Finance Minister Mr. Piyush Goyal has presented interim budget on 1st Feb,2019. Below mentions are key budget Proposals / Highlights:
1.0 Tax Rates:
There is not change in tax rates or tax slab for individual tax payers
2.0 Standard Deduction
In 2018, Standard deduction was bough back with Rs. 40,000 . Now same is increased to Rs.50,000 .This will give tax benefit of Rs.3,588 for tax payer in highest tax slab.
3.0 Tax Rebate
It is proposed to provide tax rebate up to Rs.12,500 for taxable income equal to or less than Rs.500,000 . There is difference between deduction and tax rebate. Deduction is available from total income . e.g. Life insurance premium however in case of tax rebate , you have to calculate total tax and need to claim rebate u/s 87A by way of filing Income tax return. This is to make sure that tax payer file their returns. This is great relief to tax payer . Actual tax payable or Rs.12,500 whichever is less can be claimed as rebate in case taxable income is equal to or less than Rs.500,000 .
4.0 No Notional rent for second house:
Until now in case second house is not given on rent still need to offer it as income as notional rental however with this budget up to two house properties , no notional rental will be applicable . This is great relief to tax payers who own two houses but second house is not actually let out.
5.0 Capital on sale of House can be invested in two houses:
In case of Long term capital gains arising to individual or HUF from sale of house of property is now exempted in case capital gain is up to Rs.2 crores and invested in two houses instead of one . This option is available only once in life time of tax payer .
6.0 Increase in threshold limit for TDS from interest on bank and post deposits:
In case interest on deposit is paid by banking company , co-operative society or post office, It is proposed that from 01st Apr,2019 , to deduct TDS in case it exceeds Rs.40,000 in place of Rs.10,000 (other than senior citizen). In case of senior citizen it is kept at Rs.50,000. In case of any other type of interest, threshold is Rs.5,000 .
7.0 Increase in threshold limit in case of rental payment:
Current threshold limit of Rs.1,80,000 is increased to Rs.2,40,000 u/s 194-I to deduct tds on rental payment .
8.0 Tax Assessment online
It is proposed that within the next two years, almost all verification and assessment of returns selected for scrutiny will be done electronically through anonymised back office, manned by tax experts and officials, without any personal interface between taxpayers and tax officers .