New Delhi: A pre-poll budget- an interim one, which was being viewed as a game changer for the Centre, lived up to the expectations and enhanced the government’s efforts at wooing the middle class.  Introduced by the interim Finance Minister Piyush Goyal in the Parliament today, the budget offered many benefits to the middle class- a crucial vote bank ahead of the national polls. However, towering all other points, the major income tax relief announcement, impressed the middle class the most.

Goyal announced that individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate, which triggered a huge applause in the Parliament with the NDA MPs chanting "Modi Modi".

Goyal also said that Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities.

Standard tax deduction for salaried persons has been raised from 40,000 rupees to 50,000 rupees.

Apart from tax reforms, Goyal also introduced relief for home buyers. Benefit of rollover of capital tax gains has been increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 2 crore rupees; can be exercised once in a lifetime.

Goyal said that in order to reduce the burden on home buyers, a request has been made to the GST council and a group of ministers is looking into how to reduce their tax burden.

He also said that small service providers with turnover of about 50 lakhs an pay GST at 6% instead of 18%.

He said that the businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns: FM Piyush Goyal

“GST has been continuously reduced resulting in relief of Rs 80,000 crore rupees to the consumers;  Most items of daily use are now in the 0%-5% tax bracket” Goyal said.

The interim budget which focused primarily on farmers and middle class, was being speculated to be a please-all budget at a time when opposition attacks over high prices, and indifference towards farmers, are stronger.

Also Read: Here is what Budget 2019 holds for women

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