Rs 3,000. B
y looking at all the changes made in the budget we
can say that it will give great relief to taxpayers with the middle or
low-income group.
Thank You
Regards
Author- Saisuparna Panchal
Kautilya
IBS Mumbai
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