Budget 2019

ajgamer

Regulars
Dec 28, 2014
1,145
111
5 Lac is the indirect way of buying the votes of Middle Class Business Man who wanted to vote against BJP in forthcoming elections.

And, What I've heard from my CA is that if anyone surpasses the 5 Lac Gross Total cannot avail the benefits.

So basically, it's not good for anyone who earns even Re. 1 more than 5 Lac.
 

amish

Star gazer
Regulars
Jul 3, 2006
24,650
1,061
Mumbai
Assuming 80C full investment of 1.5 L
50000 standard deduction
25000 mediclaim

If your income is 725000 then no tax

BUT

If your income is 725001 then you pay tax of 12500Rs!!

So 1 Re extra income and you lose 12.5 thousand rupees.

Whats the logic?

Most middle class people now earn more than 7.25 lakhs a year (definitely if you consider interest and other additional income)

So THERE IS NO REASON for a middle class family to be happy.

Its all just MAKE BELIEVE and NEWS propoganda
 
Reactions: Rupeshwar

Sushubh

Administrator
[OP]
Oct 29, 2004
413,823
12,769
Gurugram
there was a thread on reddit homepage yesterday about a guy who refused a USD 2000 salary raise in USA because it moved him into the next tax bracket.
 

amish

Star gazer
Regulars
Jul 3, 2006
24,650
1,061
Mumbai
If total money left in hand after paying tax is more, then he should take bonus.

So well he made a mistake by turning it down.. because he mis-calculated total money left with him afterwards.

But here in my above example - you lose LOTS OF MONEY just because your income is 1Re higher.

So effectively:

Person who didnt pay tax - keeps 7.5lakhs in hand

Person who paid tax - will have 7.38 lakhs

People who fall in income between (roughly) 7.5 to 8 lakhs will now try to find ways to reduce income.