A middle-class job seeker was looking at the Modi Government in the interim budget (budget 2019) with a hopeful look. The government today brought happiness to their face by fulfilling their budget wishes. Most of the people of the country were expecting a concession from the government on the tax front, and the government too did not disappoint them.
Presenting the interim budget in the Lok Sabha, Union Minister Piyush Goyal has increased the limit of income tax exemption. Prior to the Lok Sabha elections, this common man has got a big gift from the government. The government has increased the limit of income tax exemption from Rs 2.5 lakh to Rs 5 lakh. The Modi government has made the middle class happy by increasing the limit of income tax exemption in the interim budget.
Prior to this announcement, there was no tax on the income earned up to Rs 2.5 lakh in the tax slab. While income of 2.5 to 5 lakh was taxed at the rate of 5 per cent. On annual income of Rs 5-10 lakh, the tax was 20 per cent and more than Rs 10 lakh was 30 per cent tax. Although the government had already indicated an increase in income tax exemption.
It may be noted that before this, Pranab Mukherjee during the UPA government had increased the limit of income tax exemption limit from 1.8 lakh rupees in 2012 to Rs 2 lakh. After that, in 2014 the limit of income tax exemption was increased from 2 lakh to 2.5 lakh rupees. Income tax deduction under Section 80 and section 80 was extended in 2014, it was not increased in the last 5 years.
After giving 10 percent reservation to the financially weak, the Modi government has made a big bid to woo the common man before the Lok Sabha elections 2019, after a big increase in the income tax exemption limit.
At the same time, before the declaration, no tax was levied to the extent of Rs 3 lakh for 60 years to 80 year old citizens. While income from Rs 3 lakh to Rs 5 lakh attracted a 5 percent tax. There was a 20 per cent tax for income between 5 to 10 lakh rupees. Senior citizens had to pay 30 percent tax on income above 10 lakh.