Highlights of Tax Benefits
No tax liability for individuals having taxable annual income up to INR 5,00,000 is one of the key tax benefits proposed by Union Finance Minister in the Interim Budget for 2019 in Parliament on Friday, 1st February 2019.
- Standard deduction limit enhanced from INR 40,000 to INR 50,000 for salaried employees
- TDS limit hiked from INR 10,000 to INR 40,000 on interest from Post Office Savings and Bank Deposits
- TDS limit on rental income increased from INR 1,80,000 to INR 2,40,000
- No tax on notional rent of second Self-occupied House under “Income from House Property”
- Proportionate exemption on long-term capital gains arising from proceeds of sale of residential house extended to purchase of two residential houses from one house, provided the capital gains is less than or equal to INR 2 crores and to be availed only
- Period of exemption from levy of tax on notional rentals from property held as inventories is extended from one year to two years
- Benefits under Section 80-IBA to be extended for one more year to developers who are engaged in developing and building affordable housing projects approved till 31 March 2020.
- Processing of Income Tax Returns to be done in 24 hours
- Within the next 2 years, all verification of tax returns to be done electronically without any interface with the taxpayer
- SMEs with earnings below INR 5 Crores will soon file GST returns only once in 3 months.