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Budget 2019
- 1. BUDGET 2019 CA SURBHI CHAUDHARI
- 2. Rebate Under Section 87A PRESENT if Net Taxable Income (after considering deduction u/s 80C or any other deduction) is not exceeding Rs.3.5 Lakhs then rebate of Rs.2500/- is given u/s 87A as tax relief to tax payers PROPOSED if Net Taxable Income (i.e. after considering all deductions 80C/80D etc or any other deduction) is not exceeding Rs. 5 Lakhs then rebate of Rs.12,500/- will be given u/s 87A as tax relief to such tax payers NOTE : Basic Exemption limit is still same i.e Rs. 2.5 Lakhs
- 3. Example Particulars 1 2 3 Gross taxable income 650000 650010 750000 LESS: Deduction u/s 80 150000 150000 150000 Net taxable income 500000 500010 600000 Tax on above 12500 12502 32500 Less:Rebate U/s 87A 12500 -- -- Tax Payable(excluding cess) nil 12502 32500
- 4. Standard Deduction Increased to Rs.50,000/- from Rs.40,000/- PRESENT During last year budget Standard Deduction of Rs.40,000/- was introduced by withdrawing benefits in respect of Conveyance Allowance and Medical Allowance to Salaried People. PROPOSED In this budget in order to provide slight relief to Salaried class people, limit is enhanced to Rs.50,000/-that means whatever you are earning as salary your salary will be reduced by Rs.50,000 straightaway for computing tax.
- 5. No notional rental income required to be offered on Second house. PRESENT Earlier the benefit of self occupied (Annual value – Nil) was available to only one house property. The second house property in the name of same assessee which was self occupied (either by him or his family) was to be taxed by arriving at a notional rent under the head income from house property. PROPOSED Considering the difficulty of the middle class having to maintain families at different locations on account of job, parents or any other reason, it is proposed in this budget to exempt the levy of income tax on notional rent on second self-occupied house also.
- 6. Section 54 Capital gain exemption now extends to two house properties PRESENT Section 54 provides exemption for long term capital gains arising out of sale of residential house property. This exemption is available if such capital gains are invested in another residential property. PROPOSED Now the assessee is allowed to invest in two residential house properties provided the capital gain arising out of the sold property is up to Rs. 2 Crores. This exemption by investing in two residential house properties is a one time opportunity and can be exercised only once in a life time.
- 7. Limit on deduction of TDS on interest earned from Banks and Post office has been increased PRESENT Sec 194A :The Bank/Post office cooperative society shall deduct TDS if the amount of such interest paid or credited OR is likely to be paid or credited in a financial year exceed 10,000 (50,000 in case of senior citizen) PROPOSED bank and post office will no longer deduct any tax if the interest income from your deposits is up to Rs 40,000, as opposed to Rs 10,000 earlier. NOTE : in respect of other interest income TDS deduction limit is still same i.e. Rs.5000/-
- 8. TDS on Rent limit enhanced from Rs.1,80,000/- to Rs. 2,40,000/- PRESENT SEC 194 I :The person (other than individuals and/or HUFs who are not subject to tax audit) who is responsible for paying of rent is liable to deduct tax at source. in case the aggregate of the amount of rent credited or paid or likely to be credited or paid during the financial year exceeds Rs. 1,80,000/- PROPOSED TDS threshold for deduction of tax on rent is increased from Rs. 1,80,000 to Rs. 2,40,000 for FY2019-20.
- 9. THANK YOU