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Upto to 5 lakh it is rebate or basic limit?

01 February 2019

Sir here im not getting that 5 lakh said on financial budget 2019-20 is actually rebate or basic exemption limit.. If my income is rs 5, 50, 000 than my tax liability is 10, 000+ surcharge or 22, 500+surcharge?

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8 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 01 February 2019

250000*5%

50000*20%

plus 4 % cess

1 Like

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P. Venkata sai Mahendra (CHARTERED ACCOUNTANT) (41 Points)
Replied 01 February 2019

It is rebate. This benefit available only those assesses whose net total income is <= 5,00,000.

1 Like

RAJKUMAR TG (397 Points)
Replied 01 February 2019

even n if ur gross total income is 6.5 lacs and if u have put tax saving dep of 1.5 lacs or elss or ppf ur tax liability is zero
u have to file return to claim it.
total income net of deductions upto 5 lacs .... no tax

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 01 February 2019

even if you have home loan and paying interest say upto 2lacs then no need to pay tax for income upto 850000

RAJKUMAR TG (397 Points)
Replied 01 February 2019

u cant expect more.
govt needs money for development projects.
each asset class will b taxed.
u cant escape.

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happyvalley blooms (58 Points)
Replied 02 February 2019

Originally posted by : RAJKUMAR TG
	even n if ur gross total income is 6.5 lacs and if u have put tax saving dep of 1.5 lacs or elss or ppf ur tax liability is zero u have to file return to claim it.total income net of deductions upto 5 lacs .... no tax

you mean an Amaadmi with total income of just below 5 lakhs (only Bank interest / no property /no stocks /bonds etc) with zero 87C investments claims has zero tax ?

RAJKUMAR TG (397 Points)
Replied 02 February 2019

yes if approved by next govt

happyvalley blooms (58 Points)
Replied 02 February 2019

Thanks for your reply.

now understood that IT filing threshhold is till the same Rs 2.5 lakhs .

but system applies new 87A rebate from 2500-12500 (if implemented after election) .

so if some one with Rs 499999 income -syatem charges 5% tax for 2-5>5 lakhs & then applies Rebate of Rs 12500 . Hence effectively some one earning 499999 will get total TDS refunds as zero tax after rebates.

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In the Finance Bill, 2019 the maximum amount of tax rebate under section 87A of the Income Tax Act has been propsosed to increase to Rs 12,500 from the existing Rs 2,500. This proposed tax rebate will be admissble to taxpayers having total income up to Rs 5 lakh instead of current Rs 3.5 lakh.