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Income Tax Budget 2019: Know what Budget holds for taxpayers!

Finance Minister Nirmala Sitharaman presented Union Budget 2019 along with the Finance Bill. The Bill will give effect to the cabinet decision of increasing the exemption limit on final withdrawal from National Pension Scheme (NPS) from current 40 percent to 60 percent of payment.

Jul 6, 2019 10:59 IST
Nirmala Sitharaman Income Tax Budget 2019

Income Tax Budget 2019 of Nirmala Sitharaman: Finance Minister Nirmala Sitharaman presented the Union Budget 2019 in the Lok Sabha on July 5, 2019 along with the Finance Bill. The Bill will give effect to the cabinet decision of increasing the exemption limit on final withdrawal from National Pension Scheme (NPS) from current 40 percent to 60 percent of payment. The Budget provides impetus to PM Narendra Modi's dream to make India a USD 5 trillion economy by 2020. Termed as “Green Budget” by PM Modi, the annual document announces no change in Income Tax slabs and announces increase in custom duty on Gold and other precious metals from 10 percent to 12.5 percent. It eases tax complaince and offers taxation relief for individuals buying affordable houses and electric-vehicles. The Budget prioritises transformation of 'Gaon', 'Garib' and 'Kisan'.

Income Tax Slabs of  Individual below 60 years of age

Income Slab

Income Tax Rate

Up to Rs 2.5 lakh

Nil

Rs 2. 5 Lakh to Rs 5 Lakh

5% of Total income minus Rs 2,50,000

Rs 5 Lakh to Rs 10 Lakh

Rs 12,500 + 20% of Total income minus Rs 5,00,000

Rs 10 Lakh and above

Rs 1,12,500 + 30% of Total income minus Rs 10,00,000

Income Tax Slabs of individual between 60 and 80 years of age (Senior Citizen)

Income Slab

Income Tax Rate

Up to Rs 3 lakh

Nil

Rs 3 lakh to Rs 5 lakh

5% of Total income minus Rs 3 lakh

Rs 5 lakh to Rs 10 lakh

Rs 10,000 + 20% of Total income minus Rs 5 lakh

Rs 10 lakh and above

Rs 1,10,000 + 30% of Total income minus Rs 10 lakh

Income Tax Slabs for individuals above 80 years of age (Super Senior Citizen)

Income Slab

Income Tax Rate

Up to Rs 5 lakh

Nil

Rs 5 lakh to Rs 10 lakh

20% of Total income minus Rs 5 lakh

Rs 10 lakh and above

Rs 1 lakh + 30% of Total income minus Rs 10 lakh

Key Changes introduced in Tax Regime

Surcharge on individuals having taxable income from Rs 2 crore to Rs 5 crore; and 5 crore and above will be enhanced. The effective tax rate will increase by around 3% and 7% respectively.

• In terms of Angel Tax Issue, "startups and investors who file requisite declaration & provide information in their return will not be scrutinised in respect of share premiums."

• Relief to be provided in levy of Securities Transaction tax

Businesses with annual turnover of over Rs 50 crore will offer low-cost digital payments. No charges will be levied on customers and merchants. RBI will bear these expenses.

• Additional income tax deduction of 1.5 lakh rupees on the interest paid on loans taken to purchase e-vehicles.

• Additional deduction upto Rs. 1.5 lakh will be provided to boost affordable housing for interest paid on loans borrowed up to 31st March 2020 for house valued up to Rs. 45 lakh.

Faceless Income Tax Assessment in electronic mode to be launched in 2019 in a phased manner involving no human interface, to reduce taxpayer trouble.

• Several Direct Tax Incentives to be provided to International Financial Services Centres (IFSCs)

PAN and Aadhaar made interchangeable for convenience of tax payers; Income Tax returns can now on be filed using Aadhaar number, if PAN card not available and vice-a-versa.

• Export duty on raw and semi-finished leather rationalised

• Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Re 1 per litre on petrol and diesel

• Custom duty hiked on gold and other precious metals

 

Here are the live updates of the Budget 2019 speech:

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 13:10 pm: Increase in custom duty on Gold and other precious metals from 10 percent to 12.5 percent.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 13:05 pm: Custom duty exempted from certain parts of e-vehicles and some other electronic products.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:59 pm: Individual Taxpayers

Surcharge to be increased to 3 percent and 7 pecent on individual with income from 2 crore to 5 crore; and with Rs 5 crore and above, respectively.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:55 pm: Digital Payments - Levy of TDS of 2 percent on cash withdrawal of more than Rs 1 crore from bank account in a year, to boost digital payments.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:50 pm: Ease for taxpayers:

Interchangebility of PAN & Aadhaar Card:
Taxpayers can now quote Aadhaar, if they do not have PAN and vice-a-versa.

