Confirmed- People with annual income upto Rs 9.5 lakh can escape tax liability, says Goyal

Stressing that tax concessions have been provided with a view to help poor and middle class people living on a tight budget, Finance Minister Piyush Goyal on Tuesday said that now individuals earning up to Rs 9.5 lakh can escape liability by taking advantage of saving schemes.

Replying to the debate on the Finance Bill in Lok Sabha, the Minister said he did not propose any change in the tax rate but only provided few rebates which will boost spending and help the economy.The Finance Bill, which contains tax proposals, was passed by the Lok Sabha with voice vote, completing the budgetary process in the lower house.

The concessions proposed in the Finance Bill, Goyal said, are aimed at helping "poor and middle class people living on tight budget...This is interim budget. We have not brought any tax proposal...we will bring them in July," he said.

He said that the Modi government during the last four- and-a-half years tried to benefit every section of society and tax payers.As a result, he said, 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.

Higher collections, he said, has enabled the government to earmark more resources for the socially and economically deprived sections of the society.

The Minister 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.

The housing sector, he added, will too get a a boost on account of the proposals including interest subvention, allowing capital gains tax exemption on purchase of two flats from proceeds of sale of a house and hiking rebate on repayment of home loans.

The government, he added, was working to ensure house for every citizen when India celebrates 75th year of Independence.The government policies have helped in keeping the property prices under check, he said, adding the non- performing assets (NPAs) too has remained low in the sector, probably because "housewives insist that the home loans are repaid in time."