Budget 2019: No tax for income up to Rs 5 lakh; standard deduction rises to Rs 50,000

New Delhi: Finance Minister Piyush Goyal on Friday doled out tax sops to middle class including doubling of income tax exemption limit to Rs 5 lakh, raising standard deduction to Rs 50,000 and provided concessions on interest income from bank deposits and rent. “Individuals with income up to Rs 5 lakh will not be required to pay any tax,” Goyal said while presenting Interim Budget for 2019-20 in Lok Sabha. He said with this, individuals who are earning gross income of Rs 6.5 lakh per year and have made investments in savings instruments, will be exempt from paying income tax. [caption id=“attachment_4133315” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] “This will provide the benefit of Rs 18,500 crore rpt crore to 3 crore middle-class taxpayers self-employed, senior citizens,” he said, adding the number of beneficiaries will go up for those who have made investments in mediclaim and pension. No tax will be deducted on interest earned on bank and post office deposits of up to Rs 40,000 annually, up from Rs 10,000 currently. The Budget also proposed to exempt tax on notional rent for unsold housing units for two years. Goyal also proposed that benefit of rollover of capital tax gains be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains of up to Rs 2 crore. However, it can be exercised once in a lifetime, he added. The Income Tax department will move towards faceless assessment and verification of returns, Goyal said Friday. Standard deduction has been raised from Rs 40,000 to Rs 50,000 which will benefit three crore salaried individuals. Follow full coverage of Union Budget 2019-20 here     To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day. To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.