Friday, February 1, 2019

Income Tax Slabs Change, Exemption Limit Raised To Rs.5 Lakhs Per Annum

Finance Minister Piyush Goyal announced to increase tax rebate on income up to Rs 5 lakh per annum. Earlier, income tax exemption was applicable to the income limit of Rs2.5 lakhs for individuals aged below 60 years and such income was taxed by 5 percent.

He said that if the individual taxpayers invest up to Rs 1.5 lakh in the provident fund, the total exemption limit would be 6.5 lakh rupees per year(annum).

Around 30 millions middle-class taxpayers will get tax exemption due to this measure, "said - Finance Minister" 

Other Important Announcements

▪️  Finance minister also announced that the gratuity limit for the salaried class would be increased from Rs 10 lakh to Rs 30 lakh. 
▪️  Standard tax deduction raised from Rs 40,000 to Rs 50,000 for salaried persons. 
▪️  On the rental income, the TDS limit was increased from 1.8 lakh to 2.4 lakh rupees.