New Delhi, You will not have to pay have to income tax on an annual income of Rs 5 lakh. This is one of the big steps among the slew of measures announced in the budget to woo the middle class before elections.
With the new income tax rate, coupled with 80C exemption limit, you will not have to pay income tax if you have an income of Rs 6.5 lakh.
Other Measures
1. No TDS on interest income from banks and post offices up to Rs 40,000. Up from current Rs 10,000
2. No TDS on rent upto Rs 2.4 lakh, up from Rs 1.8 lakh
3. No income tax on second self occupied house
4. Standard Deduction increased from Rs 40000 to Rs 50000
Goyal also announced the “Pradhan Mantri Shram Yogi Mandhan”, a scheme to provide an assured monthly pension of Rs 3,000 per month for workers in the unorganised sector who earn up to Rs 15,000 per month.
While presenting the Interim Budget for 2019-20 in the Lok Sabha, Goyal said the scheme will benefit 10 crore workers and might become the world’s biggest pension scheme for the unorganised sector in the next five years.
“Half of India’s GDP comes from the sweat and toil of 42 crore workers in the unorganised sector. We must provide them a social security coverage,” said Goyal.
He said the mega pension scheme will benefit all workers under the unorganised sector including household helps, rickshaw pullers, agricultural labourers and beedi workers.
Under the scheme, the workers will receive a monthly pension of Rs 3,000 after attaining 60 years of age.
A worker joining the scheme on attaining 29 years of age or above will have to contribute Rs 100 per month while those joining the at the age of 18 will have to contribute Rs 55 per month.
Goyal said this scheme will be in addition to the life insurance scheme under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and accident insurance scheme under the Pradhan Mantri Suraksha Bima Yojana (PMSBY)
