Finance Bill 2019 becomes Act, President assents Finance Act 2019:
President Shri Ram Nath Kovind on February 21 gave assent to finance bill 2019 thereby making it an Finance Act 2019. The proposals in the Finance bill 2019 including the tax changes now become law.
The interim budget had proposed that Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate for FY 2019-20 and increased standard deduction for salaried employees to Rs 50,000 for FY19-20 from Rs 40,000 in FY18-19.
Other important new laws, proposals include:
Proposed- Long-term capital gains on sale of residential house property will be exempt if Capital gains is invested in two residential house properties in India (new houses) The amount of capital gain is limited to Rs 2 crore. 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 Threshold Limit of TDS on rental income raised from 1.8 lakh to 2.4 lakh rupees.
Proposed Benefit u/s 80IB has increased to one more year i.e. 2020