Published On: Fri, Jul 5th, 2019

Budget 2019: Tax-free on income up to Rs 2.5L, 5% on up to Rs 5L

Finance Minister Nirmala Sitharaman said in her debut Union Budget presentation in Lok Sabha that those individuals who are into the highest income bracket are supposed to contribute more into nation-building.

She has proposed enhancing of surcharge by 3 percent on income of Rs 2-5 crore and 7 percent if it is above Rs 5 crore.

In the income tax slab front, Nirmala Sitharaman has kept individual earning up to Rs 2.5 lakh as tax-free while those earning between Rs 2.5 lakh to Rs 5 lakh will be taxed by 5 percent. For income earned between Rs 5 lakh to Rs 10 lakh the tax will be 20 percent while those making earnings of more than Rs 10 lakh need to pay 30 percent of the income as tax to Modi 2.0 government.

Meanwhile, gold and other precious metals will become costlier as the tax on those has been increased to 12.5 percent from 10 percent.

People who have bikes and cars now need to shell out more on petrols and diesels. The government will now be collecting Rs 1/litre more as special additional duty and road and infrastructure cess.

Budget 2019: Tax-free on income up to Rs 2.5L, 5% on up to Rs 5L

E-vehicles will become a little cheaper now. The GST council has lowered the rate from 12 percent to 5 percent to boost sales of pollution-free vehicles.

About the country’s economy, the FM said, “From 1.85 trillion dollars in 2014, the economy has reached 2.7 trillion US dollars; We can very well reach 5 trillion dollars in the next few years. The Indian economy will grow to become a 3 trillion dollar economy this year itself.”

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at knowledgeherald@gmail.com

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