Union Budget 2019: Five new measures you need to know

Union Budget 2019: Five new measures you need to know

Union Minister Piyush Goyal will present the Interim Budget 2019 in the Lok Sabha on Friday in absence of Finance Minister Arun Jaitley who is in the U.S. for medical treatment. Those earning upto Rs 6,50,000 will not need to pay tax if they invest in specific schemes such as the Public Provident Fund and prescribed equities. Piyush Goyal also announced that all interest income above Rs 40,000 from bank deposits will now get taxed as against the earlier Rs 10,000. Under the current norms, they are required to seek a refund on tax deducted on interest income beyond Rs 10,000 per annum.

Defence budget at Rs 3 lakh crore, an increase of Rs 5,000 crore over previous year.

Middle class gets huge tax rebates Individual taxpayers having annual income up to Rs 5 lakh will get a full tax rebate. This initiative is likely to benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore.

For senior citizens (aged 60 years or above but less than 80 years), income up to Rs 3 lakh comes free of tax.

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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. So, we will give a rebate of Rs 12,500 straight so that everyone who is filing a return up to Rs 5 lakh of net income will absolutely be a tax exempt case.

This could benefit as many as 30 million taxpayers, the minister said, adding that those earning more will be taxed at the prevailing rates.

Further, standard deduction has been raised from Rs 40,000 to Rs 50,000, which will benefit 30 million salaried individuals. 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. This was introduced a year ago after being abolished in the Finance Act 2005.

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