What about the others, I.e., those earning more than Rs 5 lakh? Do they stand to gain anything? Pick the case study nearest to your annual salary to determine the Budget impact.
By ET Online | Updated:
Getty Images
Those with net taxable income below Rs 5 lakh are the biggest gainers from Piyush Goyal's budget.
Yes, yes, those with net taxable income below Rs 5 lakh are the biggest gainers from Piyush Goyal's budget. But what about the others, I.e., those earning more than Rs 5 lakh? Do they stand to gain anything? How much do they save from the budget proposals?
Pick the case study nearest to your annual salary to determine the Budget impact.
Single working mother Annual Salary: Rs 6.5 lakh
Between baby boy's kindergarten admission, the maid situation and the long office commute, tax is one less thing she will have to worry about. Thanks to her PF ad other investments, she will pay zero tax.
Tax Pre-Budget: Rs 10,920 Now: NIL
Savings: Rs 10,920 Assumptions
Investment under section 80C: Rs 1,50,000
Less tax: 100 per cent
Retired Army Officer Annual Salary: Rs 15 lakh
ADVERTISEMENT
The colonel hasn't much to drink to this time. He gets a standard deduction of Rs 10,000 extra like everybody else, that's all. On the other hand, he could toast the highest-ever defence budget of Rs 3 lakh crore.
Tax Pre-Budget: Rs 2,16,840
ADVERTISEMENT
Now: Rs 2,13,720
Savings: Rs 3,120
Assumptions
Investment under 80C is Rs 1,50,000
Interest income Rs 60,000
Less tax: 1.44%
Radiologist Annual Salary: Rs 1.2 crore
She seems to have sold her flat in time. With the extended LTCG tax benefit, she can reinvest in two houses and move her parents in. And no more tax on the deemed rent of the other house either. That's a win-win even in X-Ray vision.
Tax Pre-Budget: 41,06,466 Now: 40,41,882
Savings: Rs 64,584
Assumptions:
Investment under 80C is Rs 1.5 lakh
Interest income: Rs 50,000
LTCG on sale of residential property is Rs 1.5 crore
Deemed rent on housing property: Rs 15,000 per month = Rs 1,80,000
