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Last Updated : Jun 27, 2019 09:12 AM IST | Source: Moneycontrol.com

A look at the changes Modi government made in the direct tax regime in the previous budgets

In its very first budget, the Modi govt increased the personal income tax exemption limit from Rs 2 lakh to Rs 2.5 lakh in the case of taxpayers below the age of 60 years.

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In its vey first budget, the Modi govt increased the personal income tax exemption limit from Rs 2 lakh to Rs 2.5 lakh in the case of individual taxpayers who are below the age of 60 years. The investment limit under section 80C of the Income-tax Act was also raised from 1 lakh to Rs 1.5 lakh Net Effect of the direct tax proposals was revenue loss of Rs 22,200 crore.
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2014 | In its very first budget, the Modi govt increased personal income tax exemption limit from Rs 2 lakh to Rs 2.5 lakh in the case of taxpayers below the age of 60 years. The investment limit under section 80C of the Income-tax Act was also raised from 1 lakh to Rs 1.5 lakh. Net Effect of the direct tax proposals was a revenue loss of Rs 22,200 crore. (Image: Reuters)

The limit of deduction in respect of health insurance premium was increased from 15,000 to 25,000. The limit on deduction on account of contribution to a Pension Fund and New Pension Scheme was increased from 1 lakh to 1.5 lakh. Direct tax proposals would result in revenue loss of `8,315 crore
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2015 | The limit of deduction in respect of health insurance premium was increased from Rs 15,000 to Rs 25,000. The limit on deduction on account of contribution to a Pension Fund and New Pension Scheme was increased from Rs 1 lakh to Rs 1.5 lakh. The direct tax proposals resulted in a revenue loss of Rs 8,315 crore

For two crore tax payers with income less than Rs 5 lakh, the ceiling of tax rebate under section 87A was raised from Rs 2,000 to Rs 5,000. The limit of deduction for rent paid under section 80GG was increased from Rs 24,000 per annum to Rs 60,000 per annum.
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2016 | For two crore tax payers with income less than Rs 5 lakh, the ceiling of tax rebate under section 87A was raised from Rs 2,000 to Rs 5,000. The limit of deduction for rent paid under section 80GG was increased from Rs 24,000 per annum to Rs 60,000 per annum.

A person with taxable income (after deductions such as Section 80C, etc.) of Rs 3.5 lakh will pay a tax of Rs 2,575 as against Rs 5,150 payable earlier. Individuals with taxable income over Rs 50 lakh up to Rs 1 crore will be paying a flat surcharge of 10 percent on the total tax payable by them. The direct tax proposals would result in the revenue loss of Rs 1,060 crore.
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2017 | A person with taxable income (after deductions such as Section 80C, etc.) of Rs 3.5 lakh will pay a tax of Rs 2,575 as against Rs 5,150 payable earlier. Individuals with taxable income over Rs 50 lakh up to Rs 1 crore will be paying a flat surcharge of 10 percent on the total tax payable by them. The direct tax proposals would result in the revenue loss of Rs 1,060 crore.

The cess on income tax payable was increased to four percent from three percent. The standard deduction which had been removed in Budget 2005 was brought back for the salaried and pensioners. The amount eligible for the standard deduction was Rs 40,000. The exemption of interest income with bank and post offices deposits was raised to Rs 50,000 from Rs 10,000.
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2018 | The cess on income tax payable was increased to four percent from three percent. The standard deduction which had been removed in Budget 2005 was brought back for the salaried and pensioners. The amount eligible for the standard deduction was Rs 40,000. The exemption of interest income with bank and post offices deposits was raised to Rs 50,000 from Rs 10,000. (Image: Reuters)

Citizens with income less than Rs 5 lakh were to get full tax rebate, which meant that they did not have to pay taxes. The rebate under section 87A was hiked to Rs 12,500 from Rs 2,500. The amount under the standard deduction was also hiked by Rs 10,000 to Rs 50,000 from Rs 40,000.
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2019 | Citizens with income less than Rs 5 lakh were to get full tax rebate, which meant that they did not have to pay taxes. The rebate under section 87A was hiked to Rs 12,500 from Rs 2,500. The amount under the standard deduction was also hiked by Rs 10,000 to Rs 50,000 from Rs 40,000.

First Published on Jun 27, 2019 09:12 am
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