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  • Category: Miscellaneous

    Why are the new slabs in IT?

    The Finance Minister has announced that individuals who earn upto five lakh rupees need not pay income tax. 80 C exemptions have been untouched. That is fine. The major issue now is the bigger question: what are the new slabs?

    Am afraid there is a terrific amount of confusion here. There is no clarity. Members may please clarify whether there has been any authentic announcement in this regard by the Govt of India. In any case, those who for sure, may please respond.

    It will us to know the actual savings and what our tax amounts will be, for the year starting 1st April 2019.
  • #670151
    Pl read what are the new slabs in IT?

  • #670178
    According to my knowledge, A person earning upto 5 lakhs need not pay any income tax. But if a person earns more than 5 lakhs will have to pay income tax of 5% for 2 lakhs for senior citizen and 2,5 lakh for others, and 20 percent for the sum beyond 5 lakhs (irrespective of senior citizen or other).

    For e.g. (Standard deduction of Rs.50000 from total income)
    Mr X 's Annual income is Rs 500000/- (IT - Zero) He will carry home Rs. 500000/-
    Mr Y 's Annual income is Rs. 600000/- (IT - 10000+10000 = 20000) He will carry home Rs.580000/- (A senior citizen)
    Mr Q's Annual income is Rs. 600000/- (IT - 12500+10000 =22500) He will carry home Rs. 577500/- ( A normal citizen)

    Concessions under section 80 should be detected from AI accordingly and worked out.

    Supposing if Mr Q pays an Insurance of Rs. 100000/- He need to pay only Rs. 12500/- as IT.

    ISC IT experts to confirm this.

    Updated:
    Deducted Standard deduction of 50000 from the total income.

    No life without Sun

  • #670189
    There is no change in the slab rates. Only those persons who are having income up to five lakhs are exempted from paying tax. But if your income is Rs.5,00,001 also you have to pay the tax as per the old slabs and rates only. Now no tax limit is Rs.2.50.000 for all and Rs.3,00,000/- for senior citizens. If your income is above Rs. 5,00,000/- you have pay tax for the amount above the mo tax limit applicable as per the tax slabs.
    drrao
    always confident

  • #670196
    There is a standard deduction of Rs 50000/- from the total income.
    No life without Sun

  • #670232
    Mr Sun and Mr Rao have already explained the things in details and I want to add that the main idea behind this scheme is that those people whose income after all the eligible deductions falls below Rs 5 lakhs do not have to pay any tax. Practically it means that all those who earlier fell in the range of Rs 2.5 lakh to Rs 5 lakhs have been benefitted. The income tax department is also saved from the hassles of examining so many returns where income tax paid was very small amount. It seems that here is a large number of people falling in that range. So it is a win-win situation.
    Knowledge is power.

  • #670282
    These things were already announced at the time of draft budget presentations before the election and now the detailed modalities are being told. For individual tax payer there is no appreciable change in the present budget except that the taxable income (after all the eligible deductions in the total income) in the range Rs 2.5 lakh to Rs 5 lakhs is also tax free.
    Thoughts exchanged is knowledge gained.


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