Finance Minister Arun Jaitley on Thursday presented the last full-year Budget before the 2019 general elections. He started his speech by highlighting the achievements of the government and the various economic reforms, including Goods and Services Tax, undertaken by BJP in the last four years. He said this year’s budget will focus on strengthening agriculture and rural economy. While no changes in the personal income tax slab for the current fiscal year were introduced, the government did announce a standard deduction of Rs 40,000 in lieu of transport and medical reimbursements for salaried classes.
Arun Jaitley said the government has made many positive changes in the personal income tax rates applicable to individuals in the last three years, therefore, it won’t make any changes this time. “The government had made many positive changes in the personal income-tax rate applicable to individuals in the last three years,” Jaitley said in his Budget speech. Therefore, I do not propose to make any further change in the structure of the income tax rates for individuals,” Arun Jaitley said.
Income Tax is the tax levied directly on personal income. At present, there are three slabs — 5% income tax for those whose annual income is between Rs 2.5 lakh and Rs 5 lakh, 20 percent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 percent on income above Rs 10 lakh. Individuals earning below Rs 2.5 lakh do not have to pay any income tax.
Here is how you can calculate your tax slab by using this calculator: