In the Budget for 20019, the Indian government has chosen to keep the existing income tax slabs unchanged.
However, the government has introduced a tax rebate of Rs 12,500 to make the effective tax ZERO for those having taxable income up to Rs 5 lakh. In the tax slab of Rs 2.5 Lakh – Rs 5 Lakh, the existing income tax rate is 5%, which is Rs 12,500 as tax liability. With the tax rebate, the net tax payable is ZERO.
One must note that the tax rebate is applicable for those having a net taxable income of Rs 5 Lakh only. If your taxable income is more than Rs 5 Lakh, you do not get the tax rebate, and still pay it. No tax rebate for those with higher taxable income.
For salaried persons, the Standard Deduction is being raised from the current Rs 40,000 to Rs 50,000. This will provide additional tax benefit to salary earners and pensioners.
From India Union Budget 2019 speech:
Individual taxpayers having taxable annual income up to Rs 5 lakh will get full tax rebate and, therefore, will not be required to pay any income tax. As a result, even persons having gross income up to Rs 6.50 lakh may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc. In fact, with additional deductions such as interest on home loan up to Rs 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens, etc, persons having even higher income will not have to pay any tax.