Going by the Budget 2019 proposals, a salaried individual with gross total income up to Rs 7.75 lakh can invest in various tax saving scheme and avail of different deductions to reduce taxable income to Rs 5 lakh and consequently pay no tax for FY2019-20. Such a person would be saving tax of Rs 15080 compared to tax payable in current FY 2018-19.
Here’s how. Say your gross total income for FY 2019-20 is Rs 7.75 lakh.
First you can claim standard deduction of Rs 50,000 for FY 2019-20 as Budget 2019 proposes to hike this standard deduction by Rs 10,000/- to 50,000/-
First you can claim standard deduction of Rs 50,000 for FY 2019-20 as Budget 2019 proposes to hike this standard deduction by Rs 10,000/- to 50,000/-
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You can invest Rs 1.5 lakh under section 80C in any of the eligible tax saving avenues of PPF, EPF etc or use tuition fees paid for children to claim a deduction of the same amount from the gross total income. This can be claimed as a deduction from your gross income of Rs 7.75 lakh reducing it to Rs 6.25 lakh.
Next, invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme.
Next, pay Rs 25,000 premium for medical insurance policy(ies) for yourself and family and claim a deduction of the same amount from gross total income under section 80D. This deduction can be higher if you also pay medical insurance premium for your senior citizen parents
Now calculate the Total from Income Tax for one salaried person, Relief Standard Deduction Rs. 50,000 + U/s 80C Rs. 1.50 Lakh +U/s 80CCD(1B) Rs.50,000/- + U/s 80D Rs.25000/-TOTAL DEDUCTION (EXEMPTION) Rs. 2,75,000/-. If your Total taxable income is Rs.7,50,000/- the you can great relief from the Income Tax As per the Tax Slab that is Income Rs. 7,50,000/- - 2,75,000/- = 5,00,000/-, = Tax is 0.
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6) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20 in New Format
7) Automated Income Tax Form 16 Part B for the F.Y. 2019-20 in New Format
