The interim budget delivered on Feb 01, 2019 is applicable from 01 April 2019 in certain cases.
The key items to be kept in mind from today are briefed below:
1. The threshold for Tax Deducted at Source (TDS) on rent increased from INR 1.8 Lakh to 2.4 Lakh.
2. The threshold for TDS on interest income from banks and post office schemes increased from INR 10,000 to 40,000. Note that it is increased for income from banks and post office schemes only, not for other interest incomes.
3. Standard deduction for salaried tax payers increased from INR 40,000 to 50,000.
4. The notional rental income on the second house which is locked up will no longer be added to taxable income.
5. The rebate under section 87A increased from INR 2,500 to 12,500.
6. Individuals and HUFs earning long term capital gain of up to INR 2 crore under section 54 on sale of residential house will get exemption by investing in up to two residential houses instead of one. This is once in a lifetime option.
7. The exemption from notional rent taxation of unsold inventory for builders and developers extended from 1 year to 2 years.
The above points are only the key points to be considered and does not include all the changes made in the interim budget delivered on Feb 01, 2019.