The Union Budget of 2019 looks for the salaried class this time. Piyush Goyal is delegated as the between time fund serve in light of the fact that Arun Jaitley is experiencing treatment in the United States. On one hand, Piyush Goyal proposed to build a Standard Deduction of Rs 50,000/ - which will be deducted from the assessable salary of workers which is a reference to the salaried class. Then again, there is no adjustment in the Tax piece, anyway the refund u/s 87A is been changed to Rs.12,500/ - from existing Rs.2500/-.
Here are the Key Changes presented by the Budget 2019 –
1. No adjustment in Income Tax chunks rates
The Modi Government in the previous years has rolled out positive improvements regarding salary charge for the salaried class. In any case, the current year's Budget again has rolled out no improvements in the Income Tax section rates.
2. The proposition to Increase Standard Deduction
The Union Budget 2019 has proposed to expand Standard Deduction to Rs 50,000 from existing Rs. 40,000. The standard conclusion is a level sum that is subtracted from pay before estimation of assessable pay.
3. The proposition to Increase Income Limit for Rebate u/s 87A
The financial plan 2019 has proposed to build Section 87A discount assessable pay point of confinement to Rs 5 lakh from existing Rs 3.5 lakh. Prior for assessable pay up to Rs. 3.5 lakh the discount was point of confinement to Rs 2,500/-, however under new proposition this cutoff will stretch out to Rs 12,500/-, this implies for that worker whose assessable salary is up to Rs 5 lakh need not require to make good on any regulatory expense, yet on the off chance that the sum surpasses Rs 5 lakh, at that point at that point existing 5% rate on piece Rs 2.5 lakh till Rs 5 lakh will be material.
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4. The decrease in Income Tax process Time
The Budget 2019 has proposed to lessen Income Tax returns handling time to 24 hours from existing time which use to take up to 25 to 40 days.
5. Denied Tax on 'Notional Rent Income'
Surrender charge on 'Notional Rent Income' on Deemed-to-be-let-out property if a worker holds 2 house property.
For a progressively thorough comprehension of the Key Highlights, here's an unthinkable portrayal of the considerable number of changes made.-
Particulars
|
Pre-Budget
|
Post-Budget
|
Standard Deduction
Deducted Amount
|
Rs.40,000/- Annual
|
Rs.50,000/- Annual
|
T87A Rebate Taxable Income Limit
|
Rs.3,50,000/- Annual
|
Rs.5,00,000/- Annual
|
87A Rebate amount Limit
|
Rs.2,500/- Annual
|
Rs.12,5,00/- Annual
|
Personal IT return Processing time
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25 to 40 Days
|
24 Hours
|
Income Tax on
Notional Rent Income |
Income Tax on
Notional Rent Income |
Income tax on notional rental income will not be taxed on the second house property(if deemed to be let out). However, if an employee has more than two house properties, then in such cases additional houses over and above will be taxed accordingly
|
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