New Delhi, January 31: The Narendra Modi government will present its last budget on February 1. As Lok Sabha Elections are around the corner, so it will be an interim budget. Union minister Piyush Goyal will table the budget. The Bharatiya Janata Party (BJP) government led by Prime Minister Modi presented its first budget in July 2014, after coming to power. In that budget, the BJP government increased the tax exemption limit to Rs 2.5 Lakh from Rs 2 lakh as compared to the 2013 budget presented by the previous United Progressive Alliance. Budget 2019: Govt Likely to Announce Interest-Free Loans, Premium-Free Insurance for Farmers.

In the budget 2014, the 10 percent income tax was charged on income exceeding Rs 2.5 lakhs upto Rs 5 lakhs. Meanwhile, 20 percent income was charged on the income exceeding Rs 5 lakh upto Rs 10 lakh and 30 percent tax was charged on income exceeding Rs 10 lakh. For citizens from age group 60-80 years, no tax was charged on income upto Rs 3 lakh and from 3 lakh to 5 lakh, 10 percent of tax was charged. Similarly, 20 percent tax was charged on income exceeding Rs 5 lakh upto 10 lakh and 30 percent for income exceeding 10 lakh for citizens between 60-80 years. Meanwhile, limit of taxable income was increased to Rs 5 lakh for citizens above 80 years of age and rest of the tax slab remains the same. Budget 2019: Date, Time, Expectations and Where to Watch Live Streaming of Interim Budget.

Income tax slabs in 2014-15:

Income Slabs (Indivdual of HUF) Tax Rates Income Slabs (resident & above 60 years but below 80 years) Tax Rates Income Slabs (resident & above 80 years) Tax Rates
Total income up to Rs. 2.5 Lac NIL Total income up to Rs. 3.00 Lac NIL NA NA
Total income exceeds Rs. 2.5 Lac but less than Rs.5 Lac 10% on amount exceeding Rs. 2.5 Lac Total income exceeds Rs. 3 Lac but less than Rs.5 Lac 10% on amount exceeding Rs. 3.00 Lac Total income up to Rs. 5 Lac NIL
Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 25,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 20,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

The Modi government present its last full-time budget in February 2018. The tax exemption limit remained the same as the 2014 budget. However, the income tax on income exceeding 2.5 lakh upto Rs 5 lakh was reduced to five percent as compared to the first budget of the BJP government, while rest of the tax slabs remain the same. In addition to the four tax slabs, 10 percent surcharge was imposed on 30 percent tax on the income between 50 lakh to 1 crore and 15 percent surcharge on income above Rs 1 crore. For citizens between age group 60-80 years and above 80 years, there were no changes in the tax slab.

Income tax slabs in 2018-19:

Income Slabs (Indivdual of HUF) Tax Rates Income Slabs (resident & above 60 years but below 80 years) Tax Rates Income Slabs (resident & above 80 years) Tax Rates
Total income up to Rs. 2.5 Lac NIL Total income up to Rs. 3.00 Lac NIL NA NA
Total income exceeds Rs. 2.5 Lac but less than Rs.5 Lac 5% on amount exceeding Rs. 2.5 Lac Total income exceeds Rs. 3 Lac but less than Rs.5 Lac 10% on amount exceeding Rs. 3.00 Lac Total income up to Rs. 5 Lac NIL
Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 25,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 20,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

In the interim budget 2019, the government is likely to announce a relief package for farmers including interest-free farm loans and premium-free crop insurance. The government is also considering cash handout to farmers through Direct Benefit Transfer (DBT) by subsuming the various subsidies given to the farmers on seeds, fertilizers, farm equipment, various government schemes and power. There are also speculations that the government might raise the tax exemption limit.

(The above story first appeared on LatestLY on Jan 31, 2019 09:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).