• Standard deduction for salaried persons increased from Rs.40000/= Rs.50000/=
  • 100% rebate on tax is allowed to resident individual tax payers having taxable income up to Rs.5 lakh. It means that the the resident individuals are not supposed pay any tax if their income is up to Rs.5 lakh after allowing all the permissible deductions under income tax act. In other words a rebate upt to Rs.12500/= will be allowed¬† u/s 87A of the Income Tax Act to individuals having taxable income after allowing all the permissible deductions up to Rs.5 lakhs. However, if the taxable income income of individual taxpayers exceeds Rs.5 lakhs then the tax @ 5% will be paid on income from Rs. 2.5 lakhs to Rs. 5 Lakhs.
  • Surcharge is levied on taxable income as follows:
    • 10% on income above Rs.50 lakh but below Rs. 1 crore.
    • 15% on income above Rs. 1 crore but below Rs.2 crore.
    • 25% on income above Rs. 2 crore but below 5 crores.
    • 37% on income above Rs. 5 crore.
  • Income Ta rate is reduced on income of companies @25% having annual turnover up to Rs.400 crore. Previously this limit was Rs. 250 crore.
  • Individuals who do not have PAN can file the income tax return using ADHAAR.
  • ADHAAR aslo can be used wherever PAN is required.
  • Limit of Gratuity is increased from 10 lakh to 30 lakh.
  • Pre-filled tax returns will be also available having details of several incomes and deductions. These information will be collected from banks, mutual funds and stock exchanges etc.
  • Faceless e-assessment to be launched.
  • No TDS is to deducted by any person (other than individual or HUF not subject to tax audit) on rent payable to resident up to Rs.2.40 lakh during a financial year. Previously this limit was Rs.1.80 lakh in a financial year.
  • No TDS is to be deducted by banks or post office on interest on fix deposits up to Rs.40000/= during a financial year. Previously, this limit was Rs.10000/=.
  • No notional income of second residential house will be added to taxable income even if it is locked up.
  • Individuals and HUFs having long term capital gain up to Rs. 2 crore from the sale of residential house, can get exemption by investing maximum in 2 residential houses. This benefit will be available once in life time.
  • 100% tax holiday is extended til March’2020 on profit from developments of affordable housing projects.
  • Additional deduction for Rs.150000/= on account of interest on housing loan will be allowed borrowed up to to 31.03.2020 for purchase of affordable house up to Rs.45 lakhs. Previously, the amount of deduction on interest on home loan was Rs. 2 lakh.
  • Taxation on notional rent from unsold inventories for builders and developers is extended from one year to two years.
  • Capital gains from sale of residential house is exempted for investment in start-ups uo to financial year 21.
  • No scrutiny is required by Income Tax Department in respect of funds raised by start-ups.
  • Small and medium enterprises, registered under GST, will get a rebate of 2% on interest on excremental loan of Rs. one crore.
  • All businessmen, registered ¬†under GST and having their turnover less than 5 crore, will be allowed to submit GST returns on quarterly basis.
  • A simplified single monthly return will introduced for GST payers..
  • To prefill the taxpayer return, electronic invoice system will be introduced from January’2020 for GST payers.
  • Separate e-way bill will not be required for GST payers.
  • Multiple tax ledgers for GST payers will be replaced by one ledger.
  • Implementation¬† of GST refund module will be done.
  • Rate of GST is reduced from 12% to 5% on electric vehicles.
  • On electric vehicle loans, an additional income tax deduction of Rs.150000/= will be allowed.
  • On certain parts of electric vehicles, the custom duty exempted.
  • Cash withdrawals exceeding Rs. 1 crore from a bank will attract TDS @ 2%.

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