Logo of HRAPP the best solution for HR & payroll management and employee monitoring
Home
try for free

Big Income Tax Relief for Salaried Class

February 1, 2019

As per the budget proposals 2019, big income tax relief for the salaried class who drawing annual income up to Rs.5 lakh propose to be made tax-free.

Full Tax rebate for Annual Income up to Rs.5 Lakh

The major boost to the salaried class,
  • Finance Minister announced during the Interim Budget that all those earning up to Rs.5 lakh a year will not have to pay income tax.
  • Until now, the IT exemption was up to Rs.2.5 lakh.
  • This will benefit nearly 3 crore middle-class income earners.
  • This ensures that there would be a saving of Rs.12,500 for taxpayers who earn less than Rs.5 lakh.

360 degree HR management solution for enterprises , big or small. With a fully integrated employee management software organization can manage the hiring and payroll process. Remote Employee Monitoring has been made easy with an an best in class employee time tracking software.

Good News Taxpayers!!!

  • Individuals with gross income up to Rs.6.5 lakh will not need to pay any tax.
  • They also avail the full benefit of Rs.1.5 lakh Section 80C deduction.
  • As per the proposal, those who earn more than Rs.5 lakh per annum and less than Rs.10 lakh will have to pay Rs.12,500 plus 20% of the amount by which income exceeds Rs.5 lakh.
  • When the total income exceeds Rs.10 lakh, they will have to pay Rs.1,12,500 plus 30% of the amount by which income exceeds Rs.10 lakh.
  • As per the current tax slabs, for instance

INCOME PER ANNUM

TAX RATE

Up to Rs.2.5 Lakh No Tax
Rs.2.5 – 5 Lakh 5%
Above Rs.5 Lakh Limit to Rs.10 Lakh 20%
Above Rs.10 Lakh

30%

TDS

  • The Tax Deducted at Source threshold has increased to Rs.40,000 from Rs.10,000.
  • There will also be no tax on notional rent on the second vacant house and no TDS on house rent up to Rs.2.4 lakh.

Standard Deduction

  • It has raised to Rs.50,000 from Rs.40,000.
  • The std deduction is a fixed amount of deduction, which can be reduced by salaried taxpayers, from their gross salary.
  • This was introduced last year after being abolished in the Finance Act 2005.
  • This deduction replaced the existing transport allowance of Rs.1600 per month and medical allowance of Rs.15,000 per annum last year.

To follow our previous HRAPP blog

For more details

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

cartoon image of a glass
HRAPP Activity Tracker
Desktop monitoring software for proactive businesses
Download the desktop client for your operating system
(Talk to us for custom build)
image link to download windowsimage link to download linuximage link to download mac
Related Articles
Try HRAPP free for 14 days. No Credit Card required.
Try Now
hrapp-logo-white-color
HRAPP is an intuitive cloud-based HRMS solution with a complete suite of features.
© 2013-2021 Caprice Technologies Pvt Ltd. All Rights Reserved
Sitemap
Top crosscross-circletext-align-right linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram