No Income Tax On Individuals With Income Up To Rs 5 lakh In Budget 2019

NEW DELHI: The Budget 2019 will be presented by Union Minister for Railways Piyush Goyal in the absence of Finance Minister Arun Jaitley who has gone to the United States for treatment.

Finance Minister Piyush Goyal announced today in his Interim Budget 2019 speech that there would be no tax till Rs 5 lakh income for individuals taxpayers.

“Around 3 crore middle-class taxpayers will get tax exemption due to this measure,” said Piyush Goyal.

So those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have to pay no tax. Will benefit nearly Rs 3 crore middle class income earners.

In his speech in Lok Sabha, finance minister Piyush Goyal announced annual support of Rs 6000 per year for farmers holding land below 2 hectares.

Moreover, for many people, the current 80C limit quickly gets exhausted through expenses like tuition fees, provident fund contributions and payments made against home loan principal.

Currently, individuals earning between Rs 2.5 lakh and Rs 5 lakh are required to pay 5% tax along with cess, while those in the Rs 5-10 lakh bracket have to pay 20% and the tax rate for incomes over Rs 10 lakh is 30%.

The standard deduction for salaried persons has also been raised from Rs 40,000 to Rs 50,000.TDS threshold on interest on bank and post office deposits has also been raised from 10,000 to 40,000 rupees.

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