InvestorQ : What did the Finance Minister announce for individuals with low income?
Rohan Bhadani made post

What did the Finance Minister announce for individuals with low income?

Answer
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Shreya Karn answered.
1 year ago


Although there wasn’t any tweaking in income tax slabs, Finance Minister Piyush Goyal provided some relief to income tax players by proposing the tax rebate amount be raised from Rs 2.5 lakh to Rs 5 lakh.

In his maiden Budget speech, Piyush Goyal announced: “Individual taxpayers having taxable annual income up to Rs 5 lakhs will get full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to Rs 6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc. In fact, with additional deductions such as interest on home loan up to Rs 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens etc, persons having even higher income will not have to pay any tax.”

The FM further added that this proposal will provide a 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.