Here are a few ways individuals are impacted by the tax proposals of Union Budget 2019-20.
No changes in personal income tax rate
There are no changes in the personal income tax rate. However, the super rich will need to pay tax. There will be a 3% surcharge on incomes of Rs. 2 crores per year, and 7% surcharge on income above Rs. 5 crores.
Additional benefits on affordable housing home loans
The budget 2019-20 has offered an additional Rs 1.50 lakh deduction for interest on home loans taken up to 31 March 2020. This is in addition to the current tax benefits of Rs 2.5 lakhs per year. However, one would need to study the more finer details.
2% TDS on cash withdrawals of Rs 1 crores a year
There would be a TDS of Rs 1 crores that would be applicable on cash withdrawal of Rs 1 crores a year.
Tax benefits on loan for electrical vehicles
There would be a tax benefit on loans taken for electrical vehicles, where interest to the tune of Rs 1.5 lakhs has been paid during the financial year. This would be a good move to enable and push clean sources of fuel.
The Modi government intends to push women entrepreneurship through its government schemes. Sitharaman proposed to extend interest subvention for women self-help groups (SHG) across India. One woman in every SHG will be eligible for Rs 1 lakh under MUDRA scheme, she said.