Current minister of Railways Piyush Goyal presented the interim Union Budget 2019 in Parliament.
Let us see the highlights related to Tax Proposals put forward by the acting Finance Minister.
Key Tax Proposals of Union Budget 2019:
- The existing basic Income Tax slabs remain unchanged
- Section 87A rebate has been increased from Rs 2500 to Rs 12500 where taxable Income does not exceed Rs 5 Lakhs. If the Taxable income exceeds Rs 5 Lakhs the rebate will not be applicable
- The Standard Deductions U/s 16 has been increased from 40000 to 50000
- Tax exempted on notional rent on a second self-occupied house
- TDS threshold to be raised from Rs 10,000 to Rs 40,000 on interest earned on bank/post office deposits U/s 194A
- TDS threshold for deduction of tax on Rent U/s 194I to be increased from Rs. 1,80,000 to Rs. 2,40,000
- Benefit of Exemption U/s 54 is now extended from Investing in one residential property to two residential property, for Capital Gains upto Rs 2 Crore
- Tax benefits for affordable housing extended till 31st March 2020 under Section 80-IBA of Income Tax Act
- Gratuity Taxability limit increased from Rs 10 Lakh to Rs 20 Lakh
- ‘Pradhan Mantri Shram-Yogi Maandhan’ scheme for the unorganised sector workers with monthly income upto Rs 15,000. This pension scheme shall provide them an assured monthly pension of Rs 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age
- Income Tax returns to be processed within 24 hours and refunds will be paid immediately. Within next two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by tax officials
- Tax collections nearly doubled in five years- from Rs. 6.38 Lakh crore in 2013-14 to almost Rs. 12 lakh crore this year
- 80% growth in tax base- from 3.79 crores to 6.85 crores in five years