BUDGET UPDATES 2019

 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 subject to TDS.
• Onetime benefit of Capital gains tax exemptions under Section 54 to be available up to Rs 2 crore. Capital gains exemption to be available on 2 house properties.
• Income tax relief on notional rent from unsold houses extended to 2 years from 1 year.
• Exemption from notional rent in respect of two self-occupied house properties. Currently, if a person has two properties which are self-occupied, deemed rent from one of the house properties is taxable.

3. GOOD & SERVICE TAX (GST)

• Group of Ministers to suggest ways to reduce GST for house buyers.
• Direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore; The tax base is up from Rs 3.79 crore to 6.85 crore.
• Businesses with less than Rs 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns.
• Indian Customs to fully digitised exim transactions and leveraging RFID for logistic. Govt abolishes duties on 36 capital goods.
• GST collections in January 2019 has crossed Rs 1 lakh crore.