On February 1, Finance Minister Piyush Goyal presented the Budget for the year 2019-20
Finance Minister Piyush Goyal on Friday doled out tax sops to middle class including doubling of income tax exemption limit to Rs 5 lakh and raising standard deduction to Rs 50,000, and provided concessions on interest income from bank deposits and rent.
"Individuals with income up to Rs 5 lakh will not be required to pay any tax," Goyal said while presenting Interim Budget for 2019-20 in Lok Sabha.He said with this, individuals who are earning gross income of Rs 6.5 lakh per year and have made investments in savings instruments, will be exempt from paying income tax."This will provide 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. No tax will be deducted on interest earned on bank and post office deposits of up to Rs 40,000 annually, up from Rs 10,000 currently.
The Budget also proposed to exempt tax on notional rent for unsold housing units for two years. Goyal also proposed that benefit of rollover of capital tax gains be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains of up to Rs 2 crore.
However, it can be exercised once in a lifetime, he added.The Income Tax department will move towards faceless assessment and verification of returns, Goyal said Friday. Standard deduction has been raised from Rs 40,000 to Rs 50,000 which will benefit three crore salaried individuals.
With agency inputs
1. Full tax rebate
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Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate
2. Tax exemption
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Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities.
Around 3 crore middle-class taxpayers will get tax exemption due to this measure
3. Standard tax deduction
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Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees
4. Rental income
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DS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees
5. Interest on bank and post office deposits
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TDS threshold on interest on bank and post office deposits raised from 10,000 to 40,000 rupees
6. FM on rollover of capital tax
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The benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 2 crore rupees; can be exercised once in a lifetime
7. Housing projects
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Benefits under Sec 80IBA of the Income Tax Act being extended for one more year, for all housing projects approved till the end of 2019-2020
