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    Budget 2019: What happens to your taxes

    Synopsis

    ​Pick the case study nearest to your annual salary to determine the Budget impact on your savings and taxes.

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    If your income is not more than Rs 10 lakh, you have gained the most from the budget.
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    (This story originally appeared in on Jul 06, 2019)
    Depending on which income range you fall in, here are some examples to make you understand better what the change in your taxes will look like now.

    Pick the case study nearest to your annual salary to determine the Budget impact.

    Biggest loser- Annual salary: Rs 6 crore
    For example: Owner of co-working space
    in411
    With its mix of stylish design and free-flowing coffee, his is one of the coolest co-working spaces in town. But now with the FM dropping a surcharge bomb and millennials dropping their manners, he’s all hot and bothered.

    Tax-
    Pre-budget: Rs 2,11,78,170
    Now: Rs 2,52,29,646
    Losses: Rs 40,51,476
    More tax: 19.13%

    Assumptions:
    • Purchased an apartment
    • Deduction on home loan interest is 2,00,000
    • Investments under 80C is 1,50,000
    • Interest income 50,000
    • Age of the owner greater than 60 years

    Annual salary: Rs 2.5 crore
    For example: Web series writer
    in412
    The episodes are tight, the tension real and the climax is humming along like her new electric car. It’s pretty much the only break the FM has given her. She’s hoping the animation giants take up the FDI invite though, she has a killer script for ‘Beauty and the GST’.

    Tax-
    Pre-budget: Rs 86,34,522
    Now: Rs 93,26,850
    Losses: Rs 6,92,328
    More tax: 8.02%

    Assumptions:
    • Purchased an apartment
    • Deduction on home loan interest is 2,00,000
    • Investments under 80C is 1,50,000
    • Interest income 50,000
    • Interest deduction on purchase of electric vehicle of 1,50,000

    Annual salary: Rs 20 lakh
    For example: Space scientist
    in413
    Her stars are shining ultra bright these days, what with the work scene revving to the moon and the 2BHK buy just in time to tap into the lunar leap in housing loan deduction. Those marble floors and fancy faucets she’s picked will cost more but that’s not rocking her rover yet.

    Tax-
    Pre-budget: Rs 3,35,400
    Now: Rs 3,35,400
    Savings: Nil
    Change in tax: Zero

    Assumptions:
    • Purchased an apartment valued up to 45 lakh
    • Investments under 80C is 1,50,000
    • Interest deduction on housing loan claimed of 1,50,000
    • Interest income of 60,000

    Annual salary: Rs 10 lakh
    For example: Forest range officer
    in414
    He’s laughing all the way to the machan: for even with his peanut pay packet, he can now afford to buy a home and maybe even an EV for missus. The flat he’s been eyeing will save 3.5 lakh a year. Who knows, with this luck, he might count 10 more tigers this year!

    Tax-
    Pre-budget: Rs 44,200
    Now: Rs 44,200
    Savings: Nil
    Change in tax: Zero

    Assumptions:
    • Purchased an apartment valued up to 45 lakh
    • Investments under 80C is 1,50,000
    • Interest deduction on housing loan claimed of 1,50,000

    1 Comment on this Story

    Deepak Soni400 days ago
    Obviously the taxes paid by me are to support the luxurious lifestyle of the bureaucrats and politicians and take their care after their retirement.
    The Economic Times