NEW DELHI: Individuals with gross income up to ₹9-9.5 lakh will not have to pay any income tax as per the tax rebate announced in interim budget for FY20 if they make use of all tax deductions and investment options, finance minister Piyush Goyal told Lok Sabha.
The lower house passed the Finance Bill on Tuesday retaining the existing income tax rates for FY20 and allowing the tax rebate for those with taxable income upto ₹5 lakh announced in the interim budget.
“If an individual invests ₹1.5 lakh, buys mediclaim policies, invests in the National Pension System, pays interest of ₹2 lakh on home loan, all these taken together, those with (gross) income up to ₹9-9.5 lakh can get the benefit of the tax rebate and be without tax liability," Goyal said in his reply to the discussion on the Finance Bill. “Despite this being the interim budget, we have done something for everyone," Goyal said.
The minister also said that since it was the interim budget, the National Democratic Alliance (NDA) could not bring many tax measures. Goyal said that decision to raise the rebate for people having annual income of ₹5 lakh was to provide greater certainty about tax liability as salary payments to them is subject to tax deduction at source (TDS).
Opposition parties raised questions about whether the interim budget paints an optimistic picture of tax revenue projections for the next fiscal. Kailesh Narayan Singh Deo of BJD in Odisha questioned how the government could achieve an 18% growth in goods and services tax (GST) revenue in FY20 after lowering the projection for FY19. Deo also questioned the practice of one state-run unit buying another, which he said was no disinvestment at all.
During the discussion, tourism minister K.J. Alphons said jobs are being created in the tourism sector and that India’s tourism industry is the fastest growing in the world in terms of foreign tourist visits.
Goyal also tabled the Banning of Unregulated Deposit Schemes Bill aimed at protecting investors from ponzi schemes. The Bill will be taken up for discussion and passage on Wednesday. It seeks to tackle the menace of illicit deposit-taking activities.