Interim Budget 2019's Rural Push, Tax Sops Spells Cheer For Auto Industry

Interim Budget 2019's Rural Push, Tax Sops Spells Cheer For Auto Industry

Interim Budget 2019's Rural Push, Tax Sops Spells Cheer For Auto Industry

Union Finance Minister Piyush Goyal, in his Budget 2019 speech on Friday announced several tax benefits for the salaried and middle class.

He said with this, individuals who are earning gross income of Rs 6.5 lakh per year and have made investments in savings instruments, will be exempt from paying income tax. Chandra added that the proposal of giving rebate in income tax to people earning up to Rs 5 lakh will benefit another three crore people and the revue forgone would be Rs 18,500 crore.

And, for a family of three comprising husband, wife and a senior citizen, this may result in nearly no tax till a combined income of Rs 25 lakh per year. The threshold for tax deduction at source on rent has gone up to Rs 2.4 lakh from current Rs 1.8 lakh.

Though the income-tax slabs have remained unchanged, now individuals with a net taxable income of up to Rs 5 lakh are exempt from paying any income tax for this fiscal. Income from Rs 3 lakh to Rs 5 lakh is taxed at 5 per cent, and an income from Rs 5 lakh to Rs 10 lakh at 20 per cent and above Rs 10 lakh at 30 per cent.


In the last budget the rural jobs programme known as Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), had been allocated ₹ ₹55,000 crores with the government allocating another ₹6,082 crores earlier this month.

All those earning up to Rs 5 lakh a year will now receive a full tax rebate. Around 3 crore middle class taxpayers will get tax exemption due to this measure, the finance minster said. Here are the highlights of the interim budget, which comes just ahead of general elections which must be held by May.

- Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees. This was introduced past year after being abolished in the Finance Act 2005.

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