Interim Budget 2019: Taxation Reforms
- The direct tax collection has been increased substantially.
- The number of returns filed have increased from 3.79 crore to 6.85 crore, showing 80 percent growth in tax base since four years.
- In 2018-19, 99.54 percent of the income-tax returns were accepted as they were filed.
- All returns will be processed in 24 hours and refund will be initiated at the earliest.
- Cinema goers who were subjected to multiple taxes up to 50 percent are mostly paying much lower tax at 12 percent now.
- Exemptions from GST for small businesses has been doubled from Rs 20 lakh to Rs 40 lakh.
- Businesses comprising over 90 percent of GST payers will be allowed to file quarterly return soon.
- The GST collection for January 2019 is estimated at Rs 1.03 lakh crore.
- Abolished the duties on 36 capital goods. Indian Customs is introducing full digitization.
- Individual tax payers with taxable income of up to Rs 5 lakh will get full tax rebate from now on.
- Those earning Rs 6.5 lakh will not have to pay tax, if they invested in specified savings such as PF, PPF, etc.
- However, the tax slabs will remain unchanged.
- This move will benefit around 3 crore middle class tax payers.
- For salaried persons, Standard Deduction is being raised from the current Rs 40,000 to Rs 50,000.
- The Tax Deducted at Source (TDS) on fixed deposits and postal deposits will be exempted for interest earned up to Rs 40,000 from Rs 10,000 currently.
- The rent up to Rs 2.4 lakh will be exempted from TDS.
- The benefit of capital gains of up to Rs 2 crore will be increased to investment on two residential houses. This benefit can be availed only once in a lifetime.
- The benefit of the section 80IBA of Income Tax Act will be extended for one more year for availing of the affordable housing.
