The highlights of Finance minister Piyush Goyal presented on Friday 01.02.2019 are as under.
* Individual tax payers with income upto Rs. 5 lakh taxable income will get full tax rebate
* Even those earning ₹6.5 lakh will not have to pay tax, if they invest in specified savings
*The threshold for TDS on interest income from deposits with banks and post offices increased from Rs.10000/- to 40000/- u/s 80 TTA. This additional deduction was proposed in lieu of existing deductions of Rs 15,000 for medical reimbursement and Rs 19,200 for transport.
* Threshold for TDS u/s 194-I on rent paid by any non-individuals (e.g corporates etc ) to a resident increased from Rs 1, 80,000 per financial year to 240000 per financial year.
*Tax exemption on long term capital gain on sale of residential house will be available for investment in up to two residential house properties located in India against one earlier. However, this option can be exercised only once in a life time. (The period prescribed for investing the LTCGs in new house properties in India either one year before or two years from the date of sale of the old house. This tax benefit is also available if the tax payer builds a residential house within three years of selling the old house.
*Tax slabs for 2018-19 shall continue for FY 2019-20 for the persons whose taxable income exceeds Rs.5 Lakh. As per the current year (FY 2018-19) slabs, for individuals below 60 years, income up to Rs 2.5 lakh is exempt from tax. Five per cent tax is levied on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh. Cess onTax liabilitis is 4% and for income above 50 Lakh up to 1 crore and above 1 crore surcharge of 10% and 15% respectively applicable on tax liability.
Other important announcements:
- All income tax returns will now be processed in 24 hours and refunds issued simultaneously. Within next 2 years, returns chosen for scrutiny will also be done digitally with anonymity.
- Capital gains tax exemption under Section 54 rose to ₹2 crore.
- Tax on notional rent on unsold inventory to not be paid for 2 years
- Small and marginal farmers owning less than 5 acres of land will receive the first instalment soon. According to the budget speech, about 120 million farm households will receive an income support of ₹2,000, thrice a year. According to Goyal, the scheme will run from 1 December 2018 and towards this the budget has allocated an additional ₹20,000 crore in the revised estimates for 2018-19.
- Apart from the income transfer scheme, the budget also approved doubling the interest subsidy on crop loans, and also raised the interest subvention when farm loans are restructured in times of natural calamity.
- A mega pension scheme to provide assured pension of Rs. 3000 rupees per month to nearly 10 crore people working in largely fragmented informal sector. These informal workers joining the pension scheme at 18 years will pay Rs. 55 per month and Rs. 100 if joining at the age of 29. The pension will be paid once they reached the age of 60.
- Allocation of Rs.750 crore under Rashtriya Gokul Yojana for protection of cows.
- The government will create a separate department for fisheries.