The Finance minister Piyush Goyal of the Modi led NDA government announced interim budget for the year 2019-2020. The much hyped budget was speculated to be a populous election budget, sighting general elections are scheduled after few months.
The finance minister giving big relief to middle class, increased the base of income tax to INR 5 lakh for individuals taxpayers i.e income for individual taxpayers are exempted till INR 5 lakh. With this, there is a 100% increase in the base tax exemption of individual taxpayers. Income of upto INR 2.5 lakh is exempted for the year 2018-2019 while upto INR 5 lakh for the financial year 2019-2020.
Standard deduction increased to Rs 50,000 from Rs 40,000 for salaried class.
Tax exemptions on investments after Interim budget of 2019:
Read here the major benefits of budget 2019 by finance minister Piyush Goyal.
Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make
investments in provident funds and prescribed equities.
TDS threshold for home rent increased from Rs 1.8 lakh to 2.4 lakh
Interest income up to Rs 40,000 in post offices and banks are made tax free
Capital gains tax exemptions under Section 54 to be available to Rs 2 crore.
Capital gains exemption to be available on 2 house properties
Income tax relief on notional rent from unsold houses extended to 2 years from 1 year.