Budget Impact Analysis: How rich Modi govt’s budgets have made you since 2014

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Updated: January 31, 2020 11:48 AM

Budget Impact and Analysis: A year before the Narendra Modi-led NDA government, in the financial year (FY) 2013-14, the tax exemption limit was up to Rs 2 lakh for people below 60 years of age.

income tax, Union Budget, Union Budget 2020, Union Budget India 2020, income tax rate, tax comparison, income tax slabs, income tax calculation, tax savingOver the years under Narendra Modi-led NDA government, tax exemption limit, tax rebate, 80C, 80D limits, tax cess and surcharges were raised.

A year before the Narendra Modi-led NDA government, in the financial year (FY) 2013-14, the tax exemption limit was up to Rs 2 lakh for people below 60 years of age, while the limit was Rs 2.5 lakh for people in the age group of 60 to 80 years and Rs 5 lakh for people over 80 years of age.

The lowest tax rate was 10 per cent and maximum deduction u/s 80C of the Income Tax Act was Rs 1 lakh and the limit u/s 80D was up to Rs 15,000 on health insurance premium paid for self and family by individuals below 60 years of age and up to Rs 20,000 for senior citizens.

Tax rebate up to Rs 2,000 was available for taxpayers having taxable income up to Rs 5 lakh, while 10 per cent surcharge was applicable on income exceeding Rs 1 crore. On the tax amount, 3 per cent Health and Education Cess was applicable.

Tax slab in FY 2013-14:

Up to Rs 2,00,000: Nil (For Senior Citizens Rs 2.5 lakh and for Super Senior Citizens Rs 5 lakh)
From Rs 2,00,001 to 5,00,000 – 10 per cent
From Rs 5,00,001 to 10,00,000 – 20 per cent
Above Rs 10,00,000 – 30 per cent
Tax rebate – up to Rs 2,000 on taxable income up to Rs 5 lakh
Education Cess – 3 per cent
Surcharge – 10 per cent on income above Rs 1 crore
Exemption u/s 80C – Up to Rs 1 lakh
Exemption u/s 80D – Up to Rs 15,000 (For senior citizens Rs 20,000)

Over the years under the Modi-led NDA government, tax exemption limit, tax rebate, 80C, 80D limits, tax cess and surcharges were raised, while the minimum tax rate was slashed from 10 per cent to 5 per cent. New tax-saving option on voluntary investments of Rs 50,000 in Tier-1 Account of NPS was introduced u/s 80CCD(1B). Rebate was increase up to the entire tax amount of Rs 12,500 for taxpayers having taxable income up to Rs 5 lakh.

Tax slab in FY 2019-20:

Up to Rs 2,50,000: Nil (For Senior Citizens Rs 3 lakh and for Super Senior Citizens Rs 5 lakh)
From Rs 2,50,001 to 5,00,000 – 5 per cent
From Rs 5,00,001 to 10,00,000 – 20 per cent
Above Rs 10,00,000 – 30 per cent
Tax rebate – up to Rs 12,500 on taxable income up to Rs 5 lakh
Health and Education Cess – 4 per cent
Surcharges:
On income between Rs 50 lakh to Rs 1 crore – 10 per cent
Over Rs 1 crore to Rs 2 crore – 15 per cent
Over Rs 2 crore to Rs 5 crore – 25 per cent
Above Rs 5 crore – 37 per cent
Exemption u/s 80C – Up to Rs 1.5 lakh
Exemption u/s 80D – Up to Rs 25,000 (For senior citizens Rs 50,000)

Budget 2020: Your income tax burden may come down – Top 5 Expectations

Following tables show tax payable for FY 2013-14 and for FY 2019-20 on taxable income of Rs 5 lakh, Rs 10 lakh and Rs 20 lakh for individuals (below 60 years of age) and senior citizens (up to 80 years of age):

income tax, Union Budget IndiaTax comparison between FY 2013-14 (AY 2014-15) and FY 2019-20 (AY 2020-21).

As the exemption limit and tax rates for super senior citizens (above 80 years of age) are same for FY 2013-14 and FY 2019-20, the tax amount will be remain same, but tax payable will be slightly higher in FY 2019-20 as the Cess on tax will be higher in FY 2019-20 (4 per cent) compared to FY 2013-14 (3 per cent).

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