Friday, 20 May, 2022
HomeEconomyGovt doubles tax exemption for the middle class man

Govt doubles tax exemption for the middle class man

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In the interim budget presentation, finance minister Piyush Goyal increased the tax exemption from Rs 2.5 lakh to Rs 5 lakh.

New Delhi: In a major relief to the middle-class, Finance Minister Piyush Goyal Friday proposed to double the threshold tax exemption limit to Rs 5 lakh and increased the standard deduction to Rs 50,000 from Rs 40,000.

The proposal will benefit 3 crore middle-class tax payers, Goyal said while unveiling the Budget proposals for 2019-20.

Doubling the threshold exemption limit will increase the burden on the exchequer by Rs 18,500 crore.

If an individual invests in the specified tax saving schemes of the government, the effective tax-free income limit will be Rs 6.5 lakh a year, while it may go further up with additional avenues like NPS, medical insurance and home loan interest payment. -PTI


Also read: Informal sector gets yet another pension scheme


 

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