Budget 2019: Govt hikes allocation by ₹5000 crore for rural employment scheme

James Marshall
February 2, 2019

In a major boost to the salaried class, interim Finance Minister Piyush Goyal announced during the Interim Budget that all those earning up to Rs 5 lakh a year will not have to pay income tax. Additionally, Piyush Goyal also announced that those having a gross income of up to Rs 6.5 lakh a year can get full tax rebate if they make investments in provident funds and other similar investments.

"All interest income above Rs 40,000 from bank deposits will now get taxed, and not Rs 10,000". Under the current norms, they are required to seek a refund on tax deducted on interest income beyond Rs 10,000 per annum.

The Income Tax department will move towards faceless assessment and verification of returns, Goyal said Friday.

Rahul's comments came after the budget was announced by the Modi-government. Income from Rs 3 lakh to Rs 5 lakh is taxed at 5 per cent, and an income from Rs 5 lakh to Rs 10 lakh at 20 per cent and above Rs 10 lakh at 30 per cent. There will be no tax on notional rent on second self-occupied house and no TDS on house rent up to Rs 2.4 lakh, " said Goyal.

Let's look at five big announcements made in the Budget 2019. This initiative is likely to benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore.

However, there has been no increase in the threshold limit of Rs 2.5 lakh. The eligibility of the total income to avail the benefit has now been increased Rs 5 lakh from the earlier from Rs 3.5 lakh.

About three crore taxpayers will be benefitted from this enhanced standard deduction and revenue forgone for this will be about Rs 4,700 crore, he said.

Shalini Jain, Partner, EY India: "Anyone with net taxable income up to Rs 5 lakh will not be paying any taxes". The standard deduction limit has also been increased to Rs 50,000.

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