Income tax-Points to remember in Financial year 2019-20

Few important Changes applicable from 01.04.2019 as per interim budget

1 Tax Rebate increased

Due to rebate allowed for individual with Taxable  income up to Rs 5 lakhs,no tax is payable.

2 .Standared deduction increased to Rs 50,000

The standared deduction for salaried individuals and pensioners is hiked to Rs 50,000 instead of Rs 40,000 in FY 2018-19

3. No notional income for second self occupied house.Earlier notional income has to be computed for the second self occupied house,which is now exempted.

4.TDS on property rent threshold limit to Rs 240,000

The TDS threshold limit increased from Rs1.80 lakhs to Rs 2.40 lakhs for small tax payers renting property to non individuals.

5.Capital gain can be used to buy two houses
The capital gain can be used to buy two houses now, which was one house earlier in case of individual/HUF.This is applicable once in life time if gain does not exceed Rs 2 crore.

6.TDS on Bank interest threshold limit to Rs 40,000

The liability of banks / cooperative societies doing banking transactions will now have to deduct TDS only if the interest exceeds Rs. 40000 effective from 01-04-2019, the limit earlier was Rs. 10000.

The non banking financial institutions such as KSFE will have to deduct TDS when the interest exceeds Rs. 5000 in a year as in the earlier years.