Burning Topic of Today the INTERIM BUDGET 2019.

                                                                       Interim Budget 2019

Interim Budget 2019 

On 1^st February 2019 Piyush Goyal conclude the speech and will be adjourned it till 4^th February 2019 in Lok Sabha. It is one of the budget, which focus on the every classes of people on the Nation. It is just not an Interim Budget, this is a vehicle for the development and transformation of Nation. Here we are discussing the main topics, which all need to know.

Interim Budget 2019
(1.)  Exemption on second self-occupied house.

Ø  In the interim budget 2019, In this budget it is proposed to extend the benefit of self-occupied property to two houses, if it is not let out. At present, you could only do this  with only one property,

This is what this means: If you have three house properties, out of which you live in one of them, and the other two are not given on rent, then any two out of three house properties can be considered as 'self-occupied'. The third one will then be considered as deemed to be let out. 

Reason of doing this.

The government decision will assuage the plight of the middle class who were facing difficulty to maintain families at two locations because of their job, children's education, care of parents because the law makes it mandatory to pay income tax on notional rent if one has more than one self-occupied house.

(2.)  Claiming Exemption u/s 54.

Ø  In the interim budget 2019, Finance minister Piyush Goyal, hase proposed to benefit of rollover of capital tax gains to be increase from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to Rs 2 crore; can be exercised once in a lifetime.

(3.)  Ceiling limit on TDS on Rent u/s 194I.

Ø  In an interim budget 2019, it had been proposed by finance minister Piyush Goyal to increase the limit of TDS deduction by the person making the payment if  the total amount to be paid during the year exceeds Rs. 1,80,000 p.a to Rs.2,40,000. This limit of Rs. 2,40,000 p.a. is per taxpayer.

(4.)  Standard Deduction Rs.50,000

Ø  In an interim budget 2019, In budget 2018 standard deduction flat Rs.40,000 to salaried class in lieu of existing deductions of Rs. 15,000 for medical reimbursement and Rs. 19,200 for transport allowance. But in interim budget 2019 it had been proposed to extend to Rs.50,000.

(5.) Ceiling limit on TDS on Interest u/s 194A.

Ø  In an interim budget 2019, Finance Minister Piyush Goyal has proposed to increase the limit to deduct TDS by the tax payer/ deductor  if the amount of such interest paid or credited OR is likely to be paid or credited in a financial year,  exceed Rs.40,000. Previously the limit was Rs.10,000.

(6.)  Full Tax Rebate upto 5 lakh annual income after all deduction.

Ø  In an interim budget 2019, Instead of giving straight exemption on income upto Rs.5,00,000 finance minister twisted the situation by giving Rebate under section 87A. Thus, if the income is more than 5 lakh, assesse can claim rebate under section 87A and assesse will need to pay tax on income above Rs. 2,50,000.

Example.

Particular	Budget 2019	Budget 2018
Income	5,00,000	5,00,000
Computation of Tax
0-250000@0%	0	0
250001-500000@5%	12500	12500
Rebate u/s 87A	12500	0
Net Tax	0	12500
Add: Cess@4%	0	500
Net Tax Liability	0	13000
Saving of Tax	13000 Tax	No Saving

(7.)  No need to pay tax gross income upto Rs.6,50,000.

Ø  Assessee is no need to pay any Tax upto the Gross income of Rs.6,50,000 if they make investments in provident funds and prescribed equities.

(8.)  It had been Proposed to increase the limit of Gratuity limit from Rs.10 lakh to Rs.30 lakh, but tax free will be Rs.20 lakh.

(9.)  26 weeks Maternity leave will be available for the women.

(10.) Benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-2020.

Note: If there is proper planning for Assesse from Consultant Assesse is not required to pay any tax on Gross income of Rs.10,35,000. If you want me to share the details  comment on the post.

For Union Budget:https://www.taxclub.online/2019/07/union-budget-2019-highlightunion.html
For Interim Budget Highlight: https://gyandeep1477.blogspot.com/2019/02/xghh.html
No tax up to 10Lakh: https://www.taxclub.online/2019/02/no-tax-on-salary-income-upto-10-lakh-pa.html