Majority of people in India see budget just for the sake of taxation benefits. They aren’t much worried about the tax revenue or the fiscal targets of the country but income tax slabs, deductions and a lot more.
So, to help your cause, we have summarized all major tax takeaways into ten points which will help you analyze its overall impact on your lives.
Here are the ten major tax decisions of budget 2019.
The government has proposed to extend the benefit of reduced tax rate of 25% to the companies up to the turnover of Rs.400 crore. Currently, it was applicable for the companies with turnover up to Rs.250 crores.
2. Rich Individuals to pay more tax by 7%
If you are earning more than Rs.2 crore annually, then we have a bad news for you. The government has proposed to enhance surcharge on individuals having taxable income between Rs.2 crore to 5 crore by 3% and income above 5 crores by 7%.
3. Affordable housing
An additional deduction of Rs.1.50 lakh on interest paid on home loan borrowed up to 31st March, 2020 has been proposed. With this, a total deduction on interest will amounts to Rs.3.50 lakh.
4. Additional deduction on electric car
Additional income tax deduction of Rs.1.5 lakh on electric vehicle has proposed by the government.
5. Faceless e-assessment
To simplify the tax laws assessment procedures and to minimize the corruption which emerges from physical encounter of department official and assessee, the government has decided to introduce faceless e-assessment with no human interface.
6. Petrol, diesel and gold to get costlier
Inflation will rise because government has decided to levy Re.1 per litre on petrol and diesel. Further, government has also proposed to increase custom duty on gold and other precious metals from 10% to 12.5%.
7. Legacy Dispute Resolution Scheme
As per the recent data, 3.75 lakh crore is blocked in litigations in service tax and excise. So, in order to unload this huge baggage on business and to reduce pending litigations, government has proposed a legacy dispute resolution scheme to facilitate quick closure of these litigations.
8. TDS by individuals or HUF
It is proposed to insert a new provision making it obligatory for such individuals and HUF to deduct TDS @ 5% if the annual payments made to contractor or professional exceeds Rs.50 lakh.
9. Interchangeability of PAN and Aadhar
Though it is not a tax reform, but it is important with regard to its impact. From now on, Aadhar card can be used wherever PAN card is used, even for income tax return filing purposes.
10. Compulsory filing of Income tax return (ITR)
It is proposed by the government to make return filing mandatory for the following people;
Those who had deposited more than one crore in a current account in a year.
Those who had expended more than Rs.2 lakh on foreign travel.
Those who had expended more than Rs.1 lakh on electricity consumption.
The above changes make the income tax more complex for a common man to understand. Therefore, if you need any advice on taxation matters, please contact hubco.in.