Budget 2019: Huge Rebate To The Middle Class As Govt Announces No Tax For Income Up to Rs 5 Lakhs

| February 1 , 2019 , 13:27 IST

Finance Minister Piyush Goyal, presented Interim Budget in Lok Sabha on Friday. This is not just an Interim Budget, this is a vehicle for the developmental transformation of the nation, Goyal said.

He presented the Budget amidst a lot of hopes and expectations from across the spectrum of society right from the common people to industries.

In a huge sigh of relief to middle-class, Modi government announced big changes in income tax slab.

Finance Minister Piyush Goyal Friday proposed to double the threshold tax exemption limit to Rs 5 lakh and increased the standard deduction to Rs 50,000 from Rs 40,000.

Goyal said while unveiling the Budget proposals for 2019-20, individual taxpayers having annual income up to Rs 5 lakh will get a full tax rebate. 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.

The proposal will benefit 3 crore, middle-class taxpayers, he added.

Doubling the threshold exemption limit will increase the burden on the exchequer by Rs 18,500 crore.

ALSO READ: Farmers Boost Budget 2019: Small Farmers To Get Rs 6000/Year Direct Cash Transfer Support

If an individual invests in the specified tax saving schemes of the government, the effective tax-free income limit will be Rs 6.5 lakh a year, while it may go further up with additional avenues like NPS, medical insurance and home loan interest payment.