New Delhi, February 1: Central government employees, who get salary as per the 7th Pay Commission recommendations, will get tax relief and hike in gratuity as announced in the interim budget 2019 presented by union finance minister Piyush Goyal. Though the government did not raise minimum pay beyond the recommendations of the 7th Pay Commission, it raised the income tax exemption limit and gratuity that will benefit central government employees as well.

Presenting the interim budget, Goyal announced to raise the income tax exemption limit to Rs 5 lakh from the current Rs 2.5 lakh. Hence, central government employees having annual income up to Rs 5 lakh, under the 7th Pay Commission, will not have to pay any tax. "An estimated 3 crore middle class and small taxpayers comprising self-employed, small business, small traders, salary earners, pensioners and senior citizens," Goyal announced. Budget 2019 Highlights: Interim Budget Brings Cheers For Middle Class, Farmers & Labourers.

Goyal also proposed to raise Standard Deduction from the current Rs 40,000 to Rs 50,000. "This will provide an additional tax benefit of Rs 4,700 crore to more than 3 crore salary earners and pensioners," the finance minister said. Goyal also proposed to raise free gratuity limit to Rs 20 lakh from Rs 10 lakh. Central government employees, who get salary as per the 7th Pay Commission recommendations, can avail the benefits of these measures. New Tax Slabs After Budget 2019: If Your Income Is Rs 5 Lakh, 7.5 Lakh or 10 Lakh, Here's The Amount You'll Have to Pay.

Tax Deduction at Source (TDS) threshold on interest earned on bank/post office deposits has been proposed to be raised from Rs 10,000 to Rs 40,000. "This will benefit small depositors and non-working spouses," Goyal said. Further, the TDS threshold for deduction of tax on rent has also been proposed to be increased from Rs 1,80,000 to Rs.2,40,000 for providing relief to small taxpayers.

Watch Interim Budget 2019 Highlights:

Goyal also proposed to increase the benefit of rollover of capital gains under Section 54 of the Income Tax Act from investment in one residential house to two residential houses for a taxpayer having capital gains up to Rs 2 crore. This benefit can be availed once in a lifetime.

(The above story first appeared on LatestLY on Feb 01, 2019 05:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).