New Delhi: At a time when the Central government is taking a number of steps to revive the ailing economy and to make India a better business destination for foreign investors, Union Minister of State for Finance Anurag Thakur on Thursday said something that will please the taxpayers the most. He said the Centre will take a decision on raising the income tax exemption limit at an appropriate time.
After the announcement of the government on slashing the corporate tax rate last week, there were reports that the government may consider raising the income tax exemption limit to push demand and consumption with a view to fuel economy.
“When the time arises to take a call on it (income tax relief), the government will do so. The government in the past has also increased (the limit) from Rs 2.5 lakh to Rs 5 lakh. In future, whenever the time arises, we will look into the matter,” he was quoted as saying by PTI.
While presenting the interim Budget 2019, Union Minister Piyush Goyal had said that the government has raised the income tax exemption from Rs2.5 lakh to Rs 5 lakh for the benefit of tax payers. The government on February 1 raised individual Income Tax exemption limit to Rs 5 lakh per annum.
According to the budget 2019, the exemption limit will go up to Rs 6.5 lakh per annum if a salaried person invests in specified savings, like Provident Fund. It will benefit around 3 crore small salary earners and pensioners.
“The exemption limit will go up further when exemptions on aspects like home loan and medical insurance are considered,” Goyal had said.
He had said that there will be no TDS for interest up to Rs 40,000. This will benefit small depositors and small earners.
He had said that the Income Tax Department is now functioning online for filing ITR and other things such as I-T assessments, refunds and other queries.
Union Minister Nirmala Sitharaman during her maiden Union Budget 2019 presentation also kept the income tax exemption unchanged for the benefit of tax payers.
Meanwhile, according to another update, the Central Board of Direct Taxes (CBDT) has on Thursday said in a notification that it has extended the due date for filing of ITRs & Tax Audit Reports from 30th September to 31st October, in respect of persons whose accounts are required to be audited.
(With inputs from agencies)