February 02, 2019

Interim Budget 2019 - Highlights and Analysis

The Interim Budget for 2019 was presented by the Finance Minister in Parliament. The Finance Minister observed in his speech that Budget 2019 is not merely an Interim Budget but a medium of the country’s development journey and through the Interim Budget, there is an attempt to set the momentum for growth.
 
While thrust in the pre-election Budget has been on providing relief to farmers and lower income groups, significant relief has been provided to the middle-class taxpayers by way of rebate on taxable income upto Rs. 5 lakhs and increased standard deduction for salaried employees, widening the scope of exemption in respect of capital gains tax arising out of sale of residential property and lesser tax outgo on income from house property. The real estate sector has been given impetus by amendment in the Income-tax laws. The Finance Minister in his speech also proposed processing of income-tax returns within 24 hours and issue of refunds simultaneously, and anonymous computerized assessment within next 2 years without any personal interface between the taxpayer and the tax officer.
 
The following are some of the key tax proposals in the Finance Bill 2019:
  • While rates and slabs have been left unchanged, full tax rebate has been provided to Individual taxpayers having annual taxable income upto Rs. 5 lakhs.
  • For salaried persons, standard deduction has been raised from Rs. 40,000 to Rs. 50,000.
  • Exemption from income-tax on notional rent on second self-occupied house property.
  • Period of exemption from income-tax on notional rent on unsold inventories increased from 1 to 2 years.
  • Benefit under section 54 of the Income-tax Act, 1961 (“the Act”) in respect of capital gains increased from investment in one residential house to two residential houses for capital gains upto Rs. 2 crores, which can be availed once in a lifetime.
  • Benefit under section 80-IBA of the Act extended by one year for housing projects approved upto 31st March 2020.
 
To read the complete Interim Budget 2019 - Highlights and Analysis, click at the download below.
 
For any details and clarifications, please write to Mr. Neeraj Jain at neeraj@vaishlaw.com

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