The biggest news currently is coming from the parliament where the Finance minister has announced full tax rebate for the people who earns upto Rs 5 lakh per annual. He also announced the standard deduction for the same segment to R 50,000 from the current Rs 40,000.

This big decision will provide relief to around 3 crores tax payers who belongs to the middle class. It will provide relief of more than Rs. 23,000 crore tax relief.

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Other more deductions like National Pension Scheme contributions, interest on home loan up to Rs. 2 lakh, medical insurance and medical expenditure on senior citizens, interest on education loans, etc are also provided in the Budget 2019.

The government also raised exemption on tax deducted at source (TDS) on interest earned from the banks and post office savings raised to Rs 40,000 form the current Rs 10,000.

It is announced tax benefit of Rs. 18,500 crore is proposed to be provided to around 3 crore middle class and small taxpayers people.

“Because of major tax reforms undertaken by us during the last four and half years, both tax collections as well as the tax base have shown significant increase and we have made progress towards achieving a  moderate taxation–high compliance regime. It is, therefore, just and fair that some benefits from the tax reforms must also be passed on to the middle class taxpayers. Keeping this in view, I propose to further reduce the tax burden on such taxpayers. Though as per convention, the main tax proposals will be presented in the regular budget, small taxpayers especially middle class, salary earners, pensioners, and senior citizens need certainty in their minds at the beginning of the year about their taxes. Therefore, proposals, particularly relating to such class of persons should not wait,” FM Piyush Goyal said in his speech at the parliament proposing Budget 2019.

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