Budget 2019 India: Finance Minister Nirmala Sitharaman is all set to present the first Union Budget of the newly elected Modi 2.0 government on July 5. Expectations from industry bodies and common man are high given the present state of the Indian economy and unemployment. However, a few months ago on February 1, the Modi government announced major good news for taxpayers. In Interim Budget 2019, the then Finance Minister Piyush Goyal announced a slew of steps that the central government felt would ease lives of taxpayers.
In the interim budget, the Modi government looked to reform the Income Tax return (ITR) process and extend a host of benefits. It announced that ITR would be processed in 24 hours and refunds would be issued simultaneously. The government also announced that all verification and assessment of ITR would be done electronically without any physical interface within 2 years.
On the personal income tax front, an exemption from tax on the income of up to Rs 5 lakh per annum was provided in the Interim Budget 2019. The central government also announced that individuals with gross income up to Rs 6.5 lakh per annum do not need to pay any tax if they make investments in provident fund etc.
The Modi government in interim Budget 2019 raised the Standard tax deduction from salaried persons from previously existing Rs 40,000 to Rs 50,000. The Gratuity limit was increased Rs 10 lakh to Rs 30 Lakh in the interim Budget 2019.
In interim Budget 2019, Tax Deducted at Source (TDS) threshold on interest earned from Bank/Post Office deposits was raised from Rs 10,000 to Rs 40,000 by the central government.
The interim budget 2019 saw the central government increasing the TDS threshold for deduction of tax on rent from Rs 1,80,000 to Rs 2,40,00.
The Modi government will once again get an opportunity to make announcements on the Income Tax front in the Union Budget, if it wants to do so.