Published On: Fri, Feb 1st, 2019

Govt doubles tax exemption limit 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.

Interim Finance Minister Piyush Goyal today arrives at the parliament to present 2019-20 budget in New Delhi.

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

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