Breaking No Income tax upto 5 LAKHS annual income

[piinku1]

*Wrong perception about NO Income Tax upto Rs 5 lakh to all tax payer, Income Tax is still payable @5% on Income upto Rs 5 lakh*

Finance Minister while presenting the Budget speech has clearly stated that there will not be any Income Tax to the on Income up to Rs 5 lakh, but when Finance Bills came on the records it clear the myth spread on the news media and other websites.

As per the Clause 8 of the Bill seeks to amend section 87A of the Income-tax Act to provide relief to the individual taxpayers by increasing the maximum amount of tax rebate to twelve thousand five hundred rupees from existing two thousand five hundred rupees. The tax rebate shall now be admissible to taxpayers having total income up to five hundred thousand rupees, instead of existing three hundred fifty thousand rupees.

*No tax upto total taxable Income of 5Lakh is in the form of rebate under section 87A which means It will be available to only those Individuals whose Total Taxable Income is less than or equal to 5Lakh (after availing all available deductions).*

There is no change in Tax slabs and there is no exemption to those Individuals whose total Taxable Income (after all deductions) is more than 5Lakh.

Another jumla

 

[abhi1276]

According to this budget. 2 persons A & B.
A earns 4,99,999. No tax. So, money in hand = 4,99,999
B earns 5,00,001. 0 tax on 2.5 lakh + 5% tax on 2.5 lakh + 20% tax on 1 rupee. Total tax = 12500. Net money in hand = 4,87,501 (12498 less than A)
#WahModiJi
#Modinomics

I was about to quote same thing just an increase of Re1 it will become burden of Rs12499. Better i will tell my boss to donate Re.1.....

 

[sivakumar79]

No tax upto total taxable Income of 5Lakh is in the form of rebate under section 87A which means *It will be available to only those Individuals whose Total Taxable Income is less than or equal to 5Lakh (after availing all available deductions).*

*There is no change in Tax slabs and there is no exemption to those Individuals whose total Taxable Income (after all deductions) is more than 5Lakh.*

 

[iqbal008]

wish we have elections more frequently, common people especially salaried genuine tax payers will benefit more often.
On humour side ...I see common trend started now on whatsapp, social media.
Modi fans - wait for more time there will be no more income tax.
Modi opposer - wait for more time there will be no income left to pay any tax.

 

[Digital Mastermind]

It's a shame that the government have broken the traditions and came out with a practically full budget rather than an interim one. This Rebate, yes it's a rebate not a change in slab and you won't benefit from it if your Income after deductions is 5 lakh+. Also this needs to be approved in parliament till then it's just a promise that we will do that if we win.

Also we need to wait for the finer details as to from where the funds will be generated for all the promises made, that's the most important thing.

For me, this government can't be trusted. They lie and lie and lie all the time, now even if they transfer 15 lakhs that they promised before 2014 to my account they won't get my vote

Pls provide the video of 15 lakhs or eslr delete ur post. U also lie

 

[royalstar]

But if a person's annual income is 650000. And he has 150000 savings in Life insurance and equities. Will he totally tax free in this method?. Bcoz 150000 savings is tax free under section 80c

 

[abhi1276]

But if a person's annual income is 650000. And he has 150000 savings in Life insurance and equities. Will he totally tax free in this method?. Bcoz 150000 savings is tax free under section 80c

So to save 12500 rupees we have to invest 150000

 

[royalstar]

So to save 12500 rupees we have to invest 150000

No 12500 saving is just upto 5 lakh . On 650000 it will be 27500.

 

[abhi1276]

No 12500 saving is just upto 5 lakh . On 650000 it will be 27500.

Then also atleast we have invest 1.5 i know it will give return but after a long period of time.....its more benefit for those who already have investment and now with rebate then will be most happiest....but for those who dont have investment so for them its a flat 250000 deduction plus if standard deduction so for eg if his income is 600000 so minus 50000 sd with no investment then also he is above 550000 so for having extra 50000 he will pay 17500 plus 4%cess so 18200 tax so tax for that persion is 36.4% just having 50000 extra. This 36.4 taken only for calulation puspose for 50000 extra when he pay 18200 and not on slabwise which is 5%.

 

[abhi1276]

There is one mistake in this budget which was needed or else opposition will curse NDA is that they have not made burnol "TAX FREE"
Joke a part.