There were not so many changes in income tax provision as we were expecting in budget 2019. Finance Minister Nirmala Sitaraman kept all the tax slab remain unchanged in her maiden budget but she put a new income tax proposal that could impact many taxpayers.
- The government today announced that Adhar card and Pan Car both are interchangeable. That means if you don’t have a PAN card you can file the income tax return through your Adhar card as well.
- Government giving additionally 1.5 lakh on home loan for affordable houses below to the 45 lakhs. This benefit will be available till March 2020. Cumulatively, the interest paid on home loan deduction will go up to ₹3.5 lakh, from the current ₹lakh for self-occupied house property.
- The government also proposed another 1.5 lakhs income tax deduction on interest paid on loans for buying of an electric vehicle.
- The government also announced 1.5lakhs tax deduction on ELSS mutual funds or investment funds saving schemes under the section 80C income tax act.
- The government also increased income tax surcharge for (high net worth individuals). A person who is earning more than 2 crores or we can say come out in the range between 2-5 crores will have to pay 3% more, the surcharge rate is being increased from 15% to 25%. And the person whose earning more the 5% will have to pay 7% more, the rate is increased from 25% to 35%.
This budget set a clear roadmap for the tax administration to the next 5 years. The purpose of this budget for tax administration is to make the tax simplifying, giving tax benefits on buying a home to the middle-class people and encourage the people to buy electric vehicles.
This budget sets a clear indication that the government is more concern about middle-class. By charging more tax from higher income groups and using it for the middle-class benefits.