Finance Minister Piyush Goyal today delivered the Union Budget 2019, which has brought a host of significant benefits for the middle class. Today FM announced a full rebate of income tax to people earning less than Rs 5 lakh per annum. The tax rebate is expected to benefit around 3 crore middle-class taxpayers.
Finance Minister Piyush Goyal before announcing the sops for the middle class, thanked them for their immense contribution to the nation building. He said it is because of the middle class, that the individual belonging to the poor and marginalised section, has access to a better way of life.
“Your tax helps provide dignity to our sisters and mothers with toilets and cooking gas connection” He further added. Be it the about the dignity of the retired soldier, or about health care to our around 50 crore citizens, FM Piyush Goyal said that it is the middle class which is helping those sections.
FM Goyal, praising the government efforts in the last four years said that the tax collection and tax base have shown a significant increase, which has helped the government inch towards moderate taxation and high compliance regime.
“It is, therefore, just and fair that some benefits from the tax reform must also be passed onto the middle-class taxpayers,” FM said. Due to restrictions of the interim budget, FM Goyal said that tax proposal can only be presented in the regular budget. Despite this, the finance minister announced reforms so as to give certainty to small taxpayers, especially the middle class, senior citizen and pensioners, at the beginning of the year. FM Goyal felt that such reforms should not wait for the full budget, and be announced now only.
In addition to the tax rebate, the standard deduction for salaried income has also been raised to ₹50,000 from current ₹40,000. The Finance minister Goyal also announced tax relief on interest income, as TDS threshold on interest on bank and post office deposits raised from ₹10,000 to ₹40,000.
Also, TDS threshold on rental income has also been raised from 1.8 lakhs to 2.4 lakhs. Capital gains from residential property sale will be eligible for exemption under section 54 for up to 2 properties bought.
The Middle-class has often complained about being sandwiched between the lower income group and rich section of society. The reforms like tax rebate up to Rs 5 lakh is bound to give the middle class a sigh of relief, as the burden on its shoulders stands curbed.
After the budget speech by Piyush Goyal, PM Modi also praised the contributions of the middle class.
PM: It’s generosity&honesty of middle class&upper middle class which provides tax to the nation through which schemes are formulated&there is welfare of poor. There was always the demand to exempt those, with annual income upto Rs 5 Lakh, from taxation. Our govt fulfilled this. pic.twitter.com/e69OaBvNFI
— ANI (@ANI) February 1, 2019
The PM stated that it is the generosity and honesty of the middle class and upper middle class which provides taxes to the nation and helps to formulate schemes for welfare.