The Modi government has increased the limit of income tax in the interim budget 2019 from Rs 2.5 lakh to 5 lakh rupees. This is the second biggest bet of Modi Government after the general reservation before the Lok Sabha elections. However, people earning more than Rs 5 lakh will not be benefitted from this because the government has not made any changes to the tax slab. On tax relief to people having income of more than five lakh, Piyush Goyal said that it will be decided in the full budget.
In fact, according to the new announcement, relief was announced for the people of the profession. In this, people earning up to Rs 5 lakh will be tax free. There is no change in the tax slab i.e. the relief is still upto 2.5 lakhs for those earning more than 5 lakhs. But relief for those whose income is less than 5 lakhs is up to 5 lakhs. According to the current slab, income of up to Rs 2.5 lakhs was to be given 5 percent income tax. These rules will continue for those earning more than 5 lakhs. That is, those whose income is more than Rs. 5 lakhs, they will have to pay the tax as per the old tax slab.
How much will it be?(interim budget 2019)
Prior to the new announcement, 5 lakh rupees per person had to pay 5 percent income tax. If someone was earning more than two and a half lakh rupees, then he had to pay a tax of Rs 12,500. That is, now at least Rs 2.5 lakh to 5 lakh rupees are going to save at least Rs. 12 thousand rupees annually for those earning. Understand the math in the chart below. (Chart Credit: Deloitte)
Piyush Goyal said that the tax exemption would get 30 million middle class taxpayers. According to the new slab, those earning up to Rs 5 lakh will not have to pay any tax. While earning up to Rs 5 lakh to 10 lakh, income tax will be 20 percent. While 30 per cent tax will be charged from those earning more than 10 lakh. That is, the government has only eliminated the tax slab of 5 per cent.
See Seni Citizen’s exemption here (Chart Credit: Deloitte)
This is also the gift (interim budget 2019)
Apart from this, the limit of standard deduction brought in the previous budget has also been increased from Rs 40 thousand to 50 thousand rupees. Not only that, no TDS will be paid on interest income up to Rs 40000. In his budget speech, Piyush Goyal said that if you invest in provident funds and other equities, earning up to Rs 6.5 lakh, then there will be no tax.
Government achievement(interim budget 2019)
Apart from this, Piyush Goyal said in the budget speech, “The number of tax firms has increased by 80 percent. The tax collection increased to 12 lakh crore rupees. We have simplified the tax filing process, providing 24-hour income tax return processing facility, which took months before. There will no longer be an office for tax assessment.
Discount slab(interim budget 2019)
It is worth noting that earlier income tax exemption of income tax was up to two lakh rupees, which has now been increased. Prior to this announcement, there was no tax on the income earned up to Rs 2.5 lakh in the tax slab. While income of 2.5 to 5 lakh was taxed at the rate of 5 per cent. At the same time, 30 per cent tax on annual income of Rs 5-10 lakh and annual income of more than Rs 10 lakhs was taxed and it will still be recovered.
Piyush Goyal said that after filing, 10 million people filed the tax file for the first time. There is a tax of 1 lakh 36 thousand crores of taxation. In the last, Piyush Goyal said that this is not just an interim budget, the medium of development of the country is the medium of travel, the credit for which the country is changing is credited to the countrymen.
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