Budget 2019: Big relief for aam aadmi! FM Goyal gives tax rebate on income up to Rs 5 lakh

Interim Finance Minister Piyush Goyal has given some relief to the income taxpayers. Union Budget 2019 has proposed to offer a tax rebate for individuals earning up to Rs 500,000. The rebate under Section 87A of the Income Tax Act has been enhanced to Rs 12,500 from Rs 2,500 earlier. The threshold has also been enhanced to income of Rs 5 lakh from Rs 3.5 lakh earlier. This will benefit taxpayers only to the extent of an annual income of Rs 5 lakh. The basic exemption limit and tax-slabs remain the same.

The last time basic exemption limit was raised by Rs 50,000 by Finance Minister Arun Jaitley while presenting Budget 2014. At that the time, the tax rates were left untouched.

Last year while presenting Budget 2018, Finance Minister Arun Jaitley had re-introduced the standard deduction of Rs 40,000 in lieu of medical reimbursement and transport allowance. It was done with the intention to reduce administrative hassles for salaried individuals. In budget 2019, standard deduction too has been enhanced to Rs 50,000. The increase in basic exemption limit benefits all income taxpayers.

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