Income Tax & GST changes – Budget highlights 2019

Income Tax

1. No tax till Rs 5 lakh income for tax payers Individuals with gross income up to 6.5 lakh rupees if they make investments in provident funds and prescribed equities.
2. Standard deduction increased to Rs 50,000 from Rs 40,000 for salaried class.
3. TDS threshold for home rent increased from Rs 1.8 lakh to 2.4 lakh.
4. TDS threshold on Interest income in post offices raised to Rs 40,000 from Rs 10,000 currently. Banks made tax free.
5. Capital gains tax exemptions under Section 54 to be available to Rs 2 crore. Capital gains exemption to be available on 2 house properties.
6. Direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore.

GST

1. Businesses with less than Rs 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns.
2. Group of Ministers to suggest ways to reduce GST for house buyers.