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 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. Also Read - 7th Pay Commission Latest News: Karnataka Govt Employees to Get 4.75% DA Hike Ahead of Diwali
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. Also Read - Direct Tax Target Realistic, Achievable: Revenue Secretary Ajay Bhushan Pandey
|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.” Also Read - Budget Impact: FIIs Sell Nearly Rs 3,000 Crore Shares in 6 Sessions
Claiming that impactful steps have been taken in reducing tax and bringing benefits for middle class citizens, Goyal said 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.
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.