Highlights of Budget 2019-20

Highlights of Budget 2019-20

Today, Finance Minister Nirmala Sitharaman has presented her first budget 2019-20 in Parliament. The Budget is aimed to boost infrastructure and foreign investment. The Finance Minister said in her budget speech that “Indian economy will grow to become three trillion dollar economy this year”. There are no changes in the tax slab and the personal income tax rate.  However, the super-rich will need to pay more surcharge for this year. In this post, let us see some key highlights of the Full Budget 2019-20.

Highlights of Budget 2019-20

There are no big changes in the full budget as major changes were already made in the interim budget 2019-20. Below are the key highlights of the Full Budget 2019-20

1. No changes in personal income tax slab for this year. However, if your income is up to Rs 5 lakh, your tax liability will be zero. You would get a full rebate through Section 87A.

2. Surcharge enhanced for the individual whose income is more than Rs.2 crores per year. There will be a 3% surcharge if the taxable income is Rs.2 to 5 crores, and 7% surcharge if the taxable income is Rs.5 crores and above.

3. Additional benefits of Rs.1.5 lakh on interest paid on home loan taken on or before 31 March 2020 for purchase of a house up to Rs 45 lakh.

4. Additional income tax benefits of Rs.1.5 lakh on the interest paid on the loan taken to purchase an electric vehicle.

5. Now, PAN and Aadhaar will be interchangeable for filing of income tax returns. This will benefit those who do not have PAN cards.

6. Aadhaar card will be issued to NRIs holding Indian passports upon their arrival without a mandatory waiting period.

7. The government will launch a new CPSE (Central Public Sector Enterprise) ETF on the lines of ELSS (Equity Linked Savings Scheme).

8. Pre-filled ITR forms will be made available to taxpayers soon. The pre-filled form will contain details of salary, bank interests, capital gains, and dividends, etc. This information will be collected from the bank, stock exchange, mutual funds, form 26AS, etc.

9. To promote digital payments, the government proposes 2% TDS on cash withdrawals of Rs.1 crore in a year from a bank account.

10. One woman in every SHG (Self-Help Group) will be eligible for a loan of Rs.1 lakh under Mudra loan scheme.

11. Rs.3,000 pension per month for workers from the informal sector.

12. Custom duty hike on gold and other precious metals from 10% to 12%.

Income Tax Slabs & Rates for FY 2019-20 (AY 2020-21)

Income Tax Slabs for Individual TaxPayers (Below 60 years of age)
Income Tax Slab	Income Tax Rate
Income up to Rs. 2,50,000	Nil
Income from Rs. 2,50,001 to Rs. 500,000	5%
Income from Rs. 500,001 to Rs. 10,00,000	20%
Income above Rs. 10,00,000	30%

Income Tax Slabs for Senior Citizens (Above 60 years and below 80 years of age)
Income Tax Slab	Income Tax Rate
Income up to Rs. 3,00,000	Nil
Income from Rs. 3,00,001 to Rs. 500,000	5%
Income from Rs. 500,001 to Rs. 10,00,000	20%
Income above Rs. 10,00,000	30%

Income Tax Slabs for Super Senior Citizens (Above 80 years of age)
Income Tax Slab	Income Tax Rate
Income up to Rs. 5,00,000	Nil
Income from Rs. 500,001 to Rs. 10,00,000	20%
Income above Rs. 10,00,000	30%

Also, read: What is NPS (National Pension System)?

Also, read: Post Office Time Deposit Account

Also, read: Equity Linked Saving Scheme (ELSS)

Also, read: Benefits of SIP | Advantages of SIP

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Highlights of Budget 2019-20