Interim budget FY20: Middle-income earners welcome IT relief

Interim budget FY20: Middle-income earners welcome IT relief

Interim budget FY20: Middle-income earners welcome IT relief

Individuals having annual taxable income of up to Rs 5 lakh will not have to pay any income tax, said Finance Minister Piyush Goyal on Friday in his Interim Budget 2019 speech. Those earning upto Rs 6,50,000 will not need to pay tax if they invest in specific schemes such as the Public Provident Fund and prescribed equities.

Interest income earned up to Rs 40,000 will not attract any tax, Goyal said.

The existing income-tax slabs for individuals below 60 years are: up to Rs 2.5 lakh, no tax; Rs 2.5 lakh to Rs 5 lakh, 5 per cent; Rs 5 lakh to Rs 10 lakh, 20 per cent; and above Rs 10 lakh, 30 per cent.

The tax Deducted at Source (TDS) threshold has been increased to Rs 40,000 from Rs 10,000. For people earning more than Rs 5 lakh annually, the "old" tax rates will continue.

The minister said that the direct tax collection has increased to Rs12 lakh crore in the 2018-19 financial year from Rs 6.38 lakh crore in 2013-14.

"This will provide the benefit of Rs 18,500 crore rpt crore to 3 crore middle-class taxpayers self-employed, senior citizens", he said, adding the number of beneficiaries will go up for those who have made investments in mediclaim and pension. However, resident taxpayers with income up to ₹5,00,000 will get a full tax rebate. So, we will give a rebate of Rs 12,500 straight so that everyone who is filing a return up to Rs 5 lakh of net income will absolutely be a tax exempt case.

The Budget also proposed to exempt tax on notional rent for unsold housing units for two years.

The Indian automobile industry was watching the Interim Budget 2019 with great interest.

With an eye on upcoming general elections, he also proposed to raise the standard deduction to Rs 50,000. This was introduced a year ago after being abolished in the Finance Act 2005.

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