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Video: Interim Budget 2019 Analysis (Personal Tax)

| Updated on February 11, 2019 Published on February 05, 2019

A detailed analysis of the interim budget 2019 by Aarati Krishnan, where she talks about personal tax, income-tax slab, Income Tax Act, income-tax e-filing, tax benefits to home buyers and the new income-tax exemption limit 2019

In this video, Aarati Krishnan, Editorial Consultant of The Hindu BusinessLine, offers a detailed analysis on the Interim Budget 2019 presented by Union Finance Minister Piyush Goyal.

She explains about the tax breaks individuals get from the new tax proposals.

This interim budget 2019 has given a lot of tax breaks to the middle class. Some of the key tax proposals are:

  • There have been hardly any changes in the tax slabs over the past five years. Currently, we pay no tax for income up to Rs 2.5 lakh. A tax rate of 5% is applied for earnings from Rs 2.5 – 5 lakh. In this budget, the finance minister has announced that those earning up to Rs 5 lakh will not have to pay tax and will be allowed full tax rebate under Section 87A of Income-Tax Act
  • This can result in savings up to Rs 13,000/year for people who have earnings up to Rs 4-5 lakh
  • Standard deduction for salaried employees has gone up from Rs 40,000 to Rs 50,000
  • No TDS (tax deduction at source) on interest payments of up to Rs 40,000/year. People who invest in bank or post office deposit get more benefits from this proposal
  • The budget also includes tax benefits to home buyers. From now on, we can buy two homes with the proceeds of selling one home. Up to Rs 2 crore of capital gains is allowed to be exempted from capital gains tax and this is allowed once in a lifetime
  • Another significant highlight of this interim budget 2019 is simplified tax procedures, where the income tax filings will be processed within 24 hours and it can be done entirely online (income tax e-filing)  which saves you time

To conclude, this budget has offered more to the lower and middle income tax payers.

Published on February 05, 2019