Budget 2016 has good news for people with under Rs 5 lakh salary –Know why

Zee Media Bureau

New Delhi: Finance Minister Arun Jaitley has not made any changes in the personal tax limit, but his Budget 2016 announcement certainly has some good news for people earning less than Rs 5 lakh.

 

So if you calculate the total exemption limit, then, as per the announcement, the tax exemption has been raised.

This announcement will benefit over 2 crore tax payers because currently, a salaried individual with income up to or equal to Rs 5 lakh could only avail a rebate in tax equal to 100 percent of the income tax payable or Rs 2000 whichever is less.

 

However, the FM in his latest Budget has announced to raise the ceiling of tax rebate under section 87A from Rs 2000 to Rs 5000 to lessen tax burden on individuals with income upto Rs 5 lakh.