The finance minister Nirmala Sitharaman presented the Union Budget 2019 on July 5th 2019. Following are the important changes in levy of income tax that may affect you.
The income tax slabs have remained unchanged from the previous financial year, the standard deduction for the salaried has increased from 40,000 to 50,000 and rebate is given upto 12,500 if your taxable income is upto 5,00,000, if you fall in that category, you still have to file your IT returns but can claim full rebate of tax payable under section 87A in the ITR. Applicable tax slabs for the AY-2019-2020 are as follows
Income tax slabs for resident Individual below 60 years of age
| Taxable Income | Tax rates |
| upto 2,50,000 | Exempted |
| 2,50,000 – 5,00,000 | 5% of taxable income exceeding 2,50,000 |
| 5,00,000 – 10,00,000 | 12,500 + 20% of taxable income exceeding 5,00,000 |
| 10,00,000 and above | 1,12,500 + 30% of taxable income exceeding 10,00,000 |
Additionally 4% cess is applicable on tax payable. For resident Individuals above the age of 60 years but below 80 years, the exemption limit is 3,00,000 and for those above 80 years of age, it is 5,00,000 and other slabs remain the same.
Apart from this surcharge for the super rich has increased to 15% for income above 1 crore but below 2 crore, to 25% for income above to and below 5 crore and to 37% for income above 5 crores.
The due date for filing the return for individuals has been extended from 31st July 2019 to 31st August 2019, delay after which will be penalised with Rs 5,000 plus interest on any taxes due and further delay after 31st December will increase the penalty amount to Rs 10,000.
Another important announcement made was that for those not having a PAN card yet can file their taxes using Aadhar interchangeably.
Their are tutorials uploaded by the Income Tax department and other online sources to help you understand the latest changes in the ITR forms. Do file the returns before hand to avoid the last minute rush. Write to us in case of any queries.