Union Budget 2019: Income tax rebate hiked to Rs 12,500

The interim budget presented in the Parliament on Friday by finance minister in-charge Piyush Goyal has given more relief to taxpayers. The finance minister has increased the tax rebate to Rs 12,500 from the existing Rs 2,500.
“Clause 8 of the (Finance) Bill seeks to amend section 87A of the Income-tax Act to provide relief to the individual taxpayers by increasing the maximum amount of tax rebate to Rs 12,500 from existing Rs 2,500,” the Finance Bill said.
“The tax rebate shall now be admissible to taxpayers having a total income up to five hundred thousand rupees, instead of existing three hundred fifty thousand rupees,” the bill stated.

The FM announced that there would be no tax for income up to Rs 5 lakh and increased the standard deduction for taxpayers from Rs 40,000 to Rs 50,000. Individual taxpayers now pay 5% income tax and a health and education cess of 4% on the tax amount for income of Rs 2.5 lakh to Rs 5 lakh.