Interim Budget 2019 – Key Highlights and Updates


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.

Author


Team Tax2Win