Budget 2019 Income Tax Slab Rates Change Live: What changes were announced for common man in Budget 2019

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New Delhi | Updated: July 5, 2019 8:40:08 pm

Union Budget 2019 Income Tax Slab Changes, Budget for Common Man 2019 Live: While there is no such relief on income tax front, there are a lot of proposals which do have bearing on common man

Budget 2019 Income Tax Slab Changes, Income Tax Slab Rate ChangesBudget Income Tax Live Updates: However, there are possibilities that the Modi government might announce income tax relief for women and senior citizens.

Budget 2019 for Common Man, Income Tax Slab Changes Live Updates: The most awaited aspect for the common man is the Part B of the speech where the income tax slab changes are announced. No changes were announced in the income tax slabs or rates except for the increase in surcharge for those earning between Rs 2 crore to Rs 5 crore, who are not really ordinary people. TDS was imposed on cash withdrawals but that will not hurt the common man as it is only for high value annual withdrawals. The budget speech contains many other provisions that impact the common man, salaried, women, senior citizens in different ways. The quick takeaways for the common man in this budget is the likely impact from the changes in customs duties that can alter the budgets of a common man’s household. There was income tax slab and income tax rate change but the common man got more options for additional tax saving. FM Nirmala Sitharaman proposed in her budget speech that a tax deduction of Rs 1.5 lakh would be extended to those taking loans for purchase of electric vehicles. GST rates on EVs could also head down. The FM wants the common man to participate more in the treasury bills market. Tax deduction for those buying affordable houses was enhanced thereby bringing a big relief to the common man. In what could hurt, customs on gold and precious metals was enhanced to 12.5%.

There were other measures that indirectly but significantly impact the life of the common man beyond taxes. Measures were announced for water management, solid waste management, extending digital literacy etc to the furthest parts of the country. FM Nirmala Sitharaman in her budget speech said that it is her intention to enhance to promote rental housing for the common man. The Narendra Modi government reiterated its promise of providing 24*7 power to the common man in the far-flung villages. The measures also related to providing interoperable transport card. PAN-Aadhaar interoperability was proposed so that those who do not have PAN could use the UIDAI Aadhaar option. Customs duty on books was also increased, so imported ones will be costlier for the common man who likes to read.

In order to give a boost to sale of electric vehicles, Finance Minister Nirmala Sitharaman has also proposed additional exemption of Rs 1.5 lakh on interest paid on auto loan taken for purchase of electric vehicles.

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Live Blog

Budget 2019 Income Tax Slab Rate Changes Live Updates:

Highlights

    17:41 (IST)05 Jul 2019
    Budget 2019 for common man: Modi government cares about your health

    In Budget 2019, Union Finance Minister Nirmala Sitharaman has announced Rs 62,659.12 crore outlay for the health sector in the 2019-2020 financial year. There has been an increase of over 19 per cent in health outlay for this financial year than that of the 2018-2019 fiscal. In 2018-2019 financial year, the outlay for the same sector was Rs 52,800 crore. Notably, the amount is the highest in the last two financial years.