Income tax exemption limit to Rs 5 lakh

New Delhi, Feb 1 Finance Minister Piyush Goyal on Friday doled out tax sops to middle class including doubling of pay income tax exemption limit to Rs 5 lakh and raising standard deduction to Rs 50,000, and gave concessions on interest income from bank deposits and rent.

"People with salary up to Rs 5 lakh won't be required to pay any tax," Goyal said while presenting Interim Budget for 2019-20 in Lok Sabha.

He said with this, people who are earning gross pay of Rs 6.5 lakh every year and have made investment funds instruments, in savings instruments, will be exempt from paying income tax.

"This will give advantage of Rs 18,500 crore rpt crore to 3 crore white collar class citizens independently employed, senior subjects," he stated, including the quantity of recipients will go up for the individuals who have made interests in mediclaim and annuity.

No duty will be deducted on premium earned on bank and mail station stores of up to Rs 40,000 every year, up from Rs 10,000 as of now.

The Budget also proposed to exempt tax on notional rent for unsold housing units for two years.

Goyal also suggested that advantage of rollover of capital tax gains be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains of up to Rs 2 crore.

However, it can be exercised once in a lifetime, he added.

The Income Tax department will move towards faceless assessment and verification of returns, Goyal said Friday.

Standard finding has been raised from Rs 40,000 to Rs 50,000 which will benefit three crore salaried people.