homepersonal finance NewsUnion Budget 2019: Here are 8 key highlights of tax exemption announced by FM Piyush Goyal

Union Budget 2019: Here are 8 key highlights of tax exemption announced by FM Piyush Goyal

Union Budget 2019: Here are 8 key highlights of tax exemption announced by FM Piyush Goyal
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By CNBC-TV18 Feb 2, 2019 11:38:14 AM IST (Updated)

In a major relief for the salaried class, finance minister Piyush Goyal announced full tax exemption for income up to Rs 5 lakh per year. Individuals falling under the said tax slab will get full tax rebate.

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He further added that all the direct tax relief measures will be applicable from April 1 of the current fiscal year.
The government said it will increase the exemption limit for income tax paid by individuals from the current Rs 2.5 lakh to Rs 5 lakh, providing major relief to salaried class. This translates to a benefit of Rs 18,500 crore to more than 3 crore taxpayers.
Here are the key highlights:
  • Taxable Income up to Rs. 500,000/- will be exempted.
  • Standard deduction for salaried persons will be raised from Rs 40,000 to Rs 50,000.
  • Tax on notional house property income is exempted up to two self-occupied houses. 
  • TDS on interest (section 194A) on bank and post office deposits – Threshold limit raised from Rs 10,000 to Rs 40,000.
  • TDS on rent (section 194I) – Threshold limit raised from Rs 180,000 to Rs 240,000.
  • Capital Gain Investment Scheme – On the capital gain up to Rs 2 crore can take benefit of investments in up to two residential houses. (available once in a lifetime).
  • Exemption to affordable housing Projects extended up to March 31, 2020. 
  • Notional Income tax under income from house property kept as inventory, can avail exemption up to two years instead of 1 year.
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