Tax implications for the common man from Interim Budget 2019-2020: Angel Broking

Reaction on Budget 2019 by Mr. Vaibhav Agrawal (VP- Head of Research and ARQ, Angel Broking):

"The budget has given a significant boost by putting more money in the hands of the middle class tax payers. It has been proposed that Individual tax payer having taxable annual income upto Rs. 5 lakhs shall get full tax rebate.

In addition, the standard deduction limit has also been increased to Rs. 50,000 per year as against Rs. 40,000 currently. The overall limit under Section 80C and Section 24 for interest on home loan have been kept constant. However, since the rebate up to Rs. 5 lakhs is on taxable income, your actual exempt income can be Rs. 9,50,000 assuming that you utilize your Section 80C investments Rs. 1,50,000, NPS limit ?50,000 and the home loan interest limit Rs. 2,00,000 to the fullest. Also the concept of notional rent on second home has been scrapped.

TDS exemption limit on bank and post office deposits have been increased from Rs. 10,000 to Rs. 40,000 per year thereby easing tax administration for small savers. But the biggest change is on the proposed changes in tax administration over the next 2 years wherein all tax returns will be processed in 24 hours and the refunds will be processed simultaneously. It is definitely a significant budget from the income tax perspective."

Source : Equity Bulls

Keywords