Interim Union Finance Minister Piyush Goyal presented an Interim Budget for 2019 in Parliament on Friday, 1 February. An Interim Budget usually doesn't list new schemes or unveil any policy measures.
The government will present the vote on account for the next four to five months. A full-fledged Budget will be presented when the House reassembles after the general election.
Goyal was appointed interim finance minister on 23 January.
Here are some of the key points from this year’s budget that will benefit millennials.
1) If you are earning Rs 5 lakh per annum or less, you will not have to pay any income tax at all!
2) In fact, you are a prudent saver and invest Rs 1.5 lakh in PF or other specified instruments, you are not required to pay any tax even with an annual income of Rs 6.5 lakh per year.
3) A standard deduction hike of Rs 10,000 has been proposed which means that an additional maximum saving of Rs 500 every month!
4) If you have fixed deposits in banks and post offices then there is more good news for you. The threshold for tax deducted at source or TDS has been hiked from Rs 10,000 to Rs 40,000. So, some much-needed relief on interest earned on term deposits.
5) If you've been working in an organisation for over four years, then hang on for a bit. After completing 5 years, you will be eligible for a gratuity amount.
Gratuity is calculated like this:
Half of your current salary multiplied by 5. For instance if your salary is Rs 40,000 currently, the gratuity will be 20,000X5 = Rs 1,00,000
And if you have a bigger package, your gratuity will now be capped at Rs 20 lakh, instead of the existing Rs 10 lakh.
6) Here's more incentive for you to file your return on time: Income Tax returns to be processed quickly followed by timely refund in time and no to and fro with tax officials.
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