Finance Minister Piyush Goyal said in Lok Sabha today that people with income up to Rs 9.5 lakh escape tax liability can escape tax liability if they take advantage of tax saving schemes. The minister was speaking in reply to the debate on the Finance Bill. The Finance Bill was passed in Lok Sabha today with voice vote completing then budgetary process.
Goyal criticized Congress for the budget for the budget presented during UPA era saying that unlike the UPA government, the Modi government did not reduce levies of SUVs which are used by rich persons.
As per the Interim Budget 2019 tax rebate for people having annual income up to Rs 5 lakh have been raised to from Rs 2,500 to Rs 12,500, which will effectively ensure that they don’t have to pay any tax.
Goyal said that because this is the interim budget he did not bring any tax proposal. “This is interim budget. We have not brought any tax proposal…we will bring them in July,” said Goyal.
Goyal said that the the proposal was welcomed within and outside the house and will provide requisite impetus to savings and boost economic growth.
Goyal said that the Modi government during the last four-and-a-half years tried to benefit every section of society and tax payers because of which the tax base in the country increased, the tax collection had doubled in the last five years and India has become the fastest growing major economy in the world.
Goyal said that the proposal to raise standard deduction from Rs 40,000 to Rs 50,000 and hiking TDS limit on interest income from Rs 10,000 to Rs 40,000 will provide relief to senior citizens.
Goyal said that the government is working to ensure house for every citizen when India celebrates 75th year of Independence.
The fiscal deficit during 2018-19 is expected to go up to 3.4 per cent of the GDP as against the target of 3.3 per cent.
The Minister said that he has prepared a honest budget because as a chartered accountant he could have made some adjustments to keep the fiscal deficit to the targeted level of 3.3 per cent of the GDP for 2018-19, but did not indulge in window dressing.