Union Budget 2019: Key highlights of income tax proposals

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Acting Finance Minister Piyush Goyal doled out tax sops to the middle class on Friday, which includes doubling of income tax exemption limit to Rs 5 lakh.

The key highlights of income tax proposals in Union Budget 2018-2019 are:

• No tax for Individual taxpayers with annual income of up to Rs 5 lakh. While presenting the Interim Budget for 2019-20 in Lok Sabha, Piyush Goyal said, "Individuals with income up to Rs 5 lakh will not be required to pay any tax."
• Individuals who make investments of Rs 1 lakh 50 thousand in tax saving schemes will not be required to pay tax up to a gross income of Rs 6.5 lakh ( 5 lakh + 1.5 lakh). "This will provide a benefit of Rs 18,500 to 3 crore middle-class taxpayers self-employed, senior citizens," he said, adding the number of beneficiaries will go up for those who have made investments in mediclaim and pension.
• Standard tax deduction for salaried persons raised to Rs 50,000 from Rs 40,000. No tax will be deducted on interest earned on bank and post office deposits of up to Rs 40,000 annually, up from Rs 10,000 currently. This will benefit three crore salaried individuals.
• TDS threshold on interest on bank and post office deposits has been raised from Rs 10,000 to Rs 40,000.

The Budget also proposed to exempt tax on notional rent for unsold housing units for two years.

Goyal also proposed that benefit of rollover of capital tax gains be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains of up to Rs 2 crore.

However, it can be exercised once in a lifetime, he added. The Income Tax department will move towards faceless assessment and verification of returns, Goyal said on Friday.

(with inputs from PTI)

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