So in next fiscal, if an assessee has net taxable income of up to Rs 5 lakh in the financial year, he/she is allowed to claim the entire tax payable as tax rebate. Although the Centre's share of goods and services tax (GST) receipts is expected to be about Rs 1 trillion below the Budget Estimates in 2018-19, this share is projected to grow at over 20 per cent in 2019-20.
He added means those with gross income up to Rs 6.50 lakh may also not have to pay any income tax if they make investments in provident funds, specified savings, insurance etc.
The government has also proposed rollover of capital gains up to Rs 2 crore towards buying (investing) two houses compared to only one under the present one unit only.
Presenting the Budget for 2019-20 in the Lok Sabha, Goyal also said that a welfare development board to frame special strategies for the benefit of the hard-to-reach de-notified, nomadic and semi-nomadic communities will be set up under the Ministry of Social Justice and Empowerment. This, the FM said, will benefit almost 3 crore middle-class income earners.
Standard deduction, which reduces your taxable income thereby reducing your tax liability, has been increased from Rs 40,000 to Rs 50000.
Back-of-the-envelope calculations show that the cash handouts and tax rebates could translate into an additional disposable income of the order of Rs 1 lakh crore, a bulk of which will likely go towards consumer spending and boost demand. But, those individuals who have earn between Rs 2.5 lakh and Rs 5 lakh used to pay a tax of 5%.
Now, as per news website Alt News, "The interim finance budget does not propose any changes in tax slabs but expands the scope of tax rebate (Rs 12,500 from Rs 2,500) and standard deduction (Rs 50,000 from Rs 40,000)". On the other hand, budget documents show the government has reduced its estimates for gross tax revenue to Rs 22.48 trillion for 2018-19 from Rs 22.71 trillion announced in February a year ago.
Reacting to the Opposition's allegations that the Modi government is looking to take political mileage out of interim Budget, the Union Minister said during UPA regime in 2009, then finance minister Pranab Mukherjee announced a stimulus package not even in the interim Budget, but while replying to it. The government has raised about Rs 35,500 from asset sales so far this fiscal year. As per the government, construction of rural roads tripled in five years, thus increasing connectivity.
Transfers from the Reserve Bank of India, which has been a bone of contention between the government and Mint Road, have been sharply increased, by over a third, in the Revised Estimates for 2018-19 from Rs 55,000 crore to Rs 74,000 crore.