The government announced a few changes in income tax rules in interim budget earlier this year.
Key changes in the income tax law includeda full tax rebate on annual income up to Rs 5 lakh and a 25 per cent hike in standard deduction allowed to salaried individuals and pensioners.
These income tax rules will come into force from Assessment Year 2020-21 (financial year 2019-20).Careful planning of investments as perincome tax lawscan lead to a significant reduction in the assessees' overall tax outgo, say financial advisors.Full tax rebate on annual personal income up to Rs.
5 lakh; in other cases; income tax rates/slabs unchangedStandard deduction limit raised from Rs.
40,000 (Budget 2018) to Rs.
50,000Hike inTDS (tax deducted at source) threshold applicable to interest earned on bank/post office depositExperts have shared few examples to explain the changes in income tax liability as per the proposed changes in laws:The government will announce its full-year budget for the current financial year on July 5, farm minister Narendra Tomar said in May.