Budget Proposals And Its Implications

This being election year, interim Budget was presented by Mr. Piyush Goyal on February 1, 2019. Contrary to expectations, very few announcements were made and the best part of the interim Budget is that no negative proposal was made which could impact the common man adversely.

- Anil Chopra

All proposals made are positive only and these are explained below.

1. Relief for Individuals having total taxable income up to Rs.5 lakhs

Please note that there is no change proposed in the income tax slabs. Minimum exemption limit continues to remain at Rs.2.5 lakhs. Calculation of income tax liability will be exactly the same as in the previous year i.e. 2018-19. The only difference is that all individuals whose annual taxable income is up to Rs.5 lakhs will claim 100% tax rebate. In other words, their tax liability will be Nil or Zero. There is no relief for taxpayers whose net taxable income exceeds Rs.5 lakhs.

This marginal relief will be available to over 4 crore individual taxpayers whose income is below Rs.5 lakhs.