The Finance Minister presented Interim Budget for financial year 2019-20. This Budget 2019-20 offers huge tax reliefs to taxpayers effectively bringing down tax liabilities. On an average this is going to help taxpayers save large amount of money. Those benefits are as below:
Full Tax Rebate Increased
In Budget 2019-20, full tax rebate has been increased to Rs. 5,00,000 from Rs. 2,50,000. This will increase tax rebate from Rs. 12,500 from Rs. 2,500. Now taxpayers have not to pay any tax for income up to Rs. 6,50,000 if they invest Rs. 1,50,000 in tax saving avenues of investments under Section 80C.
Standard Deduction Increased
In budget standard deduction has been increased from Rs. 40,000 to Rs. 50,000
Interest from Bank and Post Office Deposit Increased
The TDS threshold on interest from bank and post office deposit has been increased from Rs. 10,000 to Rs. 40,000. For Senior citizens it has been increased to Rs. 50,000.
Increase in TDS on Rent Income
TDS limit on rent income has been increased to Rs. 2,40,000 from Rs. 1,80,000 in this budget.
Relief to House Owners
Taxpayers can now own two self-occupied houses without paying taxes on the notional rent on the second house. Also the capital gain exemption under section 54 has been extended to second house to maximum amount of Rs. 2 crores. However a taxpayer can claim such exemption only once in his/her life.