🤔 Cool Title, but what’s the news?
Finance Minister Piyush Goyal has proposed that individuals with income upto Rs 5 lakh will not have to pay any income tax for FY2019-20.
😕 Okay, but what does it mean?
Now, if your annual salary falls within 5 lac rupees, you are not required to pay any tax. Moreover, if you can make additional 1.5 lac worth of investments under Section 80C, your income up to 6.5 lac can be effectively made tax-free.
🧐 Why should I care?
Well, less tax means more money for you!
As an added benefit, this provides a lot of benefits for the middle class tax payers. This move will bring more tax savings for the salaried class. Prior to the Budget, there were rumours that the Narendra Modi government was looking at options to give income tax benefits to the middle class.
There will be a full tax rebate for the relevant individuals.