Budget For The Common Man: Key Income Tax Changes Announced In Past Budgets

Union Budget 2020: The government has made a few changes in the income tax rules over the past few years.

Budget For The Common Man: Key Income Tax Changes Announced In Past Budgets

Finance Minister Nirmala Sitharaman will present the Union Budget for 2020-21 in Parliament on February 1. Just like every year, financial experts and the common man will eagerly monitor any announcements on taxes. From changes in income tax rates to the reintroduction of standard deduction and a higher income threshold for rebate, the government has made a few changes in the income tax rules over the past few years. (Also read: Can you expect income tax changes in Budget? Here's what experts say)

Here's a brief description of key tax changes announced in the Union Budget since 2014:

June 2019

  • TDS (tax deduction at source) of 2% for cash withdrawals exceeding Rs 1 crore per year
  • Relief in securities transaction tax (STT)
  • Companies with annual turnover of Rs 400 crore to be under 25% tax bracket
  • Customs duty on steel raised to 7.5% from 5%
  • To increase customs duty on gold and precious metals to 12.5%

February 2019

  • Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate
  • No tax on income up to Rs 5 lakh a year
  • No tax on income of Rs 5 lakh-Rs 6.5 lakh if investments made
  • Standard deduction raised to Rs 50,000 from Rs 40,000
  • TDS threshold on interest from bank deposits, postal savings raised to Rs 40,000 from Rs 10,000
  • TDS threshold on rental income raised to Rs 2.4 lakh from Rs 1.8 lakh
  • Capital gains from residential property sale eligible for exemption under Section 54 for two properties bought
  • No income-tax on notional rent on second self-occupied home

February 2018

  • Hike in cess to 4% from 3%
  • Introduction of standard deduction of Rs 40,000 for salaried individuals

For senior citizens

  • Exemption of interest income on bank/post office deposits increased to Rs 50,000 from Rs 10,000
  • Hike in deduction limit for health insurance premium/medical expenditure to Rs 50,000 from Rs 30,000 under section 80D of Income Tax Act

Budget 2017

  • Reduction in income tax rate on income of Rs 2.5 lakh-5 lakh to 5% from 10%
  • Rebate under Section 87A lowered to Rs 2,500 from Rs 5,000; no rebate on income above Rs 3.5 lakh
  • Surcharge of 10% on income of Rs 50 lakh-Rs 1 crore
  • Penalty up to Rs 10,000 on failing to file returns on time (not more than Rs 1,000 on income up to Rs 5 lakh)
  • Abolition of deduction on investment in Rajiv Gandhi Equity Saving Scheme

Budget 2016

  • Increase in surcharge to 15 per cent from 12 per cent total income over Rs 1 crore
  • Tax rebate for individuals with income up to Rs 5 lakh raised to Rs 5,000 from Rs 2,000
  • Additional deduction up to Rs 50,000 on interest payment for first-time home loan borrower (over and above Rs 2 lakh for home loan borrower)

Budget 2015

  • Wealth tax abolished
  • Surcharge on income above Rs 1 crore increased to 12% from 10%

Budget 2014

  • Income tax exemption limit raised by Rs 50,000 to Rs 2.5 lakh (Rs 3 lakh for senior citizens)
  • Exemption limit for investment in financial instruments under Section 80C of Income Tax Act
  • Deduction limit on interest on loan for self-occupied house raised to Rs 2 lakh, from Rs 1.5 lakh