Govt presents Interim Budget 2019-20, I-T exemption limit raised to Rs 5 lakh

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New Delhi : Interim Budget 2019-20 was presented in Parliament on February 1, 2019, by Union Minister for Finance, Corporate Affairs, Railways & Coal,  Piyush Goyal. Besides having a major scheme for the farmers, it provides tax sops and sets the developmental agenda for the years to come.

A new deal for 12 crore Small and Marginal farmers with direct income support, a path breaking pension initiative for 10 crore unorganized sector workers, exempting income up to Rs 5 lakh from Income Tax, reforms in stamp duty, highest ever budgetary allocation of Rs 3 lakh crore for Defence, record allocation of funds at Rs 58,166 crore for North Eastern Areas, a new AIIMS for Haryana, single window clearance for Indian film makers at par with foreigners and higher budgetary allocations for Education, Health, Infrastructure and for the welfare of weaker sections including Scheduled Castes and Scheduled Tribes, a separate department of Fisheries for welfare of 1.5 crore fisherman are some of the major highlights of the Interim Budget 2019-20.

Individual taxpayers having taxable annual income up to Rs 5 lakh will not be required to pay any income tax. The Finance Minister said that persons having gross income up to Rs 6.50 lakh are not required to pay any income tax if they make investments in provident funds, specified savings and insurance etc. Additional deductions such as interest on home loan up to Rs 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance and medical expenditure on senior citizens etc, are also provided for in the Interim Budget 2019-20. Thus tax benefit of Rs 18,500 crore is proposed to be provided to an estimated 3 crore middle class and small taxpayers comprising self employed, small business, small traders, salary earners, pensioners and senior citizens.

For salaried persons, Standard Deduction is being raised from the current Rs 40,000 to Rs 50,000. This will provide additional tax benefit of Rs 4,700 crore to more than 3 crore salary earners and pensioners.

Exemption on levy of income tax on notional rent on a second self-occupied house is also now proposed. Currently, income tax on notional rent is payable if one has more than one self-occupied house.

TDS threshold on interest earned on bank/post office deposits is being raised from Rs 10,000 to Rs 40,000. TDS threshold for deduction of tax on rent is proposed to be increased from Rs 1,80,000 to Rs 2,40,000 for providing relief to small taxpayers.

The Finance Minister said that the Government wants the GST burden on home buyers to be reduced and accordingly the GST Council was moved to appoint a Group of Ministers to examine and make recommendations in this regard at the earliest. Goyal said that soon, businesses comprising over 90% of GST payers will be allowed to file quarterly return, according to a PIB release.