Minister of Finance Piyush Goyal said on Friday that taxpayers up to 5 lakh of annual income will have complete tax discounts. Taxes have not changed, however.
The people whose gross income is between 5 lakhs to 6.5 lakhs or more should pay the same amount of tax as they used to pay before.
Goyal started the Budget proposals stating that around three crore middle-class taxpayers receive a tax exemption.
Goyal said that the standard tax deduction is increased to Rs 50,000 for wages from Rs. 40,000, while the TDS interest threshold is raised from Rs 10,000 to Rs 40,000 for deposits in banks or post offices.
Piyush Goyal stated that, in the next financial year, beginning on 1 April 2019, there is a 20% current tax burden between Rs 5-10 lakhs and 30 percent for the income above Rs 10 lakhs.
The exemption from paying tax is for senior citizens 60 or older but under 80 years of age with a payment income up to Rs 3 lakh. However, income from Rs 300,001 to Rs 5 lakh is taxed 5%. In the case of income from Rs 500,001 to Rs 10 lakh, 20% will be imposed, while the income from Rs 10 lakh higher will be imposed at 30%.
Several factors are taken into consideration during income tax determination.
Before, the upcoming elections it was expected that the present government announces some good things for the welfare of the citizens.
This was one such announcement. Though this was specifically for the middle-class people the higher class people will not have any effect of it.
In the end, yes the slab has been increased to 5 lakhs but there is no change in the tax above 5 lakhs. So if you are someone whose annual income is above 5 lakhs per annum then this is not useful for you.