Interim Budget is a budget full of reliefs and benefits only. There is no additional tax impact as such on any class of taxpayers.
Let us have a look at the reliefs granted by Interim Budget 2019 presented by CA Piyush Goyal:
1. Relief to the salaried taxpayers by way of increasing the amount of standard deduction from salary income, from existing Rs. 40,000 to Rs. 50,000.
2.. Relief to the individual taxpayers by increasing the maximum amount of tax rebate to Rs 12,500 from existing Rs 2,500. The tax rebate shall now be admissible to taxpayers having total income up to Rs 5,00,000, instead of existing Rs. 3,50,000.
3. Relief to the taxpayer by allowing him an option to claim nil annual value in respect of any 2 houses, declared as self-occupied, instead of one such house as currently provided.
4. Relief to the taxpayers that notional rent in respect of unsold inventory shall not be charged to tax up to 2 years, instead of existing one year, from the end of the financial year in which the certificate of completion is obtained from the competent authority.
5. The monetary limit of deduction on account of interest payable on borrowed capital shall continue to apply to the aggregate of the amounts of deduction in case of more than one self-occupied houses.
6. Relief to the taxpayers having long-term capital gains up to Rs. 2 crore , arising from transfer of a residential house, by affording the assessee a one time opportunity, at his option, to utilise the said amount for the purchase or construction of 2 residential houses in India instead of one residential house as currently provided.
7. By amending section 80-IBA of the Income-tax Act to augment the supply of affordable houses by extending the time limit from 31st March, 2019 to 31st March, 2020 for obtaining approval of the housing project for availing deduction.
8. By amending section 194A of the Income-tax Act to ease the burden of compliance by way of increasing the threshold limit from Rs 10,000/- to Rs 40,000, for deduction of TDS on interest income, other than interest on securities, paid by a banking company, co-operative society or a post office.
9. By amending section 194-I of the Income-tax Act to rationalise the threshold limit from Rs 1,80,000 to Rs. 2,40,000, for deduction of TDS on rental income.