In what appears to be a much awaited relief for middle class, Finance Minister Piyush Goyal on Friday doubled income tax exemption limit to Rs 5 lakh, and if you make investments, up to Rs 6.5 Lakh.
- Cheer for middle income tax payers. FM Goyal announces tax rebate and increase in standard deduction.
- Proposal to raise the limit TDS threshold to Rs 40,000 from Rs 10,000 currently.
- No tax on notional rent on second self-occupied house and no tds on house rent up to Rs 2.4 lakh
- Standard deduction has been raised from Rs 40,000 to Rs 50,000.
- Tax on SB Interest exemption raised from 10,000 to 40,000
- So, those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have to pay no tax. Will benefit nearly 3 crore middle class income earners.
The proposal is set to benefit 3 crore middle-class tax payers. Of course, when the threshold exemption limit is doubled, it can increase the burden on the exchequer by no less than Rs 18,500 crore.
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