Union Minister Piyush Goyal on Friday proposed a full tax rebate for individuals with income up to Rs 5 lakh. The income tax proposal will benefit three crore taxpayers, Mr Goyal said while presenting the interim Budget for 2019-20 in Parliament. “Because of major tax reforms undertaken by us during the last four and half years, both tax collections as well as the tax base have shown significant increase and we have made progress towards achieving a moderate taxation–high compliance regime,” said Mr Goyal.
“It is, therefore, just and fair that some benefits from the tax reforms must also be passed on to the middle class taxpayers.” (Read full Budget speech here)
Here are key income tax announcements made by the government as part of Budget 2019:
- Full tax rebate on annual personal income up to Rs 5 lakh
- Standard deduction limit raised from Rs 40,000 to Rs 50,000
- Benefit of rollover of capital tax gains increased from investment in one residential property to that in two such properties – applicable to taxpayer having capital gains up to Rs 2 crore, and can be claimed once in a lifetime
- Four-fold increase in the limit for TDS (tax deducted at source) applicable on interest income (from bank/post office) to Rs. 40,000 per annum
- TDS limit applicable to rental income raised by one-thirds to Rs 2.4 lakh
- Income tax refunds to be processed within 24 hours, and released immediately
- Small and medium-sized businesses registered under GST to get 2 per cent interest subvention on loan of Rs 1 crore
- Direct tax collections up from Rs. 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore
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