The Finance Minister has tabled today, the Union General Budget 2019-20 in the Parliament. Unelevated are the latest Income Tax Slab Rates for FY 2019-20 or AY 2020-21. (FY is Financial Year and AY is Assessment Year)
Latest Income Tax Slab Rates FY 2019-20
The income tax slabs & rates are categorized as below;
• Individual resident weather-beaten unelevated 60 years.
• Senior Citizen (Individual resident who is of the age of 60 years or increasingly but unelevated the age of 80 years at any time during the previous year) &.
• Super Senior Citizen (Individual resident who is of the age of 80 years or increasingly at any time during the previous year).
Budget 2019-20 & Personal Finance: Key Highlights
Below are the latest personal finance proposals that have been made in Budget 2019-20 ;
• Income up to Rs 5,00,000 to be exempt from income tax. Individual taxpayers having taxable yearly income up to Rs 5 lakhs will get full tax rebate (u/s 87A) and therefore will not be required to pay any income tax.
• So those with income up to Rs 5 lakh and flipside Rs 1.5 lakh in investments (u/s 80c) totaling Rs 6.5 lakh will have to pay no tax. This proposal may goody nearly Rs 3 crore middle matriculation income earners.
• I believe that if your taxable income is increasing than Rs 5 Lakh, this tax rebate is not applicable. So, there is no change/impact for the tax assessees who fall under 20% or 30% Tax Slab Rate.
• Kindly note that there is no transpiration in Tax Slab Rates.
• The current Standard Deduction of Rs 40,000 for FY 2018-19 is proposed to be increased to Rs 50,000 for FY 2019-20.
• Proposal to not to deduct TDS of up to Rs 40,000 on interest income from Bank / Post office deposits (the current FY 2018-19 TDS threshold limit u/s 194A is Rs 10,000).
• Currently, income tax on notional rent is payable if one has increasingly than one self-occupied house. No tax on notional rent on Second Self-occupied house has been proposed. So, you can now hold 2 Self-occupied properties and don’t have to show the rental income from the second SoP as notional rent.
• The goody of rollover of wanted gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses for a taxpayer having wanted gains up to Rs 2 crore. This goody can be availed once in a lifetime.
• TDS threshold for home rent paid by non-individuals has been increased from Rs 1.8 lakh to Rs 2.4 lakh p.a.
• All income tax returns to be processed within 24 hours and refunds to be issued simultaneously
• Tax scrutiny will moreover now be washed-up electronically and there will be no interaction between the tax validity and the taxpayer.