Just like clinching victory in the last over of the match, Piyush Goyal, presenting his maiden Budget, made an announcement that is bound to cockle the hearts of middle-class salaried citizens.
Interim Finance Minister Piyush Goyal has given some relief to the income taxpayers.
The Union Budget 2019 has been proposed with an extension for the basic tax exemption limit and pushing it to Rs 5 lakhs. Earlier this limit was set at Rs 2.5 lakhs. Here’s some quicklime of further benefits announced in the Budget 2019 for the taxpayers:
- If one invests Rs 1.5 lakh under section 80C, then one need not pay any tax up to a yearly income of Rs 6.5 lakhs and if salaried then up to 7 lakhs as 50,000 additional standard deductions are provided to salaried people.
- The standard deduction amount has been increased from Rs 40,000 to Rs 50,000.
- Exemption on tax on the second self-occupied house has been proposed.
- Ceiling Limit of TDS u/s 194A has increased from Rs 10,000 to Rs 40,000. Ceiling Limit of TDS u/s 194I has increased from 1,80,000 to 2,40,000.
- The Capital tax Benefit u/s 54 has been increased further from making an investment in one residential house to two residential houses.
- Benefit u/s 80IB has increased to one more year i.e. 2020.
- A hike to the gratuity taxable limit has been proposed to Rs 30 lakhs which was earlier set at Rs 10 lakhs.
The major and dynamic point of the budget is checking and processing of the income returns & the scrutiny. All returns to be processed within 24 hours and refund simultaneously shall soon be a reality. All assessments will be conducted in an anonymous manner through a back office. Without interaction between taxpayer and tax officer.FM says no human interference in tax verification & scrutiny will be a reality within 2 years.
At last, it was not a vote on account. It was an account for votes. The budget doesn’t give any huge relaxation and in concern of benefit to the taxpayers. Some kind of relaxation is shown for the middle case taxpayers. It is an ‘out for election’ budget. Biggest ever income tax gimmick.
Conclusively now if you have a taxable income of Rs 5,00,000 then you need not pay any taxes but if your taxable income is Rs 5,00,00 then you pay on the approximate tax of Rs 12500/-