Budget 2019: No Income Tax on Individuals with Income up to INR 5 Lakh

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The income tax for salaried people has always been one of the most important aspects of any Budget. Budget 2019 is no exception. The then Finance Minister, Piyush Goyal, had announced in the Interim Budget that people with an annual income of less than INR 5 lakh do not have to pay any taxes in the financial year 2019-20.

Details about tax on income under INR 5 lakh

The taxable income of any individual is calculated after calculating the different deductions offered by the Income Tax Department. Under the Sections 80C (up to INR 150,000), 80D (up to INR 1 lakh), 80TTA (up to INR 10,000), 80TTB (up to INR 50,000), 80G (deduction for charitable donations), and more, the taxpayers are eligible to receive standard deductions on their tax. Hence, even if you have an annual income of more than INR 5 lakh but it comes down under the INR 5 lakh slab after the deductions, you will have to pay no taxes.

However, according to the latest news of the income tax department, you still have to file your Income Tax Returns (ITR) for the financial year 2018-19 unless your annual income is under INR 2.5 lakh. The tax is implemented depending on tax slabs. Under the tax slabs, different amount of taxes applies to the individuals, depending on their annual income and age.

Income tax slabs applicable up for the financial year 2018-19

 Explained below are the income tax slabs applicable to various age groups for the financial year 2018-19. The explanation contains details of taxes that are payable if the annual income is up to INR 5 lakh.

Income tax slabs for individuals below 60 years of age

Income tax slab Tax rate
Up to INR 2.5 lakh Exempted from tax
INR 2,50,001 to INR 5 lakh 5% on the income over the INR 2.5 lakh + 4% health and education cess

Income tax slabs for the senior citizens (60-80 years of age)

Income tax slab Tax rate
Up to INR 3 lakh Exempted from tax
INR 3,00,001 to INR 5 lakh 5% on the income over the INR 3 lakh + 4% health and education cess

For super senior citizens, who are over 80 years in age, income up to INR 5 lakh is tax-free.

Every earning individual of the country must file the ITR on time. Remember to make sure that you are filing the ITR according to your tax slab to avoid any mistake.

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