ITR filing: Individual taxpayers should know these 5 key points after Budget 2019

After June 15, individual taxpayers have started consulting their Chartered Accountants to file their income tax returns. However, after Budget 2019 presentation by Finance Minister Nirmala Sitharaman, few changes have also been proposed that taxpayers should know if they are planning to submit their returns. One such information is related to those working people whose employer if doesn't give them HRA, they can claim a deduction of up to Rs 5,000 per month. 

In the Finance Minister's maiden Budget 2019 on July 5, a slew of changes have been proposed. It has increased income tax exemption limit on National Pension Scheme (NPS) withdrawal to 60 per cent from the current 40 per cent. The move is stated to make the withdrawal from the pension scheme 100 per cent tax-free. Further, there are a few other such budget announcements and proposals that taxpayer should be aware of. 

1. If you are willing to purchase an electric vehicle in the period from April 1, 2019 to March 31, 2020, you will be able to avail a tax deduction of up to Rs 1.5 lakh on the interest of the vehicle loan. The move is to give a boost to the electric vehicle segment in India.

2. Residential house is a need of everyone, therefore the FM has proposed that if you are purchasing a house with stamp duty value up to Rs 45 lakh, you can avail an additional tax deduction of up to Rs 1.5 lakh for interest on home loan taken between the period of April 1, 2019 and March 31, 2020. Notably, for self-occupied house property, after claiming a deduction of Rs 2 lakh under the house property head, you can claim an additional deduction of up to Rs 1.5 lakh. But individuals should know that they should not own any other residential property at the time of loan sanctioning. 

3. For tax payers, the government has proposed to make permanent account number (PAN) and Aadhaar interchangeable for income tax return (ITR) filing. If you don't have a PAN, you can quote your Aadhar number instead. 

4. In Budget 2019, the income tax exemption limit on National Pension Scheme (NPS) withdrawal has been increased from 40 per cent to 60 per cent on the exit from the scheme. Now, the entire lump sum withdrawal from NPS (limited to 60 per cent of the total corpus) is now exempt from tax.

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5. Taxpayer should also know that it has become mandatory now to file an income tax return for deposit of Rs 1 crore in their current account, and have spent over Rs 2 lakh on foreign travel, or paid Rs 1 lakh or more on electricity bills. In such a condition, they will have to file income tax return irrespective of their annual income.