Finance Minister Nirmala Sitharaman presented her first budget. During this, the Finance Minister announced that no tax will be levied on behalf of the government for income of less than Rs 5 lakh annually. There was no change in the income tax slab. However, the discount on investment has increased. I thank the income tax payers. The country has grown by taxpayers’ money only. Direct tax has increased. In five years, 78 percent direct tax increased.
Modi government has shocked those who earn more. Now, those who are earning between Rs 2 and 5 crore per annum will get an additional tax of 3 per cent plus a tax of 7 per cent plus tax on earning more than Rs 5 crore. There was a lot of earlier indirect taxes, which were now added to the same tax after it came to GST. “To get revenues, we have less burden on middle and lower-level families. We want those whose income is high, contribute more to the development of the country.”
As per the Interim Finance Minister Piyush Goyal’s budget speech, “Individual taxpayers having taxable annual income Rs 5 lakh will get full tax rebate and therefore will not be required to pay any income tax.”
Abhishek Soni, CEO, tax2win.in, a tax-filing firm says, “As per the proposals of Budget 2019, there will be no tax liability if your taxable income is Rs. 5 lakh or less. However, ITR filing is still mandatory if your income exceeds the basic exemption limit of Rs. 2.5 Lakh ( if age is below 60).
The Modi government has made a big announcement for the middle class. Now, people buying a house of 45 lakh rupees will be given an additional discount of Rs. 1.5 lakh rupees. The total exemption received on the interest of the housing loan has now increased from 2 lakh to 3.5 lakh. Apart from this, on purchase of electric vehicles, one will also get exemption of Rs 2.5 lakh.
Naveen Wadhwa, DGM, taxmann.com says, “The key announcement of Interim Budget, that no tax to be levied if income is up to Rs 5 lakh, has a rider. The tax slabs has not been tinkered with and this benefit is passed on by extending the scope of relief under Section 87A. Though a taxpayer, whose income is up to Rs 5 lakh, is not required to pay any tax, yet he is required to file ITR if his income exceeds the maximum exemption limit. Any late filing of return would invite the late filing fees.
Corroborating views Soni says, “Even though there will be no tax on those with income up to Rs. 5 lakh but there will be late filing fees of Rs. 1,000/- if a person does not file the ITR within due date and his/her income exceeds Rs. 2.5 lakh.”
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