Union Budget 2019: Standard deduction limit raised to Rs 50,000; how it helps salaried class

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Updated: Feb 01, 2019 4:32 PM

India Union budget 2019: In a move that may cheer the salaried class, Finance Minister Piyush Goyal on Friday hiked standard deduction limit to Rs 50,000 from Rs 40,000, at present.

Budget 2019-20Budget 2019-20: The deduction of Rs 40,000 was introduced in lieu of medical reimbursement and transport allowance.

Union Budget 2019: In a move that may cheer the salaried class, Finance Minister Piyush Goyal on Friday hiked standard deduction limit to Rs 50,000 from Rs 40,000, at present. It was in Budget 2018, the concept of standard benefit from salary was introduced.

The deduction of Rs 40,000 was introduced in lieu of medical reimbursement and transport allowance. Currently, the benefit of standard deduction can be claimed both the salaried class and pensioners who receive pension directly from their previous employers.

Also read: Live Budget 2019, Union Budget 2019 Live news Income tax slab: Tax deduction to middle-class to cash transfer for farmers, Modi govt’s big announcements ahead of Lok Sabha polls

Finance Minister his interim budget speech also announced that the individuals with income up to Rs 5 lakh will get a full tax rebate. This essentially means that individuals earning an annual income of Rs 5 lakh will not be required to pay income tax.

The Modi government’s sixth union Budget and first Interim budget is crucial given that it is taking place months ahead of the Lok Sabha elections 2019. The Economic Survey 2019 was not presented this time.

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