Have to pay 12500 as Income Tax if income goes beyond One Rupee

Finance Minister income tax proposal means that if your income is more than Rs. 7 lakhs, then you have to pay an income tax of Rs. 12500. Yes, this is the truth of income tax proposals in 2019 this year. This time, the income tax-free income has been increased to 5 lakh rupees. But this truth is hidden in this declaration only.

It has been announced in the budget this time that income up to Rs 5 lakh will be totally tax-free. But this five lakh rupee of tax-free income is divided into two parts. The starting price of 2.5 lakh will be treated as separate, while the latter will be given a discount of 2.5 lakhs under Section 87A. This discount will be valid until your income is up to a limit. As soon as the income limit will be more than one rupee, section 87A will not be available.

Know if the announcement means that if you are a job holder and you have a total income of 7 lakh rupees in your year then you can make full income tax free. In this, your income of 5 lakh will be completely tax free. After this, 50 thousand rupees will benefit as standard deduction. And you will save by investing Rs 1.5 lakh under 80C. Thus, your income of 7 lakh rupees will be tax free.

Now learn how to earn an increase of Rs 1 lakh.

The Finance Minister has used Section 807A for tax free of income of Rs. 5 lakhs. So if you are a job seeker and your income is more than Rs 1 lakh, then you will not get the benefit of section 807A.

Learn how to add your income tax liability in such a situation.

Earnings will be deducted from the tax of Rs. 700001- 2.5 lakhs. Income - After this, 50 thousand rupees will be given standard deduction - after that, you can save Rs. 1.5 lakhs by investing under 80C.

Learn how much income you have to pay on income tax of Rs 700001, you will be able to save the income tax of Rs 4.5 lakh. In this way, you have to pay an income tax on Rs 25000. On this income, you will get an income tax of 5%. This tax is 12500 rupees.