In the interim budget of F.Y. 2019-20, it is proposed to increase maximum amount of rebate from Rs. 2,500/- to Rs.12,500/- to resident individuals having net total income upto Rs. 5 lac.
Effectively, a resident individual having net total income of Rs. 5,00,000/- shall not be liable for any tax. Following example will help you understand how the enhancement of rebate will have effect on tax liability of an individual.
