PROFESSIONAL INSIGHTS

  KEY HIGHLIGHTS 1. INCOME TAX Individual taxpayers with annual income up to 5 lakh rupees. In the Finance Bill, 2019 the maximum amount of tax rebate under section 87A of the Income Tax Act has been proposed to increase to Rs 12,500 from the existing Rs 2,500. This proposed tax rebate will be admissible to taxpayers having total income up to Rs 5,00,000/-. That move is will bring more tax saving for salary class, now the standard deduction of salary increased from Rs 40,000/- to Rs. 50,000/-. 2. TAX EXEMPTIONS ON INVESTMENT Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities. TDS threshold for home rent increased from Rs 1.8 lakh to 2.4 lakh. The threshold on TDS on interest from bank or post office deposits has been increased to ₹40,000, from current limit of ₹10,000. This means interest income on bank/post office deposits up to ₹40,000 will not be subj