Finance Minister Piyush Goyal handed over the salaried middle-class people the much anticipated relief in Income-tax slabs in the Union Budget 2019. Those having an annual income of Rs 5 lakh per annum will get full rebate in Income-tax, Piyush Goyal announced during his Budget speech on Friday.
The new income tax slab will benefit about three crore people in the salaried class.
New Income Tax Slabs — Tax Rate
Income up to Rs 5,00,000* — No tax
Income from Rs 5,00,000 – 10,00,000 – 20 per cent
Income more than Rs 10,00,000 – 30 per cent
Piyush Goyal also announced that people with gross income upto 6.5 lakh will not have to pay any tax if they make investment. Further, standard deduction has been raised from Rs 40,000 to Rs 50,000.
The government has also raised the TDS threshold on rental income from 1.8 lakh to 2.4 lakh. Apart from this, TDS threshold on interest on bank, post office deposit has been raised to 40,000.
Piyush Goyal said that more than 1.06 crore people filed Income-Tax returns for first time in 2017-18, the year after demonetisation.
No tax will be deducted on interest earned on bank and post office deposits of up to Rs 40,000 annually, up from Rs 10,000 currently.
The Budget also proposed to exempt tax on notional rent for unsold housing units for two years.
Piyush 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.
However, it can be exercised once in a lifetime, the finance minister added.
The Income Tax department will move towards faceless assessment and verification of returns, Piyush Goyal said.