New Delhi: Finance minister Piyush Goyal presented the sixth and hence, the interim budget of the Narendra Modi government on Friday. Giving a big relief to the taxpayers Finance Minister Piyush Goyal announced raising of tax exemption on income up to Rs 5 lakh per annum. Earlier, a 5 per cent tax was levied on such income. He said if the individual taxpayers makes investment of up to Rs 1.5 lakh in provident fund, the total exemption limit would be up to Rs 6.5 lakh per annum.
“Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate, finance minister Piyush Goyal announed during budget 2019,” Piyush Goyal said in a major announcement as people in Parliament cheered.
“So people earning up to Rs 6.5 lakh may not have to pay tax if they make investments in specified savings. This will provide tax benefit of Rs 18,500 crore to 3 crore people,” he added. Around 3 crore middle class taxpayers will get tax exemption due to this measure, the finance minster said.
TDS threshold on interest on bank and post office deposits raised from 10,000 to 40,000 rupees. TDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees, said Piyush Goyal at interim budget 2019.
“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. India became one common market with implementation of GST,” finance minister Goyal said.