Check Out Top Income Tax Changes in 2019 in Brief
TOPICS : Politics
Jan 21 , 2020 19 min read 806 Views 1 Likes 0 Comments
Changes took place in the personal taxation in 2019 when many voices were behesting for revamp in tax slabs. Although no alteration was made in tax slabs but major declarations including the extension of tax rebate for individuals with income up to INR 5 lakh, hike in the standard tax deduction to INR 50,000 from INR 40,000 for salaried individuals and Tax Deducted at Source (TDS) threshold on interest from deposits in Bank/Post Office from Rs 10,000 to Rs 40,000, were announced by the government. These changes are beneficial for salaried people & pensioners and help them save more tax. On another note, the super-rich suffered because of such changes. Here are the top income tax changes that were announced in the year 2019.CBDT Notified PAN-Aadhaar Interchangeability Central Board of Direct Taxes - An apex body for direct taxes issued a notification regarding interchangeability between permanent account number (PAN) and Aadhaar number. This notification was issued in the wake of FM Nirmala Sitharaman’s announcement in her maiden budget that Aadhaar number can be quoted instead of PAN wherever it is mandatory to furnish PAN.Interim Budget in February 2019 declared no tax liability for individuals with taxable income less than or equal to INR 5 lakh. This was a big declaration as it takes into account a major part of fresh working professionals as well as first-time taxpayers. According to the announcement, if the net taxable income of an assessee does not surpass the limit of INR 5 lakh, then the assessee will not be liable to pay any tax and he is eligible to claim tax relief u/s 87A.
- More than 100 forms and returns have been amended by CBDT.
- Now, the taxpayers can quote Aadhaar number in forms such as Form 15G, Form 15H and so on.
- No Tax on Taxable Income Less Than INR 5 Lakhs
- It is mandatory to file an income tax return in order to claim the tax relief.
- The amount of tax benefit u/s 87A has been increased from INR 2,500 to INR 12,500.
- Tax-Free Withdrawal From NPS
- Upon retirement, NPS investors have to use 40% of the corpus to buy an annuity.
- Only 60% of the corpus will be allowed to be withdrawn at the time of maturity and the whole 60% is now tax-free.
- Increase in TDS Threshold to INR 40,000
- The TDS threshold for post-office and bank deposits has been increased from INR 10,000 to INR 40,000.
- Small taxpayers will not have to submit Form 15G when the total income from interest is not more than INR 40,000.
- This benefit of the standard deduction is available for salaried class
- Pensioners can also claim this benefit if their pension amount is taxable under the “salary” head.
- This benefit is allowed only when the LTCG from selling a house is not more than INR 2 crore.
- This benefit can be availed only once in a lifetime by an individual.
- Availment of housing loan in the period between April 2019 to March 2020.
- Evaluation of the house property at not more than INR 45 lakh.
- The taxpayer is not owning any house during the sanctioning of the loan.
- This surcharge will be leviable on income other than from capital gains.
- The previous surcharge of 10% or 15% will be applicable to capital gains from the stock market.
- New surcharge rates will be applicable to income from all other sources like salary, interest, rent, etc.
- When the expenditure on foreign travel by the individuals is more than INR 2 lakh in a fiscal year.
- When the electricity expense/bill paid by the individuals in a year is more than INR 1 lakh.
- When the individuals depositing in a current account in a year is more than INR 1 crore.
- When the individuals claiming a capital gain exemption (u/s 54/54F) which brings them within the exemption purview
- This TDS should be deducted while making payment of the sum or crediting the amount.
- The tax deducted should be deposited by an individual along with a challan-cum-statement in Form 26QD, within 30 days from the last date of the month in which the TDS was deducted.
Keywords : Income tax tax form 15g form15h income tax return filing