A pleasant surprise for the middle-class society - IT exemption limit increased to Rs. 5 Lakhs per annum
Posted on: 01/Feb/2019 4:37:55 PM
The central government has provided a pleasant surprise indeed for the monthly-salaried class and the middle-class society by raising the taxable limit of annual income from Rs. 2.5 to Rs. 5 Lakhs.
The BJP ruled central government presented its last and interim budget under its governance today (Friday, 1st February). Interim Finance Minister Piyush Goyal presented this interim budget.
As soon as it assumed power, the ruling BJP increased the non-taxable income limit from Rs. 2 Lakhs to Rs. 2.5 Lakhs per year.
Subsequently, during the next 4 years, the middle-class society as well as monthly salary earning class expected every year that the non-taxable income limit will be increased. However, there have been no such announcements in the last 4 years.
With the impending parliamentary election scheduled shortly, it was keenly expected that during the presentation of the interim budget (the last one by BJP in its current tenure) plenary of concessions would be given to the middle-class society, the poor society, and the agriculturists.
Accordingly, meeting the above expectations, the interim central finance minister Piyush Goyal, while at end of his presentation address of the budget, made the pleasant surprising announcement for the middle-class society. Thus, the non-taxable annual income limit has been increased from Rs. 2.5 Lakhs to Rs. 5 Lakhs in a bold initiative. With this, all those who earn less than Rs. 5 Lakhs as annual income do not need to pay any income tax!
Income Tax concession has also been accorded to the individuals who earn an annual income of up to Rs. 6.5 Lakhs. In other words, if the people with this income of below Rs. 6.5 Lakhs annual income have invested in Provident Fund, Stock/shares investment, and mutual funds, they also need not pay any Income Tax.
Until now, the amount of permanent discount deducted before tax calculations remained Rs. 40000. Now, this has been increased to Rs. 50000.
A permanent deduction of up to Rs. 10000 was accorded for those who had deposits in the Post Office and those who earn an annual interest from the deposits in the banks. Now, this has been increased to Rs. 50000.
The discount under the category 80C has now been increased to Rs. 50000. A concession of Rs. 2 Lakhs has been given for the people who pay Rs. 1.5 Lakhs per year as a housing loan.
The IT concession obtained from payment of house rent has been increased from Rs. 1.80 Lakhs to Rs. 2.40 Lakhs.
With the above announcements, 3 Crores people belonging to the middle-income group paying income tax will benefit and avail these concessions to reduce the income tax they need to pay.
