Income Tax Major Changes in Budget 2019

What is the discount?

Income Tax does not create any changes in income tax rates. However, income tax department has decided to give rebate under 87 (A). Also, if taxable income is up to Rs 5 lakhs, he will not have to pay any tax. That is, the total taxable income is Rs 6 lakh and if you have invested Rs 1 lakh in 80 C, then no tax will be paid on the balance amount Rs. 5 lakh taxable income.

Also, the standard deduction on salary has extended from Rs 40,000 to Rs 50,000.

 Tax-free interest

The Income Tax has also relief in the interest collected from post office and Bank FD and other Bank interest. Now the TDS will not be deducted from the post office and bank interest upto Rs 40,000. Also, the Savings Bank Account, the interest up to Rs 10,000 is tax-free as previous year 2018-19.

 What is the discount on rent?

Previous year 2018-19, TDS did not deduct of on Rental Income up to Rs 1.80 lakh. Now the limit has been extended to 2.40 lakh rupees. Also, another rebate has been given.

Income Tax Major Changes in Budget 2019 

Advantage in gratuity

This budget has taken a special benefit to those employed on Gratuity amounts. The Income Tax has extended the amount of tax-free gratuity by Rs 10 lakh to Rs 20 lakh to Rs 30 lakh. So that is, no tax will be deducted on the gratuity upto Rs 30 lakhs now.

 Discount in Capital Gain Tax

Capital gains tax on a sale of property under Income Tax Section 54 has been extended up to 2 crores. Previous year 2018-19, selling a house property, it was exempted from capital gains tax for buying a house within a set time. Now, if you purchase one property and buy two properties then this discount will carry on upto 2 crores once a lifetime .