1st February 2019 will always be remembered for one of the finest budget of NDA Government. This budget is the blend of economic reforms with political aspirations.
This budget had shown benefits to various sectors of economy. Presented by finance minister Piyush Goyal, who is also a Chartered Accountant, had offered great relief to middle class people and farmers of India.
Here is the complete list of Income Tax amendments you must know for your future tax planning!
Tax rebate for Income up to Rs. 5,00,000
There is no change in Income tax slab for F.Y. 2019-20.
But the tax rebate under section 87A is increased for income up to Rs. 5,00,000. The maximum rebate allowed for individual is raised from Rs.2,500 to Rs.12,500.
The calculation of tax is same as that of before. But now the amount of rebate is allowed for Rs.12,500.
Exemption on notional rent of second self-occupied house property
Earlier when an assessee had two self-occupied house properties, then one house property would be considered self-occupied and other would be assumed as let out.
Now if an assessee have two self-occupied house properties, then no tax will be charged on notional rent calculated on second house property. That means income up to two self-occupied house property will be exempt.
TDS limit hiked from Rs.10,000 to Rs.40,000 on Post office saving account and bank deposit
TDS limit under section 194A is hiked in this Interim budget 2019 from Rs.10,000 to Rs.40,000 for Post office saving account and bank deposits.
Hike in Standard deduction on Salary!
Interim budget 2019 had brought relief to salaried class families in many ways. Other than those mentioned above, one the significant tax benefit to them is the raise in Standard deduction from Rs.40,000 to Rs.50,000.
Raise in maximum limit of withdrawal of Gratuity amount
The maximum limit of withdrawal of gratuity with no tax had raised from Rs.10,00,000 to Rs.20,00,000. This is another benefit for salaried class individuals.
Exemption now available on second house property
Other than benefit available for holding second self-occupied house property which is exempt. Along with it, Section 54 exemption is also available for second house property, provided that capital gain is less than or equal to Rs. 2 crore- to be availed once in the lifetime.
Amendment in Section 194I: Rental Income
No tax shall be required to be deducted on Rent payments made for use of any land or building or furniture or fittings for rental income which do not exceed Rs.2,40,000 per annum. Earlier this limit was Rs.1,80,000 per annum.
If we talk about the Income tax benefits for middle class taxpayers, then this budget had raised the expectation of people on government. This budget can definitely benefit government in the upcoming election season. But any proposal presented by government can be successful only when it is implemented successfully without affecting the nation’s growth track.