Budget 2019 has made some changes to Income tax for individual – the highlight being full tax rebate for individuals earning below Rs 5 Lakhs. There has been no changes in the income tax slab. We highlight the changes and give you the new tax calculator for FY 2019-20 [AY 2020-21].
Contents
Changes in Income Tax Rules:
- Rebate under Section 87A changed from Rs 2,500 to Rs 12,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs (from Rs 3.5 Lakhs)
- Standard Deduction raised for Salaried & Pensioners from Rs 40,000 to Rs 50,000
- Increased Tax for super-rich: Surcharge increased to 25% for income between 2 to 5 crore & to 37% for income beyond Rs 5 crores
- Additional Tax Deduction of Rs 1.5 lakhs u/s 80EEA on home loans on purchase of affordable home
- Additional Tax Deduction of Rs 1.5 lakhs u/s 80EEB on Auto loans on purchase of Electric vehicles
- No Tax on Notional Rental Income from Second House
- Capital gains exemption on reinvestment in two house properties: Tax payers can now buy two houses on sale of 1 house if the capital gains are less than Rs 2 crore. This benefit can be availed only once in lifetime
- TDS threshold increased from Rs 10,000 to Rs 40,000 on Bank Interest Income
For Details of changes read: 19 Key changes in Budget 2019
Download Income Tax Calculator (FY 2019-20)
Income Tax Slab for FY 2019-20 [AY 2020-21]
For Income Tax Purpose – citizens above age of 60 are considered as Senior Citizens and above age of 80 are considered Very Senior citizens.
Download Income Tax Calculator
You can download the Income Tax Calculator for FY 2019-20 [AY 2020-21] from the link below.
Download Income Tax Calculator (FY 2019-20)
Also Read: 19 Important Changes in Tax Rules from April 1, 2019
Limitations of the Calculator:
- This Calculator is for people with only one home
- It does not computes Capital Gains Tax
These features might be incorporated in next versions of the Tax calculator
You can also download Income Tax Calculator for FY 2018-19, FY 2017-18, FY 2016-17, FY 2015-16, FY 2014-15, FY 2013-14, FY 2012-13 and FY 2011-12 by clicking on respective links.
how to filling Income Tax return
The Interim Budget 2019, announced by Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal, laid out several tax sops for individuals. The schemes have been designed to benefit the middle class. The budget provides for Tax benefits
of Rs.18,500 crore to an estimated 3 crore middle-class taxpayers comprising self-employed, small business, small traders, salary earners, pensioners, and senior citizens. Nil Income Tax for individuals with a taxable income of up to Rs 5 lakh. The finance minister proposed that individuals earning a taxable income of up to Rs 5 lakh will not have to pay tax. Thus, a person with an income of Rs 6.50 lakh, who claims full benefit under Section 80C of Rs 1.50 lakh, will not have to pay tax on his income.
thank you for simplifying the process of income tax calculation
Hi,
How can we download the excel? more then four buttons show.
The GST going success or failures in India.
Hi Amit
Thanks for sharing the excel tool, but one clarification is in 80 C home loan repayment principal amount it is mentioned as 50 % of actual amount. Please confirm on this.
I am sorry this was written by mistake. 100% of home loan principal (up to Rs 1.5 lakh) is eligible for tax exemption u/s 80C.
If CTC is 6 25 lakh and gross salary is 524806 in that case TDS will be deducted or not?
It depends on net taxable salary. If you make tax saving investments there may not be any TDS deducted.
Standard Deduction Words “fifty thousand” shall be subs. for “forty thousand” by the Finance Act, 2019 (w.e.f. 1-4-2020).
Can you please Add how to fill form 15G File sir….
Hello Amit,
Thanks a lot for sharing the excel utility on computing income tax liability across many assessment year. I noticed a gap in the utility which i want to bring to your notice.
The surcharge calculation @10% for >50L and @15% for >1Cr is not proper. This surcharge is on net taxable income and not gross income. Also if the surcharge tax @10% or 15% is more than the increase in taxable income from the applicable base, the individual will get a marginal relief of the difference amount between the excess tax payable on higher income. Request you to please update the logic in the excel and share, thanks
Regards
Ashish
Thanks for pointing this out.
I corrected it. You can recheck from the updated version.
Please give the link for fy 2019-2020 and where ay 2020 2021
How is Basic Tax Exemption calculated?
If an employee is having 12lakhs per annum as CTC.
Its 2.5 lakhs for general public and Rs 5 lakhs for person with more than 80 years of age
Hi,
Interest Received from Bank Savings account will Entertain any TDS? and what is the tax for Term deposits and recurring deposit interest accrued in your tax calculator it is not showing current budget values
Can you please add the entry of 80 CCD (2) as well ?
Sure will do
Sir plz provide free eBook for fy2019-20…Thank you.
Wherr is the download link?
Use this link