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.




New Delhi, Feb 1 (PTI)
 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. LLP

DP NKD CSS RVK 

MR


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