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Key Highlights of Interim Budget 2019

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Key Highlights of Interim Budget 2019 - Team Ca4Globe

Considering the fact that the budget was just an interim budget, our FM refrained from making any significant policy decisions or announcements for direct taxes. However, he did announce few benefits for the small tax payers enumerated as below.

  • 1. Standard Deduction has been increased to Rs. 50,000 from Rs. 40,000.
  • 2. No increase in threshold limit of Rs 2,50,000. It is rebate under Section 87A increased from Rs 2,500 to Rs 12,500. And eligibility of total income not to exceed Rs 3,50,000 increased to Rs5,00,000. Thus the benefit will be to only those taxpayers whose total income doesn't exceed Rs 5,00,000.

If total Taxable Income exceeds Rs 5,00,000 tax will start from Rs 2,50,0000 at 5% up to Rs 5,00,000 and 20% from 5,00,000 to Rs. 10,00,000 and onwards.

  • 1. Ceiling Limit of TDS u/s 194I has increased from 180000 to 240000.
  • 2. Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000.
  • 3. Notional rent not applicable on the 2nd self occupied house.
  • 4. Notional rent not applicable for 2 years after completion of the house/building.
  • 5. Deduction u/s 80IBA for developers of affordable housing scheme has been extended by one year for projects registered upto till March 31, 2020.
  • 6. Tax free Gratuity limit increase to 20 Lakhs from 10 Lakhs.
  • 7. Exemption from Capital Gain on sale of residential house under Section 54 has been extended to purchase of 2 residential house subject to maximum capital gain of Rs. 2 Crores. This option can be claimed once in a lifetime.
  • 8. Bonus will be applicable for workers earning 21000 monthly.
  • 9. 2% interest relief for MSME GST registered person.
  • 10. 26 weeks of Maternity Leaves to empower the women.
  • 11. IT returns processing in just 24 hours.
  • 12. Within 2 years, Tax assessment will be done electronically.
  • 13. Custom duty has abolished from 36 Capital Goods.
  • 14. Recommendations to GST council for reducing GST rates for home buyers.
  • 15.2% interest subvention for farmers pursuing animal husbandry and also create separate department for fisheries.
  • 16. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.


Tax planning

Tax planning is the analysis of one's financial situation from a tax efficiency point of view so as to plan one's finances in the most optimized manner.

GST registration

For GST, the term Aggregate Turnover implies all provisions made by the assessable individual whether all alone or sake of a foremost.

Return filing

A tax return is a form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information.