Tax exemption for earning up to Rs 5 lakh, says budget
Annual individual income of up to Rs 5 lakh will not be taxed, interim finance minister Piyush Goyal said today, to the thumping of desks and shouts of “Modi, Modi” in Parliament.
Around 3 crore middle-class tax payers will benefit, Goyal claimed, ending the suspense on whether the government would tweak income tax slabs in an interim budget, something that has not been done as a convention.
The other important decision that Goyal announced was directed at farmers after the government was criticised for ignoring the price woes of agriculturists. The government will provide Rs 6,000 per year to a farmer in three instalments under a scheme to be fully funded by the central government. Goyal said the scheme will be 'fully funded by the central government'.
Allocation to MNREGA has been hiked to Rs 60,000 crore for 2019-20, he added.
He further said the government had spent Rs 1.7 lakh crore to supply food grains at cheaper price to poor in 2018-19 as against Rs 92,000 crore in 2013-14.
He also announced a 2 per cent interest subvention for farmers hit by natural calamities, while offering 3 per cent more to them for timely loan payment.
Further, he said the government will provide Rs 750 crore to support animal husbandry and fishing.