The introduction of the Interim Budget this year by our honourable Finance Minister Piyush Goyal has provided a great relief to the taxpayers and pensioners.
The following points are notable:
- The rebate which was earlier limited to INR 2500 has been increased to INR 12500. So you dont need to pay tax if your taxable income is upto INR 5 lakhs. In other words income upto INR 5 lakhs is tax free!
- In the last budget the transport allowance and medical reimbursement had been replaced by a standard deduction of INR 40000. This year through the Interim Budget, the standard deduction has been further increased to INR 50000.
- Last but not the least, the TDS threshold of INR 10000 in case of interest income from bank deposits and FD have been raised to INR 40000. However it doesn't mean that the interest amount will not be taxable upto 40000. It only means that you wont have to deposit TDS amount until your income from deposits crosses INR 40000. This will save you from the hassle of filing income tax returns just for TDS refund. Also TDS threshold of INR 180000 in case of income from rent has been proposed to be increased to INR 240000.
This year's budget has been a rejoice for the middle class families dependent on salaried individuals and also for the pensioners.
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