Budget 2019: How will it impact your pocket?
Hey, did you know that your Aadhar and PAN cards are now interchangeable while filing income tax return?
Finance Minister Nirmala Sitharaman in her maiden Budget speech today didn't propose any change in the income tax slab. But she did announce a surcharge for the higher income group individuals having taxable income between Rs 2-5 crore to 3 per cent and for those earnings above Rs 5 crore to 7 per cent.
If you’re a taxpayer, this is how the Budget by BJP-led NDA government 2.0 means to you:
- You don’t have to pay income tax if your annual income is up to Rs 5 lakh. Also, there’s no change in the income tax slabs.
- The Budget 2019 proposes to make lump sum withdrawal of 60 per cent from the National Pension Maturity (NPM) totally tax free at the time of maturity. This means, that a person on maturity at the age of 60 would be able to withdraw up to 60 per cent of the corpus without paying any tax.
- The Budget proposed to allow an additional deduction of up to Rs 1.5 lakh for interest paid on loans borrowed up to Mar 31, 2020 for purchase of an affordable house valued up to Rs 45 lakh. This means that a person purchasing an affordable house will now get an enhanced interest deduction up to Rs 3.5 lakh.
- You can now file your Income Tax Return with your Aadhar card—by entering your Aadhar number—if you don’t have/ lost your PAN card.
- Faceless income tax assessment in electronic mode involving no human interface to be launched this year in a phased manner, to reduce taxpayer harassment.
- The Budget proposed an additional income tax deduction of Rs 1.5 lakh on interest paid on electric vehicles loan.
- You will now have to shell out more for fuel as the Budget proposed an additional excise duty of Re 1/litre on petrol, diesel for road and infrastructure.
- The import duty on gold and precious metals have also been hiked from 10 per cent to 12.5 per cent.
- Further, to discourage business payments in cash, Tax Deduction at Source (TDS) of 2 per cent to be levied on cash withdrawal exceeding Rs 1 crore in a year from a bank account.
- The Union Budget 2019-20 proposes to make return filing compulsory for persons, who have deposited more than Rs 1 crore in a current account in a year, or who have expended more than Rs. 2 lakh on foreign travel or more than Rs. 1 lakh on electricity consumption in a year.