Submit :
News                      Photos                     Just In                     Debate Topic                     Latest News                    Articles                    Local News                    Blog Posts                     Pictures                    Reviews                    Recipes                    
  
How Budget 2019 will benefit the middle class?
The Budget for 2019 presented by Finance Minister Piyush Goyal was historic for the middle class section of the society. Never ever in the history of independent India , the concerns of the middle class were addressed like the same were addressed in the current Budget. It is also for the first time that the contribution of the middle class towards nation building was formally acknowledged in the Budget presentation itself.

Let us understand the specific benefits provided to the middle class section of the society in this Budget:

All persons having net taxable income (after all permissible deductions) up to Rs 5,00,000 per annum have been provided full tax rebate.  It is pertinent to note that as per the latest data provided by the Central Board of Direct Taxes, during the Financial Year 2017-18, total 5,71,69,290 individuals have filed their income tax returns. Out of this, around 75 per cent returns (4,28,15,273) were filed by the persons having net taxable income up to Rs 5,00,000 per annum.  By making the net taxable income up to Rs 5,00,000 completely tax free, the Finance Minister has provided a big relief to around 75 per cent people under this category which primarily comprises of the middle class section of the society.  It is also possible for a person having Rs 10,00,000 annual income to claim all the possible deductions and pay zero tax on Rs 10,00,000 income. Deductions under Section 80C, NPS, housing loan interest, mediclaim and education loan interest, if combined together and availed by a person, can enable him not to pay any income tax even on income of Rs 10,00,000.

Another major relief for the middle class has been provided by abolishing the income tax levy on the notional rent on the second self occupied house property by an individual.

Standard deduction for salaried employees has been increased from Rs 40,000 to Rs 50,000.

Interest more than Rs.10,000 received by a person from Banks and Post office were liable for a Tax Deduction at Source. This limit of Rs.10,000 has been increased to Rs.40,000. Now no TDS will be deducted by Banks and Post Office upto the annual interest income of Rs.40,000.

There was a requirement to deduct the TDS from the rental payments if the amount per annum exceeded Rs 1,80,000. This limit of Rs 1,80,000 has now been enhanced to Rs 2,40,000.

Income tax returns are proposed to be processed within 24 hours and refunds will be processed simultaneously.

Within the next 2 years, all income tax scrutiny assessments shall be done electronically in online mode, taking away the physical interactions between the income tax officer and the taxpayer. It is pertinent to note that taxpayers of the middle class category, which comprise around 75 per cent of the total number of taxpayers, always feared harassment post filing of their income tax return. This harassment will now be a thing of the past for not only for the middle class, but also for the other sections of the society.

Tax Free Gratuity limit has also been doubled from the existing Rs 10,00,000 to Rs 20,00,000.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
COMMENTS (0)
Guest
Name
Email Id
Verification Code
Email me on reply to my comment
Email me when other CJs comment on this article
}
Sign in to set your preference
Advertisement
merinews for RTI activists


Advertisement
Not finding what you are looking for? Search here.