02
Feb

#BugdetHighlights2019 (Interim)

Tax

1. No tax on taxable income upto 5 lakh 

Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate. Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities. Around 3 crore middle class taxpayers will get tax exemption due to this.

2. Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees

3. TDS threshold on interest on bank and post office deposits raised from 10,000 to 40,000 rupees.

4.TDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees.

5. Benefit of rollover of capital tax gains to be increased from investment in one residential house to that two residential houses, for a taxpayer having capital gains up to 2 crore rupees; can be exercised once in a lifetime.

6. Exemption from tax on second self-occupied house

7. Within 2 years, Tax assessment will be done electronically

8. Minimum 14% revenue of GST to states by Central Govt.

8. Recommendations to GST council for reducing GST rates for home buyers

9. Exempt on tax on second self-occupied house

Other

10. Proposal to launch “Pradhan Mantri Kisan Samman Nidhi” (PM-KISAN) whereby  landholding  farmer having cultivable land upto 2 hectares will be provided direct income support at the rate of INR 6,000 per year with an annual expenditure of INR 75,000 crore which will be funded by the Government.  

11. Farmers affected by severe natural calamities (where assistance has been provided by National Disaster Relief Fund) shall be provided benefit of interest subvention of 2% and additional interest subvention of 3% as prompt repayment initiative for  entire  period  of  reschedule  of loan.

12. Tax free Gratuity limit increase to 20 Lakhs from 10 Lakhs

13.For the purpose of providing comprehensive social security coverage  for   old  age  of   unorganized  sector  workers earning monthly income upto INR 15,000, Government has proposed the launch of “Pradhan Mantri Shram-Yogi Maandhan” which shall provide said workers with assured monthly pension of INR 3,000 per month from the age of 60 years on small monthly contribution ranging from INR 55-100.