{"id":13196,"date":"2019-02-11T10:43:09","date_gmt":"2019-02-11T05:13:09","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=13196"},"modified":"2023-04-05T10:29:05","modified_gmt":"2023-04-05T04:59:05","slug":"income-tax-changes","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/income-tax-changes\/","title":{"rendered":"Key Income Tax Changes in Interim Union Budget 2019"},"content":{"rendered":"<p>The interim budget of 2019 came as a big relief for the common people of India. Accordingly, Finance Minister Piyush Goyal proposed many changes in the rules of <a href=\"https:\/\/enterslice.com\/income-tax-return-filing\">Income Tax<\/a> for the year 2019-20. From an increase in tax rebate on income to an increase in the standard deduction, the government announced some key&nbsp;income tax changes&nbsp;in Budget 2019.<\/p>\n<p>So in this blog, we would give you a glance at these changes and how they can impact you.<\/p>\n<h2><strong>Key Highlights of Income Tax Changes<\/strong><\/h2>\n<ul>\n<li>No tax on income up to Rs 5 lakh<\/li>\n<li>Standard deduction increased from&nbsp;&#8377;40,000 to&nbsp;&#8377;50000.<\/li>\n<li>Exemption from notional rent in respect of two self-occupied house properties.<\/li>\n<li>The one-time benefit of capital gains exemption on reinvestment in two house properties.<\/li>\n<li>Interest income on bank\/post office deposits up to&nbsp;&#8377;40,000 will not be subject to TDS.<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-13213\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/02\/budget-2019.jpg\" alt=\"budget 2019\" width=\"596\" height=\"120\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/02\/budget-2019.jpg 596w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/02\/budget-2019-300x60.jpg 300w\" sizes=\"(max-width: 596px) 100vw, 596px\"\/><\/p>\n<p>Now let us try to understand the above changes in detail:<\/p>\n<ul>\n<li>\n<h4><strong>No Income tax on income up to Rs. 5 lakhs<\/strong><\/h4>\n<\/li>\n<\/ul>\n<p>Surprised to know this? Well, any individual taxpayers who are having a taxable annual income up to Rs. 5 lakh will be liable to get the full taxable rebate. Therefore, they would be not liable to pay any income tax. Here please don&rsquo;t get confused with the income tax exemption. This is the rebate which is applicable to those with annual income up to Rs. 5 lakh.<\/p>\n<p>Moreover, people with gross taxable income up to Rs. 6.5 lakh will have to pay no tax if they make investments in provident funds, specified savings, insurance, etc. As they can show the investments up to 1.5 lakhs under the exemption head.<\/p>\n<p><strong><em>If your taxable income does not exceed Rs 5 lakh a year (after claiming all the deductions under sections 80C to 80U and other tax-exempt allowances) you can end up paying zero taxes<\/em><\/strong><\/p>\n<ul>\n<li>\n<h4><strong>Standard deduction increased from&nbsp;&#8377;40,000 to&nbsp;&#8377;50000.<\/strong><\/h4>\n<\/li>\n<\/ul>\n<p>The standard deduction was re-introduced in the year 2018 under the income tax slab. The standard deduction of <span style=\"font-style: inherit;\">Rs.<\/span>&nbsp;40,000 has been&nbsp;proposed in Budget 2018. Further, it will replace the existing deductions of&nbsp;<span style=\"font-style: inherit;\">Rs.<\/span>&nbsp;19,200 and&nbsp;<span style=\"font-style: inherit;\">Rs.<\/span>&nbsp;15,000 for transport allowance and medical reimbursement respectively.<\/p>\n<p>You must be aware that a standard deduction reduces your taxable income. Hence, it will reduce your tax liability. For salaried individuals and pensioners, the standard deduction has been increased from Rs. 40,000 to Rs. 50,000.<\/p>\n<table border=\"1\" width=\"100%\" cellspacing=\"0\" cellpadding=\"10\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" colspan=\"3\" width=\"326\"><strong>Net Income After&nbsp; 80C Deduction<\/strong><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"233\"><strong>Tax<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"90\"><strong>Benefits<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" width=\"113\"><strong>AY 2019-20<\/strong><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"213\"><strong>&nbsp;2020-21<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"119\"><strong>AY 2019-20<\/strong><\/td>\n<td style=\"text-align: center;\" width=\"114\"><strong>2020-21<\/strong><\/td>\n<td width=\"90\"><strong>&nbsp;<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"113\"><strong>Net Income<\/strong><\/td>\n<td width=\"105\">Increase in Standard Deduction<\/td>\n<td width=\"108\">Net Income<\/td>\n<td width=\"119\"><\/td>\n<td width=\"114\"><\/td>\n<td width=\"90\"><\/td>\n<\/tr>\n<tr>\n<td width=\"113\"><strong>5,10,000<\/strong><\/td>\n<td width=\"105\">10,000<\/td>\n<td width=\"108\">5,00,000<\/td>\n<td width=\"119\">13,520<\/td>\n<td width=\"114\">&mdash;<\/td>\n<td width=\"90\">13,520<\/td>\n<\/tr>\n<tr>\n<td width=\"113\"><strong>10,60,00<\/strong><\/td>\n<td width=\"105\">10,000<\/td>\n<td width=\"108\">10,50,000<\/td>\n<td width=\"119\">1,35,720<\/td>\n<td width=\"114\">1,32,600<\/td>\n<td width=\"90\">3,120<\/td>\n<\/tr>\n<tr>\n<td width=\"113\"><strong>58,10,000<\/strong><\/td>\n<td width=\"105\">10,000<\/td>\n<td width=\"108\">58,00,000<\/td>\n<td width=\"119\">17,79,492<\/td>\n<td width=\"114\">17,76,060<\/td>\n<td width=\"90\">3,432<\/td>\n<\/tr>\n<tr>\n<td width=\"113\"><strong>1,08,10,000<\/strong><\/td>\n<td width=\"105\">10,000<\/td>\n<td width=\"108\">1,08,00,000<\/td>\n<td width=\"119\">36,54,378<\/td>\n<td width=\"114\">36,50,790<\/td>\n<td width=\"90\">3,588<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong><em>As a result, for salaried individuals and pensioners, aan dditional increase of Rs 10,000 in standard deduction can help in reducing their taxable income up to Rs 5 lakh.