Assured income to farmers Under Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 per year for each farmer, in three installments, to be transferred directly to farmers' bank accounts, for farmers with less than 2 hectares landholding. He also announced a pension scheme for workers in the unorganised sector with a monthly income of up to Rs 15,000.
The existing income-tax slabs for individuals below 60 years are: up to Rs 2.5 lakh, no tax; Rs 2.5 lakh to Rs 5 lakh, 5 per cent; Rs 5 lakh to Rs 10 lakh, 20 per cent; and above Rs 10 lakh, 30 per cent.
PM Modi said that there has always been a demand to exempt those with annual income up to Rs 5 lakh and Modi government fulfilled it. Income from Rs 3 lakh to Rs 5 lakh is taxed at 5 per cent, and an income from Rs 5 lakh to Rs 10 lakh at 20 per cent and above Rs 10 lakh at 30 per cent. A sum of Rs 75,000 crore was allocated for the scheme by the finance minister.
And, for a family of three comprising husband, wife and a senior citizen, this may result in nearly no tax till a combined income of Rs 25 lakh per year.
There will also be no tax on notional rent on the second self-occupied house and no TDS on house rent up to Rs 2.4 lakh. "As per the present taxation rate, the tax liability up to Rs 5 lakh is Rs 12,500".
For senior citizens aged 80 years and above, income up to Rs 5 lakh was exempt from tax.
This is the election year and there was a fair bit of debate on what the 2019 Budget would look like - the build-up to February 1 had some expectations of tweaks and reliefs for the salaried tax payers especially the middle class.
Shalini Jain, Partner, EY India: "Anyone with net taxable income up to Rs 5 lakh will not be paying any taxes". The standard deduction for salaried persons raised from Rs 40,000 rupees to Rs 50,000.