Tax Highlights of Union Budget 2019-20

Here is the direct tax and indirect tax highlights of union budget 2019-20.

  • Standard deduction raised to Rs.50,000 from Rs.40,000 now.
  • Proposing to exempt levy of IT on notional rent on second occupied houses for middle-class families who stay at two places on account of their jobs.
  • TDS threshold on bank deposits raised from Rs 10,000 to Rs 40,000
  • While there is no cheer for the middle class in income tax slabs, the government has made filing returns easier, said Goyal, and claimed that it will be processed within 24 hours. Within nearly two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by officials, he promises.
  • GST is the undoubtedly the biggest taxation reform implemented since Independence; through tax consolidation, India became one common market; inter-state movements became faster through e-way bills, improving Ease of Doing Business.
  • GST increased in higher collection (of taxes). Interstate movement of goods has become hassle free, faster. GST has been continuously reduced, resulting in relief of Rs 80,000 crore to consumers.
  • Items of daily use for poor and middle class are between 0-5 per cent Goods and Services Tax. Burden should be less on home buyers, so recommendations will be acted upon by GST Council.
  • Businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns. Govt abolished import duties on 36 capital goods.
  • Monthly tax collection had increased to Rs 97,100 crore as opposed to about Rs 87,000 crore last year. 80 per cent growth in the tax base.
  • 99.54% returns have been accepted without any scrutiny. The Income Tax department was made online, all returns will be processed within 24 hours and returns will be provided simultaneously.
  • In next 2 years, all IT returns taken for scrutiny also will be done from an anonymous computerised system.
  • Special incentives were given to small businesses. Impactful steps taken in reducing tax, bringing benefits for middle class citizens.
  • Direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore; Tax base up from to 6.85 crore.

Income of Rs.7.75 lakh – Zero Tax After Budget 2019-20

Union Budget India 2019-20 – Download PDF – Finance Bill, 2019 – Complete PDFs

Categories Budget

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