Govt announces tax exemption for income up to Rs 5 lk/yr

Individual tax payers with taxable annual income up to Rs 5 lakh will get full tax rebate.

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Union Finance Minister Piyush Goyal on Friday presented the interim Budget for 2019-20 in the Parliament. Announcing the budget Goyal said that individual taxpayers with annual income up to Rs 5 lakh will get full tax rebate. An estimate of 30 million middle-class taxpayers will get tax exemption due to this measure, informed the Finance Minister.

It should be noted that earlier the limit was Rs 2.5 lakh for income tax exemption.

“Individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities,” said Goyal.

Also standard tax deduction has been raised from Rs 40,000 to Rs 50,000 for salaried persons. Further the Tax deduction at source (TDS) threshold on interest has been raised from Rs 10,000 to Rs 40,000 on bank and post office deposits. Also the TDS threshold has been raised from Rs 1.8 lakh to Rs 2.4 lakh on annual rental income.

Finance Minister thanks taxpayers and said, “On behalf of all the people of India and our Government, thank all our taxpayers for their valuable contribution to nation-building and for providing a better quality of life to poor and marginalised.”

For more key highlights of the budget click here.

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