Interim Budget 2019 – Key Highlights and Updates


(Last Updated On: August 3, 2019)

Most important points related to common people –

  • In the span of 2 years Tax assessment shall be done completely online
  • IT returns processing and refund issue shall be concluded in just 24 hours
  • Complete Tax rebate upto Rs. 5 lakh annual income after all deductions, which will give tax benefit upto Rs 12,500
  • Standard deduction limit has been increased from 40000 to 50000
  • Tax on the second self-occupied house has been exempted from levy of Income Tax
  • Tax-free Gratuity limit increase from Rs 10 Lakhs to Rs 20 Lakhs

Important to note that

  • The threshold limit of Rs 2,50,000, Income Tax Slabs and Income Tax Rates remain unchanged.
  • The Rebate u/s 87A has increased from Rs 2,500 to Rs 12,500. Also, the eligibility of total income for 87A increased from Rs3,50,000 to Rs5,00,000.
  • In nutshell, the effective benefit has been provided to only those taxpayers whose total income chargeable to tax does not exceed Rs5,00,000.
  • The moment income exceeds Rs5,00,000 taxation at normal slab rates shall follow. i.e. No tax on Rs 2,50,0000, for Rs 2,50,0000 to Rs5,00,000 tax @ 5%, Rs5,00,000 to Rs. 10,00,000 tax @ 20% and above Rs. 10,00,000 [email protected] 30% shall still be charged.
  • TDS u/s 194A for interest from bank and post office saving bank accounts etc, the limits have increased 4 times. i.e. from existing  Rs 10000 to  Rs 40000
  • TDS u/s 194I for rent now needs to be deducted if annual rent amount exceeds Rs 2,40,000 which was earlier Rs 1,80,000.
  • Capital Gain benefit on investment u/s 54 can now be availed on two residential house property once in the lifetime for people with capital gain upto Rs.2 crore.
  • Benefit u/s 80 IBA for affordable housing has been extended to another one year i.e. upto 31 March 2020
  • Benefit on unsold inventory has increased from one year to two years.

Related to GST Law

  • Center to give minimum 14% revenue of GST to states.
  • 36 Capital Goods are now outside the levy of Customs Duty.
  • Committee for analyzing reduction in GST rates for home buyers has been constituted.

OTHER AREAS

  • A farmer having up to two-hectare land will be given Rs.6000 annually. Amount to be directly credited to the bank in three equal installments of Rs 2000 each starting from Sep 2018.
  • State share has increased to 42%
  • PCA restriction has been abolished from 3 (three) major banks
  • For the reservation of 10%, 2 lakhs seats will increase
  • 60,000 crores allocated for Manrega Scheme
  • Allocation of Rs 1.7 Lakh crore to ensure food for all
  • Haryana to have 22nd AIIMS opening up soon
  • PM Kisan Yojana to seek approval
  • National kamdhenu ayog for cows introduced
  • Rs. 750 crores attributed for National Gokul Mission.
  • 2% interest subvention announced for farmers pursuing animal husbandry and also create a separate department for fisheries.
  • 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for those making timely payment.
  • Interest relief @ 2% is also announced for MSME GST registered person
  • Now Single window approval for India filmmakers too
  • India to have One lakh digital villages in next 5 years
  • Allocation of More than  Rs 3 Lakhs crores for defense
  • To uplift women empowerment 26 weeks of Maternity Leaves provisioned
  • The government has delivered 6 crores free LPG connections under Ujjawala scheme
  • Assured monthly pension of Rs. 3,000 for workers in the unorganized sector. The pension scheme is called Pradhan Mantri Shram Yogi Mandhan yojana.

Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.