Income Tax standard deduction for FY 2019-20

income-tax-standard-deduction-for-fy-2019-20

New Year and new budget preparation. So what will 2019 bring in new for us? Well, a new budget plan. Budget preparation is already going on in a full swing and it seems everyone is waiting with their eyes wide open to know about the upcoming budget plan which is going to be announced on 1st February 2019 by our Finance Minister Mr. ArunJaitley. Here, we will be talking about some of the changes that might place. If you remember last year’s budget plan, there was no changes in the income tax slabs as such other than the announcement of deduction of Rs, 40,000, along with which we receive many reimbursements like Rs, 15,000 medical reimbursement and then the transport allowance of Rs. 19,200 was also there. When it came to individual income tax, it was increased by 3 to 4%. Now, let’s see and try to analyses the profit and also the losses in terms of income tax that may occur.

How much tax will you save if your income is more than Rs. 4 lakhs?

If you earn more than 4 lakhs a year then the taxable income for this amount that you will save is Rs, 244 for the financial year 2018-19. Let’s see the chart below to understand it better.

  For the year 2017-18 For the year 2018-19
Taxable income Rs. 4,00,000 Rs. 4,00,000
Standard deduction   Rs. 40,000
Medical reimbursement and transport allowance Rs. 34, 200  
Net taxable amount Rs. 3, 65, 800  
Income tax Rs 5, 964 Rs. 5, 720
Savings   Rs. 244

How much tax will you save if your income is Rs. 8 lakhs per annum?

  For the year 2017-18 For the year 2018-19
Taxable income Rs. 8,00,000 Rs. 8,00,000
Standard deduction   Rs. 40,000
Medical reimbursement and transport allowance Rs. 34, 200  
Net taxable amount Rs. 7, 65, 800  
Income tax Rs 67, 630 Rs. 67, 080
Savings   Rs. 550

How much tax will you save if your income is Rs. 12 lakhs per annum?

  For the year 2017-18 For the year 2018-19
Taxable income Rs. 12,00,000 Rs. 12,00,000
Standard deduction   Rs. 40,000
Medical reimbursement and transport allowance Rs. 34, 200  
Net taxable amount Rs. 11, 65, 800  
Income tax Rs1, 67, 107 Rs. 1, 66, 920
Savings   Rs. 187

Now, for those whose income is Rs. 16 lakhs per annum and your tax liability has increased because of cess then an extra Rs. 1,013 income tax will be charged for the ongoing year.

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