Benefit from this budget: The interim budget of the central government has brought special benefits to low and lower middle income groups, while there is nothing more for the upper middle class and the rich. The biggest benefit of salaried and pensioners 2019 proposals is to reduce the tax burden. Tax on income tax up to Rs 5 lakh in budget proposal has been eliminated. Apart from this, the tax on the deemed rent of another house lying vacant has also been abolished.
1. Budget deduction for salaried and pensioners in 2019 has been increased. Standard deduction for the current financial year is Rs 40,000, which is proposed to be increased to Rs 50,000 in the financial year 2019-20. With the increase in standard deduction, the savings of Rs 5-10 lakh will be saved directly to Rs 2080. After this increase, people with an income of 10 lakh to 50 lakh annually will save Rs 3,120, while those earning Rs 50 lakh-1 crore will be saved by Rs 3,432. Those who earn more than Rs 1 crore will be saving directly Rs 3,588. Ces and surcharges have been included in this saving.
2. The biggest benefit of Budget 2019 proposals will be to all those who have net taxable income up to Rs 5 lakhs. According to the budget proposals, people who come under this scope will not have to pay any tax. The people who came in this category were giving the minimum 13,000 rupees as tax. In this case, people coming in this category will be saving up to Rs 13,000 directly. According to Shalini Jain, tax partner of Peoples Advisory Services in Ernst & Young, ‘This benefit is for the rebate of the entire tax payable to those whose taxable income is up to Rs 5 lakhs. ‘
benefit from this budget
If your taxable income crosses this level then you have to pay taxes according to the regular tax slab of 5 per cent, 20 per cent and 30 per cent. Also, you have to give cess and surcharges too. For example, if a person earns 6.5 lakh rupees in a year and invests Rs 1.5 lakh under Section 80C, then he can claim deduction of 1.5 lakh rupees from his gross income and reduce the income to 5 lakh rupees.
3. In addition to this, those who had 2 houses had to pay the income tax on their second House Deemed Rent. Even if the second house has not been left empty. Earlier, the house was considered as a self-occupied property and if the person is living in it or it was empty, then there was no tax to be paid on this. This announcement of the government has brought great relief to the owners of two houses / flats and this can encourage people to invest in properties.
4. The Central Government has increased the TDS limit for the income coming from the bank and post office deposits for the children up to the age of 60 years in 2019. Apart from this, the TDS limit has been enhanced for non-indigenous payers.
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