People with income up to Rs 9.5 lakhs can avoid tax: Piyush Goyal

New Delhi: Union Finance Minister Piyush Goyal on Tuesday said that individuals earning up to Rs 9.5 lakhs can evade tax liability by making the right choices at the several saving schemes available. He stressed that tax concessions have been provided to help the middle class living on a tight budget.

Replying to the debate on the Finance Bill in Lok Sabha, the Minister said he did not propose any change in the tax rate but only provided few rebates which will boost spending and help the economy.

Goyal was responding to the issues raised by certain members as to why the government announced concessions in the interim budget, ahead of the general elections.

The Minister said as per the calculations made by the officials, an individual having an income of Rs 9 to Rs 9.5 lakh can escape income tax liability by taking advantage of the host of tax savings schemes under the Income Tax Act.

The Finance Bill, which contains tax proposals, was passed by the Lok Sabha with a voice vote, completing the budgetary process in the lower house.

In the interim budget passed, the Finance Bill 2019 proposed a full tax rebate for individuals with income up to Rs. 5 lakh.

The Finance Minister had 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 next government, which will be formed after the upcoming general elections, will come out with a full budget in July. The next government will also come up with a Finance Bill containing the tax proposals for 2019-20.

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