Published: Sat, February 02, 2019
Industry | By Jeannie Evans

Viewpoint: Not just an interim Budget

Viewpoint: Not just an interim Budget

Finance Minister Piyush Goyal on Friday presented the Interim Budget 2019-20 in Lok Sabha during Budget Session of Parliament. "But now PM Kisan Samman Nidhi scheme will benefit over 12 crore farmers who own 5 acres or less than 5 acres of land", Modi added. The salaried class people or those earning up to Rs 5 lakh are now not required to pay income tax.

These sops, combined with the other goodies announced, mean that anyone earning up to Rs 10 lakh can walk away with Rs 0 tax payable if they just plan smartly. The government has announced a rebate under Section 87A of the Income Tax Act, which has been hiked to Rs 12,500 from the earlier rebate of Rs 2,500.

Finance Minister Piyush Goyal on Friday proposed to increase income tax exception limit to Rs 5 lakh. The benefit of roll-over of capital gains has been proposed to be increased from investment in one residential house to two residential houses for a taxpayer having capital gains up to ₹2 crore. So, only those whose total income does not exceed Rs 5 lakh will be eligible for the benefit.

For senior citizens aged 80 years and above, income up to Rs 5 lakh was exempt from tax.

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.

There will also be no tax on notional rent on the second self-occupied house and no TDS on house rent up to Rs 2.4 lakh.

Standard deduction on personal income tax for salaried people to Rs 50,000 from Rs 40,000. The government on Wednesday made it clear that the budget will be called an Interim Budget 2019-20 after media reports described the coming exercise as a General Budget. ₹ 19,000 Crore has also been allocated towards rural road infrastructure for 2018-19, up 26 per cent over last year's ₹ 15,000 Crore allocation.

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