&nbsp;<\/em><\/strong><\/p>\n<ul>\n<li>\n<h4><strong>The one-time benefit of capital gains exemption on reinvestment in two house properties.<\/strong><\/h4>\n<\/li>\n<\/ul>\n<p>Presently the exemption in capital gain is only applicable to one house <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Property&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Property refers to the legal designation of ownership over valuable items or assets held by an individual or a business. This ownership grants the holder certain legal rights to use, consume,(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/property\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>property<\/a>. Under the new income tax slab, the capital gain exemption of one-time benefit of capital gains has now been applicable on reinvestment in two house properties. Please note that this tax benefit is applicable in case the amount of capital gain is Rs 2 crore or less.<\/p>\n<p><strong><em>Hence, it is a big relief for individuals who could not completely utilize the capital gains from the sale of the house by either purchasing or constructing a house would now be able to use them to purchase two houses. <\/em><\/strong><\/p>\n<p><em>However, it is important to note that your capital gains should not exceed Rs 2 crore. Further, this benefit can be availed only once in a lifetime.<\/em><\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-13214\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/02\/Capture-2.jpg\" alt=\"\" width=\"645\" height=\"282\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/02\/Capture-2.jpg 645w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/02\/Capture-2-300x131.jpg 300w\" sizes=\"(max-width: 645px) 100vw, 645px\"\/><\/p>\n<ul>\n<li>\n<h4><strong>Exemption from notional rent in respect of two self-occupied house properties.<\/strong><\/h4>\n<\/li>\n<\/ul>\n<p>Do you also own two self- occupied houses? Well, you have good news to read. Home-owners will not be required to pay any tax on notional rent if they own more than one self-occupied property. As per the latest budget proposals, the exemption has been proposed on the income tax from the notional rent on the second -self-occupied house.<\/p>\n<p><strong><em>Hence, <\/em><\/strong><strong><em>in case you own a second house which is not let-out, then you do not have to pay tax on the income which is actually not earned by you.&nbsp;<\/em><\/strong><\/p>\n<ul>\n<li>\n<h4><strong>Interest income on bank\/post office deposits up to&nbsp;&#8377;40,000 will not be subject to TDS.<\/strong><\/h4>\n<\/li>\n<\/ul>\n<p>Now, this comes as a big relief for the small depositors and the non-working spouses. The threshold on TDS on interest from bank or post office deposits has now been increased to&nbsp;&#8377;40,000. The current limit as of now was &#8377;10,000. In simple words, interest income on bank\/post office deposits up to&nbsp;&#8377;40,000 will not be subject to any TDS.<\/p>\n<p><strong><em>Hence, it will surely bring a smile on those landlords who might have given their property to the non-individuals. For example Corporates. Additionally, it will give a lot of convenience to those people who majorly depend on the rental income.<\/em><\/strong><\/p>\n<p>So these were the major&nbsp;income <a href=\"https:\/\/www.incometaxindia.gov.in\/Pages\/default.aspx\">tax<\/a> changes introduced in the interim budget of 2019. The above major highlights have surely grabbed a lot of eyes.<\/p>\n<p><strong>Let&rsquo;s wrap it up<\/strong><\/p>\n<p>This year budget has come up as a big relief for the middle-income group of taxpayers. Not only was the above Income tax changes are remarkable but the entire Interim Union Budget 2019 seems to be impressive. These changes will surely increase the collection of the government. On the other hand, it will help taxpayers to file income tax returns in a more simplified manner.<\/p>\n<p><strong>Also Read:<\/strong> <a href=\"https:\/\/enterslice.com\/income-tax-notice\">How to Check Income Tax Notice Online?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The interim budget of 2019 came as a big relief for the common people of India. Accordingly, Finance Minister Piyush Goyal proposed many changes in the rules of Income Tax for the year 2019-20. From an increase in tax rebate on income to an increase in the standard deduction, the government announced some key&nbsp;income tax [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":13211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2383,1473],"tags":[575,23],"acf":{"service_id":"51"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Income tax changes and updates in Interim Union Budget 2019<\/title>\n<meta name=\"description\" content=\"From an increase in tax rebate on income to an increase in standard deduction, the government announced some key income tax changes in Budget 2019.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/income-tax-changes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Income tax changes and updates in Interim Union Budget 2019\" \/>\n<meta property=\"og:description\" content=\"From an increase in tax rebate on income to an increase in standard deduction, the government announced some key income tax changes in Budget 2019.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/income-tax-changes\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-11T05:13:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-05T04:59:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/02\/Income-Tax-changes-3.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Neelansh Gupta","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/IMG_20190305_185223.jpg","authorDescription":"Mr. Neelansh Gupta is a Legal Counsel having extensive in-depth knowledge of various laws.  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