Income tax is a direct tax and is applied at different rates on different levels of income.Currently, there are four tax slabs and four different income tax slabs rates and no change has been made in the slab rates in the Budget 2019.

On taxable income up to Rs 2.5 lakh, zero per cent tax rate is applied.

On taxable income between Rs 2.5 lakh and Rs 5 lakh, 5 per cent tax rate is applied.

On taxable income between Rs 5 lakh and Rs 10 lakh, 20 per cent tax rate is applied

On taxable income over Rs 10 lakh, 30 per cent tax rate is applied.

• Budget 2019 proposed to increase the surcharge on individuals having income between 2-5 crore to 3 per cent, and 7 per cent for those with income exceeding Rs 7 crore.
• Proposed full tax rebate for individuals with net taxable income up to Rs 5 lakh.
• Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore.
• Proposed the introduction of “Faceless Assessment“, which means that there will be no human intervention while scrutinising the tax return. The aim of a faceless assessment is to cut down the interaction between taxpayer and income tax officer. Faceless assessment or scrutiny means that the assessing officer will not know the identity of the tax payer.
• Proposed to levy TDS of 2% on the cash withdrawal over Rs 1 crore a year from bank accounts.
• The extended benefit for home loans will be available for home loans till March 2020.
• Aadhaar card and PAN Card will be interchangeable for the process of filing income tax returns.
• Extended the benefit of Rs 1.5 lakh for home loans, making it Rs 3.5 lakh from the existing Rs 2 lakh, This has been done to encourage affordable housing for.
• Announces Rs 1.5 lakh tax subsidy to tax payers taking loans to buy electric vehicles.