After the announcement of the budget which was publicized in February 2019. The Union Budget impacted the financial market majorly good as India economy is rapidly growing and is still the faster-growing economy. Tax Rebate is one such factor that got affected by the introduction of the Union Budget. In this article, we will help you in finding what is Tax Rebate ad what re the revised Rebate after the Budget 2019.
What is Tax Rebate?
Tax Rebate is the refund on the tax paid when the amount that was paid as a tax is more than the actual tax. Tax Payers will be provided with the Tax rebate at the end of the financial year. To claim the Tax Rebate the taxpayer must file the Income Tax Return within the specific period of time. The amount that will be paid as the Tax Rebate is paid with the interest meaning you will earn interest on the amount at the rate decided by the government.
Eligibility for Tax Rebate
The following are the eligibility for the Tax Rebate-
- The Tax Payers must be a Resident Individual
- Total Income, after Deductions, (like under Section 80C) is equal to or less than Rs.5,00,000
- The rebate amount is limited to Rs.12,500/-
Revised Tax Rebate after the Budget 2019
Union Budget offers a lot of benefits when it comes to the Tax Rebate. The following are the changes that can be noticed after the Union Budget 2019-
- The rebate mount which was Rs.2500 before was changed to Rs.12,500/-
- The Taxpayers whose income is below 5 Lakhs does not need to pay the tax earlier this limit was Rs.3,50,000/-
Latest Income Tax Slab for Financial Year 2019-20
| Income Slab | Individual (below 60 years of age) | Senior Citizen (above 60 years of age and below 80 years) | Super Senior Citizen (80 years of age and above) |
|---|---|---|---|
| Up to 2,50,000/- | Nil | Nil | Nil |
| 2,50,001-3,00,000 | 5% | Nil | Nil |
| 3,00,001-5,00,000 | 5% | 5% | Nil |
| 5,00,001-10,00,000 | 20% | 20% | 20% |
| 10,00,000 and above | 30% | 30% | 30% |
For Example-
The below table shows that how tax will affect your Income tax payment. When the Income cross the 5 Lakhs limit then the individual needs to pay the tax
| Total Income | Tax Payable (Before Cess) | Rebate U/S 87A | Tax Payable + Education cess(4%) |
|---|---|---|---|
| Rs.2,50,000/- | 0 | NA | 0 |
| Rs.3,00,000/- | Rs.2,500/- | Rs.2,500/- | 0 |
| Rs.5,00,000/- | Rs.12,500/- | Rs.12,500/- | 0 |
| Rs.8,00,000/- | Rs.72,500/- | Not Eligible | Rs.72,500/- + 2900=75,400/- |
