The interim budget 2019 has been presented by Piyush goyal on 1st Feb 2019. Interim Budget has been presented since,it is election year and there will be lok sabha election in may 2019.
Key highlights of Interim budget are as follows
- Direct Tax collections has increased from INR 6,38,000 Crores in 2013-14 to INR 12,00,000 Crores this year and the number of returns filed have increased from 3.79 Crores to 6.85 Crores.
- Standard Deduction under Section 16(ia) of The income tax act is being raised from the current INR 40,000/- to INR 50,000/-.
- Tax relief will be given to an Individual assessee having total income upto INR 5,00,000/- by way of amendment in Section 87A of The Income Tax Act, 1961. Such assessee shall be entitled to a deduction of 100% of assessed income-tax or an amount of INR 12,500/-, whichever is less.
- It has been proposed to exempt levy of income tax on notional rent on second self-occupied house under Section 23 of The Income Tax Act, 1961.
- The TDS threshold for Interest earned on bank/post office deposits is being raised from INR 10,000/- to INR 40,000/- under Section 194A(3)(i) of The Income Tax Act, 1961.
- The TDS threshold for deduction of tax on rent has been increased from INR 1,80,000/- to INR 2,40,000/- under Section 194I of The Income Tax Act, 1961.
- GST turnover limit has been increased from INR 20,00,000/- to INR 40,00,000/-.
- The benefit capital gains under Section 54 of The Income Tax Act, 1961 is being increased from investment in one residential house to two residential houses for a tax payer having capital gains up to INR 2 crores.
- The benefit of deduction under section 80-IBA of The Income Tax Act, 1961 has been extended for one more year.
- Gratuity limit has been hiked from Rs 20 lakh to 30 lakh.