Soon after Finance Minister Piyush Goyal announced the full tax rebate upto Rs 5 lakh in the Interim Budget today he had to stop his speech briefly after he announced the full tax rebate as it was met with thunderous applause from the treasury benches, with some lawmakers chanting 'Modi, Modi'.
Individual taxpayers having annual income upto Rs 5 lakhs will get full tax rebate. Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities :FM Piyush Goyal#Budget2019#BudgetForNewIndia pic.twitter.com/4LgxrCK9u3— PIB India (@PIB_India) February 1, 2019
In the previous budgets also, the Narendra Modi led-government provided tax relief to taxpayers. In Budget 2014, the minimum tax-exemption limit was raised from Rs 2 lakh to Rs 2.5 lakh. Along with that deduction, limit under section 80C was hiked by Rs 50,000 to Rs 1.5 lakh and deduction on interest paid on a housing loan to Rs 2 lakh.
Currently, income up to Rs 2.5 lakh for resident individuals (age below 60 years) is exempt from tax. Similarly, for senior citizens aged 60 years and above but below 80 years, income up to Rs 3 lakh is exempt from tax. Income up to Rs 5 lakh is exempt from tax for super senior citizens (age 80 years and above).
Finance Minister Piyush Goyal Friday announced an increase in defence budget to over Rs 3 lakh crore in 2019-20. Presenting the Budget for 2019-20 in the Lok Sabha, Goyal also said Rs 35,000 crore has been given under OROP in the last three years. Announcing substantial hike in military service pay, the finance minister said defence budget has been increased to over Rs 3 lakh crore in 2019-20.
He also said the government will launch a mega pension yojna for 42 crore unorganised sector workers and assured monthly pension of Rs 3,000 after reaching age of 60 years. On railways, he said its capital expenditure programme will be at an all-time high of Rs 1.58 lakh crore in the next fiscal. "We have eliminated all unmanned railway crossings in the country," he added. The finance minister also said the Vande Bharat Express will provide speed, service and safety to citizens and will give boost to Make In India.