Finance Union Minister Piyush Goyal on Friday presented the much awaited Interim Budget in Lok Sabha. It is the last budget of the NDA Government before the upcoming Lok Sabha Election.. A full-fledged budget will be presented after the general elections. Here are the key highlights of the Budget:-
1.No tax for individuals having income upto Rs 5 Lakhs. This has come as a big income tax bonanza for middle class individuals. Around 3 crores middle class taxpayers will get tax exemption due to this measure.
2. Thus, rebate under section 87A of the Income Tax Act has been increased from Rs 2,500/- to Rs 12,500/- and shall be admissible to individuals earning income upto Rs 5,00,000
3. Standard deduction increased from Rs 40k to Rs 50k for salaried individuals.
4. Thus individuals with income of Rs 7 Lacs are not required to pay taxes if they make investments in provident fund and prescribed equities.
5. TDS threshold on rent (section 194I) increased from Rs 1,80,000 to Rs 2,40,000. Thus, now monthly rent of Rs 20,000/- is not subject to TDS
6. Ceiling limit of TDS under section 194A has increased from Rs 10,000 to Rs 40,000. Thus interest other than interest on securities paid by Banking Company or Co-operative Society or Post Office is not liable to TDS upto Rs 40,000/-
7.Capital gain tax benefit under section 54 has increased from investment in one residentisal house property to two residential house properties upto a gain of Rs 2 crore and this option can be exercised once in a lifetime.
8. Benefit under section 80IBA has increased to one more year i.e., 2020 thus notional rent on unsold real estate inventory – tax to be levied after 2 years from date of completion of project.
9. There will be no tax on notional rent on second self-occupied house. Thus, an individual can declare nil annual value for two self occupied properties without paying any tax on notional rent on 2nd self occupied house property.
10. Within 2 years tax assessment will be done electronically by an anonymised tax system without any intervention by officials.
11. IT Returns to be processed in just 24 hours and accordingly refunds to be issued.
12. Tax free gratuity limit increased from Rs 10 Lakhs to Rs 20 Lakhs in private sector.
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