Moreover, Budget 2019 proposes issuing of the Aadhaar card to NRIs with Indian passports soon after their arrival in India, without waiting for the mandatory 180 days.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:48 pm: Affordable housing. For acquiring affordable house of Rs 45 lakhs, individual will get deduction of Rs 1.5 lakh. Net gain will be Rs 7 Lakh, a gain for middle-income taxpayers.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:45 pm: Start-ups in India. Start ups are not required to justify share market values. valuation of share market will be beyond Income tax scrutiny.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:45 pm: Government has already asked the GST Council to reduce tax rate from 12% to 5% on electric-vehicles. Government will provide additional income tax deduction of 1.5 lakh rupees on interest paid on loans taken to purhase electric vehicles.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:42 pm: Electric vehicles: Leapfrog as a hub of manufacturing electric vehicles including solar charged batteries.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:38 pm: Phased reduction in rates in case of corporate tax. All companies having annual turnover of Rs 400 crores, will now be under the bracket of 25 percent tax. This will cover and benefit 99.3 percent of all the companies.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:35 pm: Direct tax revenues increased to 11.37 lakh crores to 2018-19. It is growing by double digit every year.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:35 pm: Sitharaman appreciates honest taxpayers.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:32 pm: New Re 1, Rs 2, Rs 5, Rs 10, Rs 20 coins will be issued shortly.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:30 pm: Strategic disinvestment of select Central Public Sector Enterprises will continue to be on priority list of the Government. strategic disinvestment of Air India will re-initiate; Rs 1 lakh 5000 rupees is disinvestment target for 2019-20.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:29 pm: Retail participation in CPSEs. Government will reallign its participation in CPSEs.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:25 pm: Return of Regulation Authority from National Housing Board to RBI.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:25 pm: NBFCs are playing important role in scaling consumption demands.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:24 pm: 70,000 crore will be provided to banks

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:23 pm: Public Sector Banks reduced by 8; 6 Banks have come out of PCA.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:22 pm: Provision coverage ratio at its highest in 7 years.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:20 pm: NPAs have reduced by over 1 lakh crore over the last year.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:12 pm: Nari to Narayani, Role of women is essential for growth of economy. A committee will be set up to augment the contribution of women. Lok Sabha Elections 2019 showed record turnout of women voters at par with men. There are 78 women MPs.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:10 pm:
100 new clusters will be set up in 2019-20 under ‘SFURTI’ to enable 50,000 artisans to join the economic value chain

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:05 pm:
Labour laws will be converted into 4 Labour Codes. This will rationalise the return filling process.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 12:05 pm:
Pradhan Mantri Karam Yogi Mandhan Scheme secures the future for retailers with less than 1.5 cr turnover by providing them pension cover.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:55 am: 9.6 crore toilets have been constructed since 2014. 5 lakh villages are now open-defecation free.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:45 am: Gaon (village), Garib (poor) and Kisan (farmers) are at the Centre of the Government's efforts.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:42 am: Credit Guarantee Enhancement Corporation will be set up in 2019-20 to deepen markets for long-term bonds with specific focus on infrastructure sector.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:40 am: Sitharaman proposes to merge NRI portfolio investment scheme route with foreign portfolio investment route.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:35 am: India to become more attractive FDI destination. Government will examine suggestion of opening FDI in aviation, insurance, construction.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:30 am: SEBI to launch Social stock exchange for listing social organisations working for social welfare objective.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:20 am: From 1.85 trillion dollars in 2014, the economy has reached 2.7 trillion US dollars in five years

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:15 am: India expected to become a USD 3 trillion economy this year: Sitharaman

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 11:05 am: Economic Survey 2019 Analysis: 7% GDP growth, $5 Trillion economy, BADLAV, Sundar Bharat & More

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 10:55 am: Union Budget 2019 live online streaming Nirmala Sitharaman

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 10:50 am: When and Where to watch Union Budget 2019

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 10:40 am: Finance Minister Nirmala Sitharaman Parents, Savitri and Narayanan Sitharaman arrive at the Parliament.

Nirmala Sitharaman Income Tax Budget 2019 Live Updates @ 10:30 am: In the Interim Budget 2019, the then Finance Minister Piyush Goyal announced a good income tax rebate for individual taxpayers with taxable annual income up to Rs 5 lakh, the move benefitted over three crore taxpayers. However, nothing was announced for those with taxable income above Rs 5 lakh. They were just given an increased standard deduction and TDS limits.