10
POINTS TO REMEMBER IN BUDGET 2019-20
Following
the tradition for last 8 years, here are my ten major points from budget for
2019-2020, presented today.
- No income tax for income up to Rs. 5
lakhs. Once income exceeds, the effective tax slabs and rates will be as
follows;
|
Effective Income Tax
slab for individuals
|
Rate/s of Income Tax
|
|
Income up to Rs. 5
Lakhs
|
0%/Nil tax
|
|
Once income exceeds Rs. 5
lakhs
|
|
|
Income from Rs.2.5
Lakhs to 5 Lakhs
|
5%
|
|
Income from Rs. 5
Lakhs to 10 Lakhs
|
20%
|
|
Income from Rs. 10
Lakh and above
|
30%
|
- Standard deduction for salaried persons has been increased to Rs. 50,000 from earlier Rs. 40,000.
- Long term capital gains exemption
under section 54 for sell of residential house has been extended to two
residential houses from one earlier, for capital gains up to Rs. 2 Crores.
- Exemption of interest income on
bank deposits raised to Rs. 40,000 from Rs. 10,000 earlier, for TDS
deduction.
- No tax on notional rent income of
second self-occupied residential house.
- Rs. 6,000 will be provided to farmers every
year, owning lands up to 2 hectares.
- Rs. 3,000 pension per month will be
provided to all persons working in unorganised sector, having monthly
income up to Rs. 15,000, after they complete 60 years of age subject to
rules and contribution in this regard.
- Composition scheme for GST for
turnover up to Rs. 1.5 Crore for business (GST @ 1%) and Rs. 50 lakhs for
professionals (GST @6%).
- Single window clearance for film
shootings for Indian Filmmakers/Directors/Producers.
- Complete digitisation of income tax
matters including filings, refunds and scrutiny, without face to face
meeting with income tax officers. This will be beneficial for people and
professional on the move/change in there residential /business addresses.
CA. Brijesh Baranwal
Mumbai
