Published: Sat, February 02, 2019
IT | By Emmett Cole

Budget 2019: 'Interim Budget just trailer for India's development,' says PM Modi

Budget 2019: 'Interim Budget just trailer for India's development,' says PM Modi

In his budget speech, Finance Minister Piyush Goyal announced the PM Kisan Samman Nidhi.

A person who earns up to Rs 6.5 lakh per annum can effectively bring down the next taxable income to Rs 5 lakh with proper investments and escape paying any tax, according to experts.

No tax will be deducted on interest earned on bank and post office deposits of up to Rs 40,000 annually, up from Rs 10,000 now.

As per the current tax slabs, those earning between Rs 2.5-5 lakh a year had to pay 5% Income Tax, Rs 5-10 lakh a year at 20% and over Rs 10 Lakh a year at 30%. Chandra added that the proposal of giving rebate in income tax to people earning up to Rs 5 lakh will benefit another three crore people and the revue forgone would be Rs 18,500 crore.

No income tax on taxpayers earning up to Rs 5 lakh, from Rs 2.5 lakh now. So, only those whose total income does not exceed Rs 5 lakh will be eligible for the benefit. No tax on notional rent on second house.

The minister said that the direct tax collection has increased to Rs12 lakh crore in the 2018-19 financial year from Rs 6.38 lakh crore in 2013-14.

Budget 2019 jokes and memes have taken over Twitter. "As per the present taxation rate, the tax liability up to Rs 5 lakh is Rs 12,500".

Goyal also announced an increase in the standard deduction, which provide for employee expenses, from Rs 40,000 to Rs 50,000.

Pension scheme for unorganised sector workers for monthly income up to Rs 15,000. The benefit of roll-over of capital gains has been proposed to be increased from investment in one residential house to two residential houses for a taxpayer having capital gains up to ₹2 crore. So, we will give a rebate of Rs 12,500 straight so that everyone who is filing a return up to Rs 5 lakh of net income will absolutely be a tax exempt case.

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