Going forward, there have been made a slew of changes in the Budget 2019, which will come into effect from the new financial year. And so while engaging for the FY beginning April, you definitely need to consider these changes.
Tax rebate up to Rs. 5 lakhs income; zero tax liability up to the given slab: In the interim:
Individuals with taxable income up to Rs. 5 lakhs will be allowed full rebate in the new financial year and hence there will be no tax implication.
Under section 87 A, the rebate has been increased to Rs. 12,500 from FY'20. And in case the income is above the exemption limit, an individual is required to file the income tax return.
Also there are provided different deductions using which individuals can lower their tax liability and also at the same time avail tax rebate benefit.
TDS threshold limit hiked to Rs. 40,000:
As against TDS deduction on deposits which earlier arose if interest in a given FY on deposits is 10,000, for that now the threshold has been increased to Rs. 40,000. Through the move, those with taxable income below the exemption limit will have to engage in less of paper work as earlier they were required to submit form 15G or Form 15H as the case may be to avoid TDS.
But needless to say, there shall be still tax implication on the interest income from such investments and it shall be included in the income from other sources head.
Also the tax-saving deduction under Section 80TTA can be claimed for the interest income earned from the savings account either held with a bank or post office.
Limit of standard deduction increased to Rs. 50,000:
After being shelved off, Union Budget 2018 re-introduced in lieu of conveyance and medical reimbursements. The deduction is available to salaried class as well as pensioners and can be claimed at the time of filing ITR.
No income tax on notional rent from the second house property:
with the latest proposal in the Interim Budget 2019, individuals will not have to shell-out any tax on up to two self-occupied houses. The move will encourage prospective real estate buyers who were until now reluctant to buy a second house as an investment due to the taxation of notional rent on second house property. Also, the provision comes as a relief to those who have a house in one city, but due to work life maintain another house in other city.
To make the concept of notional rent, here is given the example, Suppose if an individual owns two or more houses then under the Income Tax Act one of the houses is deemed as tax-free while the other shall be treated as taxable on the basis of the notional rent for that. For the computation of notional rent on second self-occupied house, expected rent (ER) and gross annual value (GAV) of the property are taken into account.
Physical shares not allowed to be transferred from April 1, 2019:
After the extension in the previous deadline from December 5 to transfer physical shares, these listed firm shares unless dematerialized will be deemed illiquid. This implies that after the extended deadline of March 31, you will not be able to transfer or sell your held physical shares of listed companies.
So, being hold of simply physical shares do not mean any value for you as a shareholder unless you get them transferred to demat form.
GST changes levied on housing sector:
GST changes levied on housing sector: From April 1, GST rates on affordable housing sector will come down to 1% whereas for categories it will be 5%. Currently, for the two categories GST of 8% and 12% is levied.
Also, in respect of EPF, a separate application will not have to be given for transfer of EPF account when changing jobs. Further, automatic system of EPF transfer would also come into place from April 1, 2019.