Interim Budget 2019: What’s in it for individual taxpayers?

The current government is set to complete its five-year term in May, and so it presented an interim budget on 1 February rather than a full budget. Increase in tax rebate Rebate of income tax up to `2,500 is currently available to individual taxpayers with total taxable income up to `3,50,000. Resultantly, there will be nil tax liability for a resident individual whose total taxable income, after all eligible deductions and set-off of losses, is up to `5,00,000 in a financial year. Increase in the threshold limits will benefit small taxpayers whose income may be below the taxable limit but they still had to file tax returns to claim refund of TDS on interest from Bank deposits or rental income. Rate of tax applicable to a resident individual below 60 years of age and to non-resident individuals is as under: Total income of up to ₹2,50,000: Nil tax Total income above ₹2,50,000 and up to ₹5,00,000: 5% of the amount above ₹2,50,000 Total income above ₹5,00,000 and up to ₹10,00,000: ₹12,500 + 20% of the amount above ₹5,00,000 Total income above ₹10,00,000: ₹1,12,500 + 30% of the amount above ₹10,00,000 Resident individuals with total taxable income up to ₹5,00,000 will be eligible for a tax rebate up to ₹5,000; however, they will have to file a tax return to claim the rebate.