The Budget 2019 proposal on the income tax rebate is most beneficial for the lower and middle income group – and is estimated to put 3 crore tax payers out of the tax bracket.
As expected, the Interim Budget for FY2019-20 was aimed at pleasing farmers as well as the middle class. The proposal is to offer full income tax rebate for taxable income up to Rs 5 Lakh. Individuals with taxable income between Rs 2.5 lakh and Rs 5 lakh can save up to Rs 12,500 in taxes, giving them a higher disposable income. In addition, standard deduction for salaried employees has been increased from Rs 40,000 to Rs 50,000.
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