Ahead of the budget, speculation had been rife that the government would be announcing a slew of measures including a direct income transfer scheme for farmers, potentially as a pilot project, to counter the farm loan waiver promised by Congress president Rahul Gandhi. The government presented a scheme for farmers where the farmers will be provided with Rs 6,000 per year under the Kisan Samman Nish. Piyush Goyal also announced that all interest income above Rs 40,000 from bank deposits will now get taxed as against the earlier Rs 10,000. The salaried class people or those earning up to Rs 5 lakh are now not required to pay income tax.
Goyal also proposed that benefit of rollover of capital tax gains be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains of up to Rs 2 crore.
The proposal will benefit 30 million middle-class taxpayers, Goyal said.
Finance Minister Piyush Goyal on Friday proposed to increase income tax exception limit to Rs 5 lakh. So, only those whose total income does not exceed Rs 5 lakh will be eligible for the benefit.
Talking about exemption from taxation, PM Modi said that there has always been a demand to exempt those with annual income up to Rs 5 lakh and Modi government fulfilled it.
The interim finance minister also announced a Mega Pension Yojana, namely Pradhan Mantri Shram Yogi Mandhan (PMSYM), to provide assured monthly pension of Rs 3000 per month, with contribution of Rs 100 rupees per month, for workers in unorganised sector after 60 years of age.
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All those earning up to Rs 5 lakh a year will now receive a full tax rebate.
For those, he said, whose return of income or taxable return is more than Rs 5 lakh, the old slab of tax rates will continue.
Budget 2019 jokes and memes have taken over Twitter.
The tax proposals have evinced mixed reaction from tax experts.
Further, standard deduction has been raised from Rs 40,000 to Rs 50,000, which will benefit 30 million salaried individuals.