Union Budget is merely a few days away. Not only have various industry bodies conveyed their expectations from the budget to the Finance Ministry, the Finance Ministry has already held its Halwa ceremony, which is the ceremony that marks the commencement of the printing of Budget documents for the upcoming Union Budget.



While the Union Budget seems like a lot of complex financial mumbo jumbo, it has a lot of important details for the common man. The two most important takeaways from the Union Budget for a common man are:

Tax slabs

Every resident Indian as well as NRI must pay tax to the country. Different tax rates are levied for individuals of different income level and our tax slabs are progressive in nature, which means that the tax rates increase with increase in income levels.

The current tax slabs for individuals in India are:


Please note, the tax rates vary according to an individual’s age as well. Thus, tax rates are different for senior as well as super-senior citizens.



Senior citizens for the government of India are Indian residents between 60 and 80 years of age. The tax slabs applicable to them are:




Super-senior citizens for the government of India are Indian residents between 60 and 80 years of age. The tax slabs applicable to them are:



Increase in Section 80C deduction limit

Section 80C is a part of the Income Tax Act, 1961, that allows Indian citizens to lower their taxable outgo by decreasing their taxable income by investing in a few government-defined citizens.

By investing in instruments that fall under the Section 80C, one can reduce his/her taxable income by maximum Rs. 1,50,000 per financial year. Thus, Section 80C provides citizens of the country with tax relief of up to Rs. 1,50,000 lakh. Speculations were rife that the government might increase the Section 80C deduction limit from Rs. 1,50,000 to Rs. 2,00,000 in last year’s Union Budget. However, the government didn’t make any such announcement.

Hence, expectations are higher this year of an increase in Section 80C deduction limit. Thus, from a common man’s point of view, these are the two most important changes one can look forward to.

Here’s hoping everyone has a good Budget 2019-20!