Indians will no more witness “tax terrorism” after the Modi government’s historic “Budget 2019”. From farmers to soldiers, from common man to businessman, the Modi government has gifted bumper schemes to each and every Indian. This makes the “Budget 2019” one of the most historic budget in the history of independent India.
In the year 2014, the tax exemption was upto Rs 2 lakh but the Modi government extended it to Rs 2.5 lakh and now the limit has been doubled and this has created a festive wave across the nation.
Finance Minister Piyush Goyal said “While for the present, the existing rates for income tax will continue for FY 19-20, I propose the following changes. Individual tax payers having taxable income up to Rs 5 lakhs will get full tax rebate. Therefore, they will not be required to pay any tax”.
The finance minister further said “As a result, even people will gross income of up to Rs 6.5 lakhs may not be required to pay any income tax if they make investments in specified savings, insurance etc. In fact, with additional deductions, such as the interest of home loans up to Rs 2 lakh, interest on educational loan, medical insurance. With all of these deductions, persons having even higher income will not have to pay any tax. This will provide tax benefit for Rs 18,500 to an estimated 3 crore middle class tax payers”.
So earlier if a person was earning more than Rs 20000 per month, he had to pay tax as the limit was Rs 2.5 lakh annually, but now even if he earns Rs 40,000 per month, no need to pay tax. All thanks to Modi government.