When Narendra Modi took over the office in 2014, the middle class and common people had one hope in mind – reduce the tax burden. Before Union Budget in 2014, the income tax exemption limit was Rs 2 lakh. Today people earning Rs 5 lakh have to pay zero income tax. From Rs 2 lakh to Rs 5 lakh – we have come a long way. On July 5, Finance Minister Nirmala Sitharaman will present first Union Budget of the Narendra Modi government’s second tenure. The middle class still needs more relief as they are the backbone of the country’s economy and honest tax payers.
So before the Union Budget 2019, take a look at how previous budgets provided tax relief to the common man:
Union Budget 2014
Soon after storming to power with a thumping majority, then finance minister Arun Jailtey presented maiden budget of the Narendra Modi govenrment. In the budget, Jaitley gave major tax relief to the middle class by increasing the exemption limit from Rs 2 lakh to Rs 2.5 lakh. The income tax exemption limit for senior citizen was raised from Rs 2.5 lakh to Rs 3 lakh.
Union Budget 2015
In Narendra Modi government's second budget, deduction limit on health insurance premium was increased from Rs 15,000 to Rs 25,000. For senior citizens, it was increased to Rs 30,000 from Rs 20,000. The exemption on transport allowance was also increased from Rs 800 to Rs 1,600. An additional deduction of Rs 50,000 for National Pension Scheme (NPS) was also announced in the Union Budget 2015.
Union Budget 2016
Then Finance Minister Arun Jaitley increased the tax rebate to Rs 5,000 from Rs 2,000 for people whose annual income was not in excess of Rs 5 lakh. The deduction limit on house rent was also increased from Rs 2,000 per month to Rs 5,000 per month.
Union Budget 2017
The tax rate on Rs 2.5 lakh - Rs 5 lakh slab was reduced from 10 per cent to 5 per cent. The income tax on those earning annual income up to Rs 3.5 Lakh was reduced to Rs 2,500 from Rs 5,000.
Union Budget 2018
Arun Jaitley, in his last budget, announced to increase the deduction on income from interest on bank and post office deposits from Rs 10,000 to Rs 50,000 for senior citizens. An exemption from deduction for tax on interest income up to Rs 50,000 was also announced. The Modi government also promsied to replace the 3 per cent education cess on personal income and corporation taxes with a 4 per cent 'Health and Education Cess'.
Interim Budget 2019:
Due to health reasons, Arun Jailtey could not present the vote on account and Union Minister Piyush Goyal was given the responsibilty to present the last budget of Narendra Modi government before the national elections. With elections ahead, the budget was expected to be people's friendly and it turned out as expected. The acting finance minister announced full tax rebate for those earning up to Rs 5 lakh per annum. Standard deduction for salaried class was also raised to Rs 50,000 from Rs 40,000.