Union Budget: No change in Income Tax slab rates but additional deductions on EVs and affordable housing
Income Tax changes in Budget Live update: Here are the updates of Budget 2019, Income tax slabs and latest tax rates. Finance Minister Nirmala Sitharaman is all set to present first Budget of the NDA 2.0 government, on July 5, 2019 (today). The taxpayers would be glued to their seats to know about the changes government will bring in the Income Tax regime.
Income Tax changes in Union Budget LIVE: New in seat, Finance Minister Nirmala Sitharaman is all set to present first Budget of the NDA 2.0 government, on July 5, 2019 (today). The taxpayers would be glued to their seats to know about the changes government will bring in the Income Tax regime. The individual taxpayers are expecting to have tax relief to have more disposable or income to invest. Zee Business Online had also learnt that the government might increase the Section 80C limit from Rs 1.5 lakh to Rs 2 lakh. During the Interim Budget 2019-20, the government had increased the tax rebate to Rs 12,500 for taxpayers whose taxable income was up to Rs 5 lakh. However, there was no change brought in the basic exemption limit. While the middle-class salaried taxpayers who were ruled out of the previous exemption would expect the new FM to increase the basic exemption limit from Rs 2.5 lakh to Rs 3 lakh, to help the taxpayers who are not eligible for the Rs 12,500 tax rebate.
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Budget 2024 Costlier and Cheaper Items Live Updates: Pragmatic approach
"In this budget announcement, the government has taken a reflective and pragmatic approach, summarizing the achievements of the past decade rather than making bold announcements. This interim budget seems to be a strategic move, avoiding major actions before the upcoming election.
The emphasis on continuity and stability is evident, setting the stage for potential impactful measures in the post-election period. The extension of Ayushman Bharat cover to all Anganwadi and Asha workers, along with the consolidation of maternal and child healthcare schemes into a comprehensive initiative, demonstrates a commitment to inclusive healthcare. While it may be viewed as a status quo budget on the surface, it signifies a responsible and measured fiscal strategy, showcasing the government's dedication to maintaining a positive economic trajectory.
The anticipation of more detailed fiscal numbers and micro financial parameters will provide a clearer picture of the country's economic direction. Overall, the budget lays the foundation for future developments and affirms the government's confidence in the positive trajectory of the nation," said Avinash Deshmukh, COO, iThrive.
FM concludes her Budget 2019 speech in Parliament
"In the first 50 years after independence we emphasized on rights; marking 75 years we should place emphasis on our duty towards India without undermining our rights,'' FM said.
Budget 2019 speech: Direct Taxes on high income tax payers
A surcharge will be levied on individuals with taxable income of Rs 2 to 5 crore, and Rs 5 cr and above. The effective tax rate for these categories will increase by around 3 percentage points and 7 percentage points, respectively.
Budget 2019: Tarun Garg, Manager, DHS mentioned 10 key points from a direct tax perspective
1. Government to focus on ease of administration and collecting the taxes
2. The direct taxes have significantly increased over past couple of years by 78% INR 6.38 lakh crores to INR 11.37 lakhs crore between 2013-14 to 2018-19. The direct tax revenue has grown by double-digit
3. Corporate tax – Govt. to continue with a phased reduction in rate
4. On electric vehicles - aim to leap frog into a global hub of manufacturing electric vehicles inclusive solar storage batteries. GST Council to lower the GST rates from 12 to 5%
5. In order to make electric vehicles affordable to consumer, additional income tax deduction of INR 1.5 lakhs deduction on loans taken to purchase electric vehicles;
6. To encourage start-up growth in India, investors who file requisite declaration will not be subject to any scrutiny on valuation of share premium.
7. Additional deduction of INR 1.5 lakh available for interest on loans availed before 31 March 2020 in respect of affordable housing of upto INR 45 Lakhs
8. Pre-filling of income tax returns to be provided - reduce time taken to file tax returns, better reporting
9. E-assessments – central cell to be single point of contact, cases selected for scrutiny in a random manner, without disclosing the name and designation of the officer
10. Surcharge has been increased for highest income brackets - proposed to enhance surcharge in the income category of INR 2 cr. to INR 5 crore and INR 5 crore and above. Effective increase in surcharge would be 3% and 7% respectively.
Budget 2019 speech: Capital gains from sale of residential house for investment in start-ups
"The government has proposed to extend period of exemption of capital gains arising from sale of residential house for investment in start-ups to March 2021. This innovative measure will boost investments into start-ups in the country”, shares Megha Maan, Senior Associate Director, Research at Colliers International India.
Additional deduction of Rs 1,50,000 on housing loans
FM has also proposed an additional deduction of Rs 1,50,000 on interest on, loans borrowed under affordable housing until 2020.
Budget 2019 speech: Interchangeability of PAN and Aadhaar
As more than 120 crore Indians now have Aadhaar, Sitharaman proposes to make the two documents interchangeable so that Aadhaar can be used for verification with no requirement for PAN.
Budget speech 2019: Coroporate tax now upto Rs 400 crore turnover
25 percent corporate tax rate is applicable to companies with an annual turnover of up to Rs 250 crore has been extended to companies with a turnover of up to Rs 400 crore. Now only 0.7 per cent of companies will remain outside of this 25 per cent rate.
Budget speech 2019: Income tax deduction to buy electric vehicles
FM announced an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer.
Startups and investors will not be subject to valuation of share premium
FM said, to resolve the issue of Angel Tax the startups and investors who file requisite declarations will not be bound to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny.
Startups will not be scrutinized under tax norms for funding
Indian startups raising funding will not be scrutinized under Income tax norms, said FM.
Budget 2019 speech: Infrastructure investment by the govt.
100 lakh crore rupees to be invested in infrastructure sector over next five years, Expert Committee to be set up to recommend structure and flow of funds through development finance institutions: FM
Budget speech: Loan to women SHG member under MUDRA scheme
One woman in every SHG shall be made eligible for a loan of 1 lakh rupees under MUDRA scheme, said FM.
Budget 2019 speech: Overdraft facility for women SHG member with Jan Dhan account
FM Sitharaman said that an overdraft of 5000 rupees will be allowed for every verified woman SHG member having a Jan Dhan account.
Budget 2019: Replacement of multiple labour laws into four codes
Tarun Garg, Manager, DHS said, ''The replacement of multiple labour laws into four codes is expected to streamline the process of registration, standardize the filing of returns, provide uniformity in defnitons across labour codes, significantly easing the business and reduce disputes.''
FM's Budget 2019 Speech reaction
Rajiv Singh, CEO Stock Broking said, ''Finance minister started the budget speech on a positive note and said that India should become 3 trillion $ economy in the current year itself. Reiterating that gone are the days of policy paralysis, she is laying out the growth path. Looking at the initial part of the speech, major push is given for infrastructure and its schemes like Gas and Water grids, Sagar mala, Bharat mala, Udaan to boost to the economy.''
Pension benefits to be extended to around 3 crore retail traders: FM
Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan
Plans to reach 5 trillion USD economy: ''Hearts of citizen filled with hope, trust and aspirations,'' says FM
1. Heavy investment in infrastructure
2. Digital Economy
3. Job creation
India to become $5 trillion economy in few years, says FM Sitharaman
Budget 2019 expectations for salaried class
Bhavin Turakhia, CEO, Zeta & Flock said, “For salaried employees, in the past few decades, we haven’t witnessed any increase in several allowances that are offered. For instance, the meal allowance is only Rs 50 per day; while children education allowance has a limit of just Rs 100 per month and the driver salary limit is only Rs 900 per month. It would be of great benefit for the salaried people employees if the Union Budget 2019 considers increasing the limit of such employee tax benefits.”
Nirmala Sitharaman starts her Budget 2019 speech
Finance Minister Nirmala Sitharaman starts making Budget 2019 speech in Parliament, tables Modi government's achievements for the economy.
Budget 2019 copies reach Parliament ahead of FM's speech at 11.00 a.m
Expectations from Budget 2019 by Tarun Garg, Manager, DHS
''The government could consider increasing the threshold limit of Long Term Capital Gains (LTCG) on sale of listed equity shares and units of equity-oriented mutual funds from Rs 1 lakh per financial year to Rs 2 Lakhs per financial year,'' said Garg.
1. Reducing the holding period of debt funds by bringing down the cut-off limit to qualify for Long Term Capital Gains (LTCG) from three years to one year.
2. Increasing the threshold limit of exemption under Section 80C of the Income-tax Act, 1961 from Rs 1.5 Lakhs to Rs 2 Lakhs
3. Increasing the housing interest deduction from Rs 2 Lakhs to Rs 2.5 Lakhs
4. Separate deduction for investment in Equity Linked Saving Schemes – The government could consider excluding this deduction from the overall limit of Rs 1.5 Lakhs under Section 80CCE of the Income-tax Act, 1961, and may allow as a separate option.
5. National Pension Scheme may be made as a fully EEE (Exempt-Exempt-Exempt) scheme to align with other savings schemes such as PPF, Sukanya Samriddhi.
PM Narendra Modi arrives in Parliament ahead of Budget 2019
Changes in standard deduction and tax exemption
Mustafa Nadeem, CEO, Epic Research said the budget is likely to be what was presented back in the Interim Budget session. Though there are some expectations which various industries need at this point in time. For taxpayers, the standard deduction can be reduced to Rs 40,000 while Tax exemption is seeking up to 5Lac. First and most important is the liquidity crunch that is seen in the industry with the rising cost of capital resulting in a slowdown in the economy. – Despite the rate cuts we are seeing a lag effect in passing on to the benefit to the industry and hence the benefit is not seen.
Section 80-IBA of the Income Tax Act, TDS exemption on rental income
Rakesh Reddy, Director Aparna Constructions and Estates said, ''The Interim Budget had announced many initiatives like extending benefits under Section 80-IBA of the Income Tax Act, TDS exemption on rental income and tax exemption on notional rent etc to encourage home buying; the upcoming budget should raise the threshold of these incentives. They should revise the income tax slabs and reduce the overall tax expenditure. This will enhance the ability of the salaried class to invest in real estate. Expanding the availability of income tax deductions for home buyers can encourage new buyers and widen the market opportunity.''
Nirmala Sithraman meets President before Budget 2019 speech today
Watch this Zeebiz exclusive report: Changes expected in 80C and Income Tax exemption limit
FM Nirmala Sitharaman all set for Budget 2019 speech
New Finance Minister Nirmala Sitharaman today was seen breaking the tradtion by carrying a red bag with the Budget instead of a briefcase.
Stock Market outlook for Budget 2019
Jayant Manglik, President - Retail Distribution, Religare Broking told Zee Business Online on the budget day, markets will react to the Union Budget tomorrow and that could result in volatile move across the board. Since Nifty is trading closer to its crucial hurdle of 12,000, we suggest keeping extra caution in long trades. Also, we advise keeping leveraged positions hedged before the event. In case of decline, 11,800 would act as strong cushion.
On 4th July, the markets ended marginally higher amid volatility as participants preferred to sit on sidelines ahead of the Union Budget. The economy survey, wherein the GDP growth predicted at 7% for FY20, failed to excite the market. Mostly sectoral indices traded in line with the benchmark index and failed to show any major directional move. However, movement on the stock specific front kept the traders busy, Manglik added.
Income tax exemption for women
Yatish Mehrotra, CEO, Knowlarity Communications said, ''On the behalf of whole industry, we expect this budget to enable women, especially in the middle or lower income slabs with higher tax exemption rates. Also, we would expect the refund process to be easier, lower taxes and easily accessible loans.''
Interim Budget 2019
Piyush Goyal also announced some major announcements in the Interim Budget, presented before elections in February this year. In a major relief to taxpayers, Goyal had announced a full rebate on personal income up to Rs 5 lakh in a year to a 25 per cent hike in standard deduction threshold.
He also announced that the standard deduction would be raised to Rs 50,000 from Rs 40,000 and the TDS (tax deduction at source) threshold would be raised from Rs 10,000 to Rs 40,000 on interest earned on bank and post office deposits.
However, it will be an interesting thing to watch whether the government would ease the tax liabilities of the middle class further or not.
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