Budget 2019: No tax on income upto Rs 5 lakh, no notional rent on 2nd home
New Delhi : Good news for middle income tax payers. Prime Minister Narendra Modi and Finance Minister Piyush Goyal's mission of bringing a revolutionary change in India by 2030 seems to be taking a true path. Mr. Goyal, today in union budget 2019, has doubled income tax exemption limit to Rs 5 lakh.
Take a look at the major positive changes brought forward to the middle class.
- FM Goyal announces tax rebate and increase in standard deduction.
- No tax on notional rent on second self-occupied house and no tds on house rent up to Rs 2.4 lakh
- FM raises standard deduction raised from Rs 40,000 to Rs 50,000.
- Tax on SB Interest exemption raised from 10,000 to 40,000
- Those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have to pay no tax.
“It is a populist/election Budget given ensuing general elections in the country. “No major tax relief except income tax relief for small tax payers, exempting income up to Rs 6.5 lakhs (with Rs 1.5 lakh section 80C tax free investment limit) fully from from tax,” said Sanjay Sanghvi, Tax Partner.
Earlier, analysts had warned that any crucial tinkering with the income-tax rates or provisions before the release of a report on Direct Tax Code scheduled for February 28, may raise controversies for the government.
Announcement of ‘e- tax assessment’ without any interface with tax administration, is a significant initiative which will save lots of hardship to taxpayers, he added.
