Union Budget 2019 : Full Tax Rebate For Annual Income Up To Rs 5 Lakhs Announced

Union Finance Minister Piyush Goyal announced in the budget speech in Parliament today that full income tax rebate will be given for individual annual income up to Rs. 5 lakhs for the financial year 2019-2020.

"Individuals with taxable income of Rs.5 lakh annually will get full tax rebate", the minister said. This is estimated to benefit about Rs. 3 crores middle class tax payers.

Individuals having gross income up to Rs. 6.5 lakhs will not need to pay any tax if they make investments in providential funds and prescribed equities, he said.

Other key announcements:

• TDS threshold limit for rental income raised from Rs.1.8 lakh to 2.4 lakh
• Benefit of rollover of capital gains under Section 54 of Income Tax Act increased from investment in one residential house to two for those with capital gains up to Rs. 2 crores
• Standard deduction for salaried persons raised from Rs.40,000 to Rs.50,000
• Interest income up to Rs.40,000 from bank deposits exempt from TDS, instead of the present limit of Rs.10,000

Gratuity limit increased

The FM also announced that the gratuity limit for the salaried class would be increased from Rs. 10 lakhs to Rs 20 lakhs.

EPF limit increased

The limit of Employment Provident Fund has been increased from Rs.2.5 lakh to Rs. 6 lakh in case of demise of employee

"To ensure safety to the family of a salaried person, if he or she dies prematurely, the government of India proposes to increase EPF limit from Rs.2.5 lakhs to Rs.6 lakhs", Goyal said.

ESI Limit increased

The limit for ESI eligibility is to be increased from Rs. 15,000 to Rs.21,000.

Pension scheme for workers in unorganized sector.

Scheme for monthly pension of Rs.3000 for workers in unorganized sector, after the age of 60 years, announced.