The Union Budget of India assessment year 2020-21 was presented by acting Finance Minister Piyush Goyal on 1 February 2019.
A quick review (Limited Information) of the applicable Income tax Rates income tax act after incorporating amendments proposed by the Budget of 2019 are given below for ready reference and information:-
Budget Highlights 2019-20 – SGC
- Education & Health Cess – 4% of the Income Tax & Surcharge
- Please note that Individual taxpayers having taxable annual income up to Rs.5 lakhs will getfull tax rebate and therefore will not be required to pay any income tax. Accordingly, evenpersons having gross income up to Rs.6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc. to the extent of Rs.1,50,000/‐
- Standard deduction has been increased from Rs.40,000/- to Rs.50,000/- for all salaried employees.
- Levy of Income Tax on Notional rent on 2nd Self Occupied House has been made exempt which was taxable earlier.
- Threshold limit for deduction of tax on interest earned on Bank Deposits/ Post office Deposits has been raised from Rs.10,000/- to Rs.40,000/-
- Threshold limit for deduction of tax on rent has been raised from Rs.1,80,000/- to Rs.2,40,000/-
Regards, Rajesh Mittal
(Author can be reached at rajesh.mittal@sgcservices.com)
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