New Delhi: Finance Minister Piyush Goyal on Friday, while presenting the Interim Budget 2019-20 in Lok Sabha during Budget Session of Parliament, announced full tax rebate for people earning up to Rs 5 lakh. He also said that almost all assessment and verification of Income Tax returns will be done electronically by an anonymised tax system without any intervention by officials. At least two years will be required for the implementation of the same, he added. (Live Updates on Budget 2019)
Adding further, he announced that the 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. The measure would benefit around 3 crore middle class taxpayers.
|Income Tax Slabs||Tax Rate (2018-19)||Tax Rate (2019-20)|
|Income up to Rs 2,50,000*||No tax||No Tax|
|Income from Rs 2,50,000 – Rs 5,00,000||5%||No Tax|
|Income from Rs 5,00,000 – 10,00,000||20%||20%|
|Income more than Rs 10,00,000||30%||30%|
Before the announcement, Goyal thanked the taxpayers. He 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.”
The Finance Minister also announced that the benefits under Sec 80(i)BA are being extended for one more year, for all housing projects approved till end of 2019-2020. “TDS threshold on rental income raised from Rs 1.8 lakh to Rs 2.4 lakh,” he further announced.
Goyal also claimed that impactful steps have been taken in reducing tax and bringing benefits for middle class citizens. He said informed the Lok Sabha that there has been an 18% increase in direct tax collections in 2017-18, while 1.06 crore people have been included in tax base. He added that over 1 crore citizens filed IT returns for the first time, after demonetisation.
Besides, he also announced that the gratuity amount for the government employees has been increased from Rs 10 lakh to Rs 20 lakh. Furthermore, he announced a Mega Pension Yojana, namely Pradhan Mantri Shram Yogi Mandhan (PMSYM), to provide assured monthly pension of Rs 3000 per month, with contribution of Rs 100 rupees per month, for workers in unorganised sector after 60 years of age.
The Interim Finance Minister, who is presenting the Budget 2019 in place of Arun Jaitley, also lauded the government for implementing the recommendations of 7th Pay Commission and providing the benefits of the same to the Central government employees. He said that their minimum pay has been increased by up to Rs 21,000.