Finance Minister Piyush Goyal presented the last budget of Modi Government on February 1 ,2019. Keeping in mind the upcoming general elections Finance Minister Piyush Goyal targeted the salaried class, middle class and farmers in their budget . Specially salaried class who was expecting a tax relief overjoyed when budget was announced. Apart from tax relief so many other announcement were made by Goyal to give a close up to salaried class .Here are the main announcements that were made by Goyal for salaried class.
- Tax relief : It was the most important announcement made by Finance Minister which brings smile on salaried class face. As per announcement made by Goyal an individual whose annual income is ₹ 5,00,000 or less exempted from tax . If annual income is upto ₹ 6,50,000 then also , an individual can claim for exemption upto ₹ 1,50,000 under U/S 80 C . It simply means no tax Liability would be there if your annual income is ₹ 6,50,000 or less if has investment in Public Provident Fund(PPF), Equity Linked Saving Schemes ( ELSS ), Fixed Deposit (FD), Insurance and other tax saving schemes . No changes has been made in other tax slabs and remain unchanged.
- Standard Deduction : Standard deduction limit has also been increased by ₹ 10,000 . Now an individual can claim for a standard deduction of ₹ 50,000 from taxable income, which was ₹ 40,000 earlier.
- Additional Tax Deduction : In the budget Piyush Goyal has also proposed to have a tax deduction upto ₹ 2,00,000 on home loan interest, Medical Insurance, National Pension Scheme (NPS), and medical expenditure on Senior Citizens.
- Free Insurance For EPF holders : While presenting the Interim budget 2019 on floor Piyush Goyal also announced to have an Insurance cover of ₹ 6,00,000 to every EPF holder. It means a salaried person who has EPF account is eligible for a Insurance cover of ₹ 6,00,000 . If he or she has died during serving period EPFO will have to pay a sum of ₹ 6,00,000 to their family members.
- Increase in Gratuity limit : In interim budget 2019 Piyush Goyal has also proposed to double the gratuity limit from ₹ 10,00,000 to ₹ 20,00,000 . He has also proposed to have a minimum bonus of ₹ 7,000 to salaried class.