Interim Budget 2019: How Your Income Tax Liability Is Set To Change From Assessment Year 2020-21

Income tax rules (interim Budget 2019): Careful planning of investments can lead to a significant reduction in the assessees' tax outgo, say experts.

Interim Budget 2019: The government hiked the standard deduction limit by 25%

The government announced a few changes in income tax rules in interim budget earlier this year. Key changes in the income tax law included a full tax rebate on annual income up to Rs. 5 lakh and a 25 per cent hike in standard deduction allowed to salaried individuals and pensioners. These income tax rules will come into force from Assessment Year 2020-21 (financial year 2019-20). Careful planning of investments as per income tax laws can lead to a significant reduction in the assessees' overall tax outgo, say financial advisors. In the interim Budget, the last Budget announced ahead of the general election which concluded in May this year, the government announced the following measures, among others: Full tax rebate on annual personal income up to Rs. 5 lakh; in other cases; income tax rates/slabs unchanged Standard deduction limit raised from Rs. 40,000 (Budget 2018) to Rs. 50,000 Hike in TDS (tax deducted at source) threshold applicable to interest earned on bank/post office deposit Experts have shared few examples to explain the changes in income tax liability as per the proposed changes in laws:

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