budget 2019



sir in this budget 87a rebate is increased to Rs.12500. so assessee upto taxable income rs.500000 need not file return and pay no tax. about 3 crore assessee are benefited. big revenue losses to govt. most of the salary people get this benefits. if this rebate continue, middle class people will not pay tax in future days. so is this rebate possible to continue in future? if it is possible to continue, how many years government can continue ?. because India is a developing country. it needs more money to its development. in future days government can reduce or remove this rebate? experts please explain detailly. because most of my clients are middle class people. thanks in advance

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KVO Merau Kutchh

First of all the proposal is for rebate u/s. 87a, and not increase in slab. It means if total income is above 2.50 lakh, return need to be filed. Yes, tax liability will be nil till 5.00L income.

Generally, rebates u/s. 87a are changed year to year, but no government would dare to tax lower middle class, when once tax relief is given.


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The assessee need to file the return if the income is more than basic exemption limit, it means if income is more than 2.5 Lakh, it is mandatory to file the ITR. There is no tax liability till the income of RS. 5 Lakh due to rebate u/s 87A and if the assessee has specified investment pertaining to fall u/s 80C, then the income up to Rs. 6.5 lakh is not taxable.
 
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Article Asistant

Government is already earning more income for its development under GST compared to Income Tax.

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CA Final student

Government is earning more Money through indirect tax system.
 
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