Friday, February 1, 2019

BUDGET UPDATE



·       There is no change in income tax slab this year.

However, section 87A of the Income-tax Act to provide relief to the individual taxpayers by increasing the maximum amount of tax rebate to ₹ 12,500/- from existing ₹ 2,500/-. 

The tax rebate shall now be admissible to taxpayers having total income up to ₹ 5,00,000/-, instead of existing ₹ 3,00,000/-.

This means if your income is upto ₹ 5,00,000/-, you will receive Rebate under section 87A upto 12,500/-
( i.e. 5,00,000-2,50,000 X 5% ).

However if your income is above ₹ 5,00,000/-, this rebate will not be available….i.e. you have to pay at least 12,500/- plus cess.



·       Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.

·       TDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees

·       No tax on notional rent on second house 

·       Capital gains tax exemption under Section 54 raised to ₹2 crore 

·       Tax on notional rent on unsold inventory to not be paid for 2 years 

·       SC, ST welfare to get ₹76,800 crore FY20

·       Defence Budget crosses ₹3 lakh crore mark in FY20 Budget

·       SME loans with ticket size of ₹1 crore to get 2% interest subvention 

·       A National Programme for Artificial Intelligence covering 9 areas to be promoted 

·       Government to contribute 14% under New Pension Scheme 

·       Government to implement mega pension scheme for unorganized labour from this year itself . Mega pension scheme is for people with income up to ₹15,000 per month


·       Unorganised labour to get ₹3,000 per month after age of 60 under mega pension scheme 

·       Rashriya Gokul Mission cow scheme to get ₹750 crore in the current year

·       PM Kisan scheme for poor farmers to cost government ₹75,000 crore FY20. PM Kisan scheme to transfer cash directly to farmers' accounts. Poor farmers to get Rs.6000/- in three equal installments under PM Kisan scheme. Farmers up to 2 hectare of land to come under PM Kisan scheme.


All farmers affected by natural disasters to get 2% interest subvention upfront for entire loan period .

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