A budget is always an important event for all the sections of the society. We get to know how we can save some money and where we need to watch the spendings.
This year interim budget definitely created an impact! Let us find out what you can benefit from and what you need be aware of!!!
Income Tax Relaxation:
- First time, the income tax limit is raised from 2,50,000 Rs. to 5,00,000 Rs.!
- What it means is that till 5 Lakh Rupees income/ year you will get full tax rebate after all deductions.
- The threshold for TDS on interest income from deposits with bank and post offices increased from Rs 10,000 to Rs 40,000.
Here is a summary of what changed and how it will affect a middle-class household!
We have considered that calculations are in accordance with law, and they show in a normal course what we can achieve.
|What is Affected?||Before Budget 2019||After Budget 2019|
|Salaried Income Tax Rebate||2,50,000. (13,000Rs to be paid for 5,00,000 Salary)||5,00,000. (Full Rebate on income)|
|Second (Owned) Home Not on Rent||Notional Rent added to taxable income.||Notional rent waived off.|
|Capital Gains Tax– If we sell our property and invest in another property.||Limited to 1 property, both transactions should have happened in one year.||
|If you are earning interest from Post office or Bank and that was from 10,000 to 40,000||Earlier limit was 10,000 so any income after that was taxable.||Limit increased to 40,000. No tax if you earn up to 40,000 from interest.|
|If your income is 6,50,000Rs||You are in 10% tax bracket.||Persons with gross income up to Rs 6.50 lakh not required to pay any income tax if they make investments in provident funds, specified savings and insurance|
|TDS threshold for deduction of tax on rent.||Limited to Rs 1.80 lakh.||Increased up to Rs 2.40 lakh.
Helps individuals who lease to small companies. For individuals, the Rent needs to be 50,000Rs and above.
For companies there is something good: Gratuity limit increased from 10 lakh to 30 lakh rupees for all.
A computerised system to be in place in next 2 years eliminating direct interference of officers and clients in Scrutiny of Income Tax Cases.
If you act smartly there are chances that you can save up to 15,000 Rs in a Year. That is certainly a good amount for any home.
As for a small company, the GST returns can be filled every quarter instead of every month!
This means that you can have more time to adjust and comply with the law without worry.
Many businessmen will be happy with this announcement as they will have less paperwork to deal with.
What is your take on this budget? Feel free to comment!