The minister, while moving the Finance Bill for consideration and passage in Lok Sabha, also took a swipe at the Congress, saying unlike the previous UPA dispensation, the Modi government in its interim budget did not reduce levies of SUVs which were used by rich persons.
In the Finance Bill 2019, the minister proposed to raise tax rebate for people having annual income up to ₹5 lakh from ₹2,500 to ₹12,500, which will effectively ensure that they don't have to pay any tax.
Those having income of up to ₹8-9 lakh too can take advantage of this if they invest in tax saving schemes. In the Bill, standard deduction has also been raised from ₹40,000 to ₹50,000, besides a host of tax benefits to home buyers.
The tax proposals were aimed at helping "poor and middle class people living on tight budget," Goyal said while moving the Finance Bill which contains tax proposals of the government.
The next government, which will be formed after the upcoming general elections, will come out with full budget in July. It will also come up with a Finance Bill containing the tax proposals for 2019-20.
Elaborating on his tax proposals, 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).
The proposal, Goyal added, was welcomed with euphoria within and outside the House and would provide requisite impetus to savings and boost economic growth. He said 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 doubled in the last five years and India had become the fastest growing major economy in the world.
Higher collections, he said, had 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 ₹40,000 to ₹50,000 and hiking TDS limit on interest income from ₹10,000 to ₹40,000 would provide relief to senior citizens.
The housing sector, he added, would too get 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 a house for every citizen when India celebrates its 75th year of Independence. The government's policies have helped in keeping the property prices under check, he said, adding the non-performing assets (NPAs) too have remained low in the sector, probably because "housewives insist that the home loans are repaid in time".
(With inputs from PTI)
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