The Lok Sabha on Friday cleared the Finance Bill, 2019 by a voice vote, PTI reported. Finance Minister Piyush Goyal, who moved the bill, said tax-related proposals in the bill are aimed at helping the “poor and the middle-class people living on a tight budget”.
Goyal proposed to raise the tax rebate for people with an annual income of up to Rs 5 lakh from Rs 2,500 to Rs 12,500, which will effectively ensure that they do not have to pay any tax.
Goyal said the decision to raise the rebate for individuals with an annual income of Rs 5 lakh was to provide greater certainty on tax liability as salary payments to them is subject to Tax Deduction at Source.
The bill also proposed to raise standard tax deduction from Rs 40,000 to Rs 50,000 for salaried individuals and tax benefits for home buyers, DNA reported.
Goyal said the government led by Prime Minister Narendra Modi had tried to extend benefits to every section of society and tax payers. He said the tax base in the country has increased and tax collection has increased in the last five years due to the government’s efforts.
“Higher collections, he said, have enabled the government to earmark more resources for the socially and economically deprived sections of the society,” Goyal said.
The finance minister said the housing sector would also get a boost due to proposals including interest subvention, allowing capital gains tax exemption on purchase of two flats from proceeds of sale of a house, and hiking rebate on repayment of home loans.