Budget 2019: No income tax up to Rs 5 lakh, says FM Piyush Goyal
Updated : February 01, 2019 02:16 PM IST
In a major boost to the small taxpayer, the government said it will increase the exemption limit for income tax paid by individuals from the current Rs 2.5 lakh to Rs 5 lakh. This translates to a benefit of Rs 18,500 crore to more than 3 crore taxpayers.
Standard deduction has been raised to Rs 50,000 from Rs 40,000. The government also increased the gratuity limit from Rs 10 lakh to Rs 30 lakh. Any person who completes 5 years in an organisation is eligible for gratuity.
The government also announced that it is going to provide income tax relief on notional rent from unsold house extended up to two years. Tax will be levied after two years on the unsold inventory.