In the Finance Bill, 2019 the maximum amount of tax rebate under section 87A of the Income Tax Act has been propsosed to increase to Rs 12,500 from the existing Rs 2,500. This proposed tax rebate will be admissble to taxpayers having total income up to Rs 5 lakh instead of current Rs 3.5 lakh.
Shalini Jain, Partner, EY India says, “This means that anyone with net taxable income up to Rs 5 lakh will not be required to pay any taxes. However, anyone with net taxable income above Rs 5 lakh will not be able to avail this tax benefit.”
It is entirely possible that Modi will be able to fool them one last time. Certainly, that's what he hopes. In the words of economist Nitin Desai, this is not an interim Budget: it is nothing but a 'Pradhan Mantri Bachao Yojana'.