Income Tax Calculator 2019: Those who prepare first are always in front of the line when it comes to making wealth and getting rich. So, if you want to save your money, you need to start preparing for tax season here and now. For that, you should be well aware of changes made by government and how they impact you.
The best way to do that is through the Income Tax Calculator 2019. Notably, in her Union Budget speech on July 5th, Finance Minister Nirmala Sitharaman had proposed to hike the surcharge on high earning individuals earning Rs 2 crores and above. Proposing the income tax surcharge on the super-rich Indians, Sitharaman said that those who are in the high earning brackets are required to contribute more in the nation-building process.
Proposing the income tax surcharge on super-rich Finance Minister Sitharaman had said on the floor of the parliament, "In view of rising income levels, those in the highest income brackets, need to contribute more to the Nation's development. I, therefore, propose to enhance surcharge on individuals having taxable income from 2 crores to 5 crores and 5 crores and above so that effective tax rates for these two categories will increase by around 3 per cent and 7 per cent respectively." Earning individuals can find out their income tax outgo through the Income Tax Calculator. The Income tax calculation given below is by Tarun Garg, Manager - Tax at Deloitte Haskins & Sells LLP. It shows how an individual earning above Rs 2 crore will be affected by Sitharaman's proposal:
The Income Tax Calculator above shows that income tax for those earning Rs 10 crore per annum will now have to pay Rs 68 lakh. Similarly, those earning individuals whose annual income is in between Rs 3 crore to Rs 5 crore. Current Income tax on Income of Rs 3 Crore stands at Rs 1,05,39,750. With the proposed increase in the surcharge rate from 15 per cent to 25 per cent in the income category of more than Rs 2 Crore to Rs 5 Crore, the tax on the income of Rs 3 Crore comes out to be Rs 1,14,56,250 i.e. an increase of Rs 9,16,500, averred Garg.
On income tax outgo for an earning individual whose annual income is Rs 8 crore, Garg had revealed that prior to surcharge, income tax on Income of Rs 8 Crore was at Rs 2,84,79,750. With the proposed increase in the surcharge rate from 15 per cent to 37 per cent in the income category of more than Rs 5 Crore, the tax on the income of Rs 8 Crore comes out to be Rs 3,39,28,050 i.e. an increase of Rs 54,48,300.
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