No tax for individual incomes up to Rs 5 lakh
In a bonanza for the countrys middle class in an election year, the government on Friday proposed tax exemption for individual annual incomes of Rs 5 lakh
New Delhi: In a bonanza for the country's middle class in an election year, the government on Friday proposed tax exemption for individual annual incomes of Rs 5 lakh.
Presenting the Interim Budget 2019-20, acting Finance Minister Piyush Goyal proposed doubling the standard deduction threshold for individual annual incomes from the current Rs 2.5 lakh to Rs 5 lakh.
* Individual taxpayers with annual income up to Rs 5 lakh will get full tax rebate.
* Around 3 crore middle class taxpayers will get tax exemption due to this measure.
* 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.
* Tax base up from 3.79 crore to 6.85 crore
* Standard tax deduction for salaried persons has been raised from Rs 40,000 to Rs 50,000.
* Tax deduction at source (TDS) threshold on interest on bank and post office deposits has been raised from Rs 10,000 to 40,000.