Following the tradition for last 8 years, here are my ten major points from budget for 2019-2020, presented today.
1. No income tax for income up to Rs. 5 lakhs. Once income exceeds, the effective tax slabs and rates will be as follows;
|
Effective Income Tax slab for individuals |
Rate/s of Income Tax |
|
Income up to Rs. 5 Lakhs |
0%/Nil tax |
|
Once income exceeds Rs. 5 lakhs |
|
|
Income from Rs.2.5 Lakhs to 5 Lakhs |
5% |
|
Income from Rs. 5 Lakhs to 10 Lakhs |
20% |
|
Income from Rs. 10 Lakh and above |
30% |
2. Standard deduction for salaried persons has been increased to Rs. 50,000 from earlier Rs. 40,000.
3. Long term capital gains exemption under section 54 for sell of residential house has been extended to two residential houses from one earlier, for capital gains upto Rs. 2 Crores.
4. Exemption of interest income on bank deposits raised to Rs. 40,000fromRs. 10,000 earlier, for TDS deduction.
5. No tax on notional rent income of second self-occupied residential house.
6. Rs. 6,000 will be provided to farmers every year, owning lands up to 2 hectares.
7. Rs. 3,000 pension per month will be provided to all persons working in unorganised sector, having monthly income upto Rs. 15,000,after they complete 60 years of age subject to rules and contribution in this regard.
8. Composition scheme for GST for turnover up toRs. 1.5 Crore for business (GST @ 1%) and Rs. 50 lakhs for professionals (GST @6%).
9. Single window clearance for film shootings for Indian Filmmakers/Directors/Producers.
10. Complete digitisation of income tax matters including filings, refunds and scrutiny, without face to face meeting with income tax officers. This will be beneficial for people and professional on the move/change in there residential /business addresses.
The author can also be reached at cabrijesh@yahoo.co.in
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