The Union Finance Minister Piyush Goyal has announced the Interim Budget for the year 2019-20 today. The key proposals in the budget regarding taxation are the following;
- Income Tax Exemption to People having Income of 5 Lakhs
- Additional deductions such as interest on a home loan up to Rs. 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance and medical expenditure on senior citizens etc, are also provided for in the Interim Budget 2019-20. Thus tax benefit of Rs. 18,500 crore is proposed to be provided to an estimated 3 crore middle class and small taxpayers comprising self-employed, small business, small traders, salary earners, pensioners, and senior citizens.
- 50000 Standard Deduction for Salaried Class from current Rs. 40,000
- Relief for Self-Occupied House – No Notional Income for second self-occupied House
- TDS on Bank Deposits – No TDS on Rs. 40,000
- No TDS on Rent for Annual rent of Rs. 2.4 Lakhs rupees
- Capital gain Exemption under Section 54 of the Income-tax Act available to two Residential Houses
- Capital gain Exemption under section 54 increased to Two Cores
- 80(1)(b)(a) benefit for Affordable Houses extended till 31st March 2020.
- Tax Relief for Notional Rent on Unsold Houses extended to Two years
- The Finance Minister says that the Government wants the GST burden on home buyers to be reduced and accordingly the GST Council was moved to appoint a Group of Ministers to examine and make recommendations in this regard at the earliest.
