New Delhi:  the income tax rules always create s curiosity around the Budget season and this time it seems to be a confusion with regard to the income tax slab 2019-20 and the applicable income tax rate. In the Budget 2019-20, the acting Finance Minister Piyush Goyal had proposed a bouquet of reliefs that are supposed to be in the welfare of middle-class salaried taxpayers.

The government has in its capacity and tried to propose a group of packages for middle-class people, in order to curb the burden of paying taxes. Other than the bundle of joy for salaried-class, the interim Finance Minister has announced a number of reliefs for small businesses, poor farmers and pensioners. Being an interim Budget, the government was restricted from announcing up full-fledged changes.

Here 5 important point to know

1.    The interim Finance Minister Piyush Goyal has proposed that individual taxpayers having “taxable annual income up to Rs 5 lakhs” will get “full tax rebate”. All the applicable income tax rates have also kept unchanged.

2.    Individuals having an annual income of Rs 6.5 lakh can also save income taxes, provided they invest a sum of up to Rs 1.5 lakh in prescribed savings schemes under Section 80C of the Income Tax Act such as Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Saving Certificates (NSC), insurance schemes, etc.

3.    Further an individual is also eligible to claim income tax deductions from of up to Rs 2 lakh on interest home loans, education loans, National Pension Scheme (NPS) contributions, medical insurance, medical expenditure on senior citizens.

4.    Here increase the standard deduction by Rs 10,000 to Rs 50,000 from the present Rs 40,000. Therefore, going forward, all the salaried persons can claim a standard deduction of Rs 50,000 on their respective taxable income.

5.    Other than this, interim Finance Minister has proposed to exempt the income tax payable on notional rent on the second self-occupied house. As of now, income tax is payable on the notional rent if an individual has more than one self-occupied house.

All above information are furnished by considering Interim budget Session 2019-20 announcement. 

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