Giving a big boost to the middle class, Finance Minister Piyush Goyal on Friday doubled income tax exemption limit to Rs 5 lakh. FM Goyal announced full tax rebate for income up to Rs 5 lakh in Budget 2019.
Cheer for middle income tax payers. 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
So, 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. Will benefit nearly 3 crore middle class income earners.
Analysts had earlier warned that any major tinkering with the income-tax rates or provisions before the release of a report on Direct Tax Code scheduled for February 28 would lead to avoidable controversies for the government.