Mega Tax Relief: No tax on income up to Rs 5 lakh

February 1: Ahead of the Lok Sabha polls of 2019, the Modi Government has come up with huge benefits for the salaried class. Finance Minister Piyush Goyal proposed an increase in the income tax exemption limit to ₹5 lakh per year in the 2019-20 interim budget. He also proposed increase in the standard deduction limit to ₹50,000, from ₹40,000. At present, income up to ₹2.5 lakh is exempt from personal income tax. Measures for the salaried class will be effective April 1, 2019.

This probably the best way to gain back trust of the voters. The revenue loss from the change in income taxes will be roughly Rs 24,000 crore. The main highlights of the budget which came as a boon for the middle class are:

• No tax on income upto Rs. 5 lakh
• Increase in the standard deduction limit to ₹50,000, from ₹40,000.
• No tax on notional rent on 2nd house
• No tax on rental income upto Rs. 2.5 lakh
• Individual with income upto Rs. 6.5 lakh may need not pay tax if they made investment in provident funds and prescribed equities.