Changes in income tax from 2014 to 2019
In the interim budget presented for the financial year 2019-20, the Finance Minister gave various announcements while giving relief to the middle class. The biggest announcement in this is the change in income tax slab.
Finance Minister Piyush Goyal announced changes in Income Tax (Income Tax) during the Interim Budget-2019-20. In the interim budget presented for the financial year 2019-20, the Finance Minister gave various announcements while giving relief to the middle class. The biggest announcement in this is the change in income tax slab.
Under the new announcement of the Finance Minister, the tax has been exempted up to 5 lakh rupees. All income tax rates have been kept unchanged. Apart from this, the annual income upto Rs 6.50 lakh has been kept under the ambit of tax exemption provided that such people have got public provident fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC) under Section 80C of Income Tax, And insurance scheme etc. Under this, there is a provision for tax relief of up to 1.5 lakh rupees. This has been variously announced during the last five years which are as follows:
Budget 2014-15
In this budget, the limit for exemption of income tax was increased from 1 lakh to 2.5 lakhs. At the same time, the tax exemption limit was up to Rs 3 lakh for senior citizens of more than 60 years and below 80 years of age. Simultaneously, the tax exemption limit on investment under Section 80C of the Income Tax Act was also increased from Rs 1 lakh to 1.5 lakh rupees. At the same time, the people of the middle class had been increased from Rs 1.5 lakh to Rs 2 lakh on the interest of the housing loan under section 24.
Budget 2015-16
The present government has not made any major changes in personal income tax slabs and rates in its second budget. However, there were some announcements that helped salaried classes save more tax on investment. In the budget of 2015-16, the government had announced a tax exemption of additional 50 thousand rupees on investment in NPS under Section 80CCD (1b) to make the National Pension System (NPS) more attractive. This section was different from the tax exemption of Rs 1.5 lakh received under 80C. Sukanya Samrudhi Yojana was also brought under the purview of tax exemption as per PPF. Prior to the announcement of the budget, tax was available under section 80C on the amount of investment in Sukanya Samrudhi Yojana, but there was provision of tax on earnings and withdrawals from it.
Budget 2016-17
In this budget, surcharges were increased by 3 percent to high networth individuals (HNIs), ie, annual earnings of more than Rs 1 crore, and reached 15 percent. Apart from this, the people living in the rented house who do not have House Rent Allowance (HRA) in their salaries, the limit of tax exemption was increased from Rs 24 thousand to 60 thousand rupees on rent under section 80GG . At the same time, small and marginal taxpayers with annual income of less than Rs 5 lakh were given relief of up to Rs 2 thousand 5000 on income tax.
Budget 2017-18
In this budget, the rate of tax on personal income ranging from Rs 2.5 lakh to Rs 5 lakh was reduced from 10 percent to 5 percent. This has saved tax payers more than Rs 12,500. On the other hand, a new provision of 10 percent surcharge was made on tax for people earning between Rs 50 lakh and Rs 1 crore annually.
Budget 2018-19
In the last year's budget, the Modi government paid Rs 40,000 for salaried class and pensioners. Announced the return of standard deduction, but in return exempted tax rebates on medical reimemberments and transport allowances. This raises additional tax savings of tax of Rs 5,800 to taxpayers. In the budget of fiscal year 2018-19, tax was increased by 1 percent cess. This has increased from 3% to 4% from last year. In this budget, 10 percent Long Term Capital Gains (LTCG) tax was applied with Indexation Benefit on capital gains of more than Rs. 1 lakh in a financial year.
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