The interim budget 2019 finance bill has been assented to by the President on February 21 thereby making it an Act. This means that the proposals in the Finance bill 2019 including the tax changes now become law. The interim budget had proposed to increase standard deduction for salaried employees to Rs 50,000 for FY19-20 from Rs 40,000 in FY18-19 and provide full rebate of tax payable to all those earning upto Rs 5 lakh taxable income starting FY19-20.
Other important new laws, proposals include: Proposed- Long-term capital gains on sale of residential house property will be exempt from income-tax if:
- Capital gains is invested in two residential house properties in India (“new houses”)
- The amount of capital gain is limited to Rs 20,000,00
- The benefit is available only once in a life time of the tax payer.
- Proposed– Tax deducted at source (TDS) threshold for interest income to be increased from Rs 10,000 to Rs 40,000 per financial year.
- Proposed– TDS threshold for rental income to be increased from Rs 240,000 per financial year.