Finance Minister Piyush Goyal Friday proposed to exempt people with annual income up to Rs 5 lakh and raise the standard deduction from Rs 40,000 to Rs 50,000 per annum.
Following is the table of impact on individual on tax proposals (in Rs):
Existing
Proposed
Existing
Proposed
Existing
Proposed Salary
5 lakh
5 lakh
7.5 lakh
7.5 lakh
20 lakh
20 lakh
Std deduction
40,000
50,000
40,000
50,000
40,000
50,000
Net total income
4.6 lakh
4.5 lakh
7.1 lakh
7 lakh
19.6 lakh 19.5 lakh
Tax
10,500
10,000
54,500
52,500
3,00,500 2,97,500
Net tax
10,500
NIL
54,500
52,500
3,00,500
2,97,500
Surcharge
Edu cess
420
NIL
2,180
2,100
12,020
11,900
Total tax
10,920
NIL
56,680
54,600
3,12,520
3,09,400
Tax savings
--
10,920
--
2,080
--
3,120
Source: B S R & Co.
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