New Delhi: Union Finance Minister Piyush Goyal on Friday proposed a full tax rebate for individuals with income up to Rs. 5 lakh.
“Individual taxpayers having taxable annual income up to Rs 5 lakh will get full tax rebate and therefore will not be required to pay any income tax,” Goyal said in his budget speech.
The Finance Minister also said that even persons having gross income up to Rs 6.50 lakh may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc.
The Minister further said that the Standard Deduction is being raised from the current Rs 40,000 to Rs 50,000. This will provide an additional tax benefit of Rs 4,700 crore to more than 3 crore salary earners and pensioners
The income tax proposal will provide tax benefit of Rs 18,500 crore to an estimated 3 crore middle-class taxpayers comprising self-employed, small business, small traders, salary earners, pensioners and senior citizens across the country, he claimed.