1. Individual taxpayers having taxable annual income up to ` 5 lakhs will get full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to ` 6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc.
2. Standard deduction for salaried employees raised from Rs. 40,000 to Rs. 50,000
3. Threshold limit for TDS on rent increased from Rs. 180000 to Rs. 240000
4. Currently, income tax on notional rent is payable if one has more than one self-occupied house. Considering the difficulty of the middle class having to maintain families at two locations on account of their job, children’s education, care of parents etc. It is proposed to exempt levy of income tax on notional rent on a second self-occupied house
5. TDS threshold on interest earned on bank/post office deposits is being raised from ` 10,000 to ` 40,000. This will benefit small depositors and nonworking spouses
6. The benefit of rollover of capital gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses for a tax payer having capital gains up to ` 2 crore. This benefit can be availed once in a life time.
7. For making more homes available under affordable housing, the benefits under Section 80-IBA of the Income Tax Act is being extended for one more year, i.e. to the housing projects approved till 31st March, 2020.
8. Also, for giving impetus to the real estate sector, it has been proposed to extend the period of exemption from levy of tax on notional rent, on unsoldinventories, from one year to two years, from the end of the year in which the project is completed.
9. Single window clearance for ease of shooting films, available only to foreigners, is now going to be made available to Indian filmmakers as well. Regulatory provisions will rely more on self-declaration. Government will also introduce anti-camcording provisions in the Cinematograph Act to control the menace of piracy.
10. Direct tax collection has increased from 6.38 lac crore to 12 lac crores
11. 99.54% income-tax returns accepted as having been filed without any scrutiny
12. All returns will be processed in twenty-four hours and refunds issued simultaneously. Within the next two years, almost all verification and assessment of returns selected for scrutiny will be done electronically through anonymised back office, manned by tax experts and officials, without any personal interface between taxpayers and tax officers.
13. The anti-black money measures taken during the last four and half years in the form of Black Money Law, the Fugitive Criminal Offenders Act, and Demonetisation, have brought undisclosed income of about ` 1,30,000 crore to tax, led to seizure and attachment of assets worth approximately ` 50,000 crore, and compelled holders of large cash currency to disclose their source of earnings. During this period, Benami assets worth ` 6,900 crore and foreign assets worth `1,600 crore have been attached. As many as 3,38,000 shell companies have been detected and de-registered, and their directors disqualified. Growth of 18% in direct tax collection in 2017-18 and increase in tax base by as many as 1.06 crore people filing income tax returns for the first time in FY 2017-18 is mainly on account of demonetization.
14. The New Pension Scheme (NPS) has been liberalized. Keeping the contribution of the employee at 10%, we have increased the Government contribution by 4% making it 14%. Maximum ceiling of the bonus given to the labourers has been increased from ` 3,500 pm to ` 7,000 pm and the maximum ceiling of the pay has been increased from ` 10,000 pm to ` 21,000 pm. The ceiling of payment of gratuity has been enhanced from ` 10 lakhs to ` 20 lakhs.
15. Reforms in stamp duty levied and collected on financial securities transactions. The amendments proposed would usher in a very streamlined system. Stamp duties would be levied on one instrument relating to one transaction and get collected at one place through the Stock Exchanges. The duty so collected will be shared with the State Governments seamlessly on the basis of domicile of buying client.
16. Farmers owning land up to 2 hectares to get Rs. 6000 per annum under PM Kissan Yojna and 75000 crore per year to be spent on PM Kisan Yojna.
17. Persons working in unorganised sector and having income upto Rs. 15000 per month will get pension of Rs. 3,000 per month under Pradhan Mantri Shram Yogi Maandhan Yojana.
18. GST registered SME will get 2% rebate on interest on loan upto 1 Cr.
19. Farmers severely affected by natural calamities will get 2% interest subvention and additional 3% interest subvention on timely repayment of loan.
20. The Defence Budget will be crossing ` 3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided.
21. The poor have the first right on the resources of the nation. The Government while maintaining the existing reservation for SC/ST/Other Backward Classes, have now ensured 10% reservation in educational institutions and Government services for poors. In these institutions, around 25% extra seats (approximately 2 lakh) will be provided so that, there is no shortfall of presently available/reserved seats for any class.
Disclaimer: Details compiled based on information available on public domain as on date. Exact Implications may differ based on changes in law and specific case as applicable. The details provided are only compilation of information and does not constitute any opinion or advisory.