What Interim Budget 2019 offers a Common Man!
The stand-in Finance Minister Piyush Goyal recently announced the 2019 interim budget. From tax exemptions to changes in capital gains, it’s been said that this budget can bring along many benefits for the common man.
1. No tax on income up to ₹ 5,00,000 per annum.
The current 2018 budget relieves taxpayers with an annual income of up to ₹ 2,50,000 from paying tax where else the proposed 2019 budget raises this to ₹ 5,00,000.
This benefit will be available in the form of rebates only to individuals with an income up to ₹ 5,00,000. If the income goes above that, 5% tax will be applied starting ₹ 2,50,000 to ₹ 5,00,000 and a 20% tax will be applied between ₹ 5,00,001 and ₹ 1 Million.
The stand-in finance minister Piyush Goyal also mentioned that a person having an annual income of more than ₹ 2,50,000 could also be exempted of taxes if they invest in provident funds, specific savings and insurance etc.
Cedrus Wealth Partners
The big takeaways -
The current 2018 budget relieves taxpayers with an annual income of up to ₹ 2,50,000 from paying tax where else the proposed 2019 budget raises this to ₹ 5,00,000.
This benefit will be available in the form of rebates only to individuals with an income up to ₹ 5,00,000. If the income goes above that, 5% tax will be applied starting ₹ 2,50,000 to ₹ 5,00,000 and a 20% tax will be applied between ₹ 5,00,001 and ₹ 1 Million.
The stand-in finance minister Piyush Goyal also mentioned that a person having an annual income of more than ₹ 2,50,000 could also be exempted of taxes if they invest in provident funds, specific savings and insurance etc.
2. No tax deduction at source (TDS) deposit increased to ₹ 40,000
TDS on interest received from banks and post office deposits will be applicable only on amounts of above ₹ 40,000. Earlier, this was applicable on amounts above ₹ 10,000.
3. No TDS on house rent up to ₹ 2,40,000
The earlier limit to this exemption was ₹ 1,80,000 which is now proposed to be increased to ₹ 2,40,000. This will affect many people living in rentals.
4. No 'notional rent' on two self-occupied properties
Previously, notional rent was applicable to all the properties except one, irrespective of the fact on who stays in the property. In the proposed budget, notional rent will not be applicable on two properties occupied by the same family.
5. Capital gain exemption extended to purchase of two residential houses
Exemption from Capital Gain on the sale of residential house under Section 54 has been extended to purchase of 2 residential house subject to maximum capital gain of ₹ 20 million.
TDS on interest received from banks and post office deposits will be applicable only on amounts of above ₹ 40,000. Earlier, this was applicable on amounts above ₹ 10,000.
3. No TDS on house rent up to ₹ 2,40,000
The earlier limit to this exemption was ₹ 1,80,000 which is now proposed to be increased to ₹ 2,40,000. This will affect many people living in rentals.
4. No 'notional rent' on two self-occupied properties
Previously, notional rent was applicable to all the properties except one, irrespective of the fact on who stays in the property. In the proposed budget, notional rent will not be applicable on two properties occupied by the same family.
5. Capital gain exemption extended to purchase of two residential houses
Exemption from Capital Gain on the sale of residential house under Section 54 has been extended to purchase of 2 residential house subject to maximum capital gain of ₹ 20 million.
The proposed budget clearly concentrates on providing many tax-related benefits to the middle-class population of the country. However, since this is an interim budget, there are still chances of the following decision being stalled.
To get in touch with us, visit cedruswealth.com
To get in touch with us, visit cedruswealth.com
Pune, Maharashtra.
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