NEW DELHI: Finance minister Mr. Piyush Goyal presented the interim budget yesterday-

Here are the key highlights of Union Budget Speech from the salaried classes perspective:

1. No tax on individuals having income upto Rs.5 lac.
2. Standard deduction for salaried employees raised from Rs. 40,000 to Rs. 50,000.
3. Threshold limit for TDS on rent increased from Rs.180000 to Rs.240000.
4. No tax-liability on deemed basis under the head “house property” even if an assessee has two self-occupied houses.
5. Threshold limit for TDS on interest income increased from Rs.10000 to Rs.40000.
6. Section 54 benefit will be available in respect of 2 houses.

The Finance minister said the current income tax slab would continue in the next fiscal year 2019-20.
There is no increase in threshold limit of Rs 2,50,000. It is rebate under Section 87A which is increased from Rs. 2,500 to Rs 12,500. And eligibility of total income not to exceed Rs 3,50,000 is increased to Rs.5,00,000. The moment it exceeds Rs. 5,00,000 tax will start from Rs 2,50,000 at 5% up to Rs.5,00,000, 20% from 5,00,000 to Rs10,00,000 and 30% on above Rs. 10,00,000.

It is mean that you will not get any benefit of current tax relief if your taxable income is more than Rs. 500000/-. You will only get the benefit of Standard Deduction for the salaried person which increased from Rs. 40,000/- to Rs. 50,000/-.

Now the question arises that how a person will get tax benefit up to Rs. 9 lakhs. Let see decipher by an example as below:

Suppose Salary of Ram is Rs. 900000/- with Basic Salary Rs. 400000/- House Rent Allowance Rs. 200000/- and Other Allowances Rs. 300000/-.

Tax Calculation for Ram:

A salaried person can take tax benefits up to 9.90 lakhs if he avail 100% deduction of 80C, 80CCD and 80D.

Budget 2019 Gives Income Tax Relief to Businessman and Professional up to the Income of 7.10 lakhs

Let see another example as below:

Suppose Ram earn profit Rs. 710000/- from business or profession.

Tax Calculation for Ram:

Finance Minister Piyush Goyal did not disappoint to the middle class, who had been watching this budget with a lot of hope for relief.

In the previous budgets also, the Narendra Modi led-government provided tax relief to taxpayers. In Budget 2014, the minimum tax-exemption limit was raised from Rs 2 lakh to Rs 2.5 lakh. Along with that deduction, limit under section 80C was hiked by Rs 50,000 to Rs 1.5 lakh and deduction on interest paid on a housing loan to Rs 2 lakh.