Budget 2019: Axe all your income tax even if you earn Rs 12 lakh a year - Here is how
Most income taxpayers were seeking more tax exemptions, which in turn would have boosted savings, consumption and investment.
Union Finance Minister Nirmala Sitharaman on Friday presented the first Budget of the Modi government 2.0. This was also her first Budget after she took over as Finance Minister from Arun Jaitley who held the charge of the ministry in the last Narendra Modi government.
While middle-class income taxpayers were expecting some major relief, it did not come for them. However, the highest earners in the country will now have to pay additional surcharges on their income tax. She said the hike in surcharge was meant to increase the contribution of the highest earners to the nation's development.
Most income taxpayers were seeking more tax exemptions, which in turn would have boosted savings, consumption and investment. However, contrary to the expectations of the common man, the finance ministry did not tinker much with tax slabs and rates, barring an additional surcharge of 3% for people with taxable incomes between Rs 2 crore and Rs 5 crore, and 7% for those with incomes beyond Rs 5 crore.
She also proposed several tax sops for middle-income earners, which in turn would bring down their income tax. The Budget has provided for tax deductions for those buying homes under the affordable housing scheme.
There is also tax relief on interest paid on loans for electric vehicle (EV). Taking all this into account, an individual drawing a salary of up to Rs 12 lakh may not have to pay any tax if all exemptions are availed.
Here is how you can save your tax if you are earning less than Rs 12 lakh a year: