Breaking! Income Tax exemption limit raised in Budget

The Modi government has given a sop for the salaried class.  The Income Tax exemption limit has been raised to Rs 5,00,000. This comes as a big boost as it’s expected to boost consumption.  Politically, it’s important for the BJP in an election year to win over the hearts of the middle class, especially in urban and semi-urban areas.

“As Piyush Goyal now puts it, people earning up to Rs 6.5 lakh don’t have to pay any tax if they invest well. And with other exemptions for home loans, college loans, etc, even those earning up to Rs 8.5 lakh, maybe even more, will not have to pay any tax at all,” writes Sukumar Ranganathan, an editor.

“The Budget is unquestionably Pro-Growth, Fiscally prudent, Pro-Farmer, Pro-Poor and strengthens the purchasing power of the Indian Middle Class. Between 2014-19, every Budget has given significant relief to the Middle Class,” said Arun Jaitley.

The Budget is being presented today by interim Finance Minister Piyush Goyal.

“For the first time ever in my living memory tax-paying middle classes have been recognised by Govt through word and deed. The huge income tax exemption is a big relief,” wrote Kanchan Gupta, welcoming the decision to raise income tax exemption limit.