Union Budget 2019: Here are 8 key highlights of tax exemption announced by FM Piyush Goyal

In a major relief for the salaried class, finance minister Piyush Goyal announced full tax exemption for income up to Rs 5 lakh per year. Individuals falling under the said tax slab will get full tax rebate.

He further added that all the direct tax relief measures will be applicable from April 1 of the current fiscal year.

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, providing major relief to salaried class. This translates to a benefit of Rs 18,500 crore to more than 3 crore taxpayers.

Taxable Income up to Rs. 500,000/- will be exempted.

Standard deduction for salaried persons will be raised from Rs 40,000 to Rs 50,000.

Tax on notional house property income is exempted up to two self-occupied houses. 

TDS on interest (section 194A) on bank and post office deposits – Threshold limit raised from Rs 10,000 to Rs 40,000.

TDS on rent (section 194I) – Threshold limit raised from Rs 180,000 to Rs 240,000.

Capital Gain Investment Scheme – On the capital gain up to Rs 2 crore can take benefit of investments in up to two residential houses. (available once in a lifetime).

Exemption to affordable housing Projects extended up to March 31, 2020. 

Notional Income tax under income from house property kept as inventory, can avail exemption up to two years instead of 1 year.