Tax exemption on the income of Rs.5 lakh
Piyush Goyal announced on Friday in the budget speech that the income tax exemption limit will be increased to Rs.5lakh per annum for the middle class in the year 2019-2020.
The Union Minister who is announcing the budget 2019 also said that the individuals with an annual income of Rs6.5 lakh will not have to pay any tax in providential funds and other equities. At present the tax exemption limit is Rs2.5 lakhs per annum but in the year 2091-2020 it will be 5 lakhs per annum.
Goyal in his interim budget speech in the Parliament said” The middle class individuals having an annual income of Rs5 lakh or less will get full tax rebate.” According to the sources and various reports this tax exemption will benefit all the middle class tax payers.
Along with the exemption of tax Goyal had other key announcements which majorly include
- TDS(Tax deducted at source) limit for rental income raised to Rs2.4lakh from Rs1.8lakh.
- Tax on SB Interest exemption raised from 10,000 to 40,000
- Tax exemption of interest of Rs.40,000 from bank deposits.
- Scheme for a monthly pension of Rs3000 for the workers who are above 60years and working in an unorganized sector.
The limit of ESI to be increased to Rs21,000 from Rs12,500.
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