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Home / India News / 6 Income tax changes announced in budget 2019

6 Income tax changes announced in budget 2019

Proposing several changes to the tax structure, Piyush Goyal - presenting the NDA government’s last budget in an election year - proposed no tax on income up to Rs 5 lakh.

india Updated: Feb 01, 2019 15:14 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
Proposing several changes to the tax structure, Piyush Goyal - presenting the NDA government’s last budget in an election year - proposed no tax on income up to Rs 5 lakh.
Proposing several changes to the tax structure, Piyush Goyal - presenting the NDA government’s last budget in an election year - proposed no tax on income up to Rs 5 lakh.(Pradeep Gaur/HT Photo)
         

Tax relief for the middle class was one of the highlights of Finance Minister Piyush Goyal’s Budget 2019 speech.

Proposing several changes to the tax structure, Piyush Goyal - presenting the NDA government’s last budget in an election year - proposed no tax on income up to Rs 5 lakh. (Live updates)

Read: Highlights of Budget 2019

Currently, income up to Rs 2.5 lakh is exempt from personal income tax. Income between Rs 2.5 and Rs 5 lakh invites 5 per cent tax, while that between Rs 5 lakh and Rs 10 lakh is taxed at 20 per cent. Income above Rs 10 lakh is taxed at 30 per cent.

Also read: 2019 Budget Summary: Middle class gets tax relief, farmers assured income in election budget

Here are six highlights of the changes in personal tax structure:

* Income up to Rs 5 lakh to get full tax rebate. So in next fiscal, if an assessee has net taxable income of up to Rs 5 lakh in the financial year, he/she is allowed to claim the entire tax payable as tax rebate.

*Individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities.

* Standard deduction, which reduces your taxable income thereby reducing your tax liability, has been increased from Rs 40,000 to Rs 50000.

* TDS threshold on rental income raised from Rs 1, 80,000 to Rs 2, 40, 000 lakh.

* TDS slab on interest on bank, post office deposits raised from Rs 10,000 to Rs 40,000. This means interest income on bank/post office deposits up to Rs 40,000 will not be subject to TDS.

* Exemption on levy of income tax on notional rent on a second self-occupied house is also now proposed. Currently, income tax on notional rent is payable if one has more than one self-occupied house.

Also read: Budget 2019: Here’s how much income tax you will pay after new slabs

For detailed budget coverage, click here: www.livemint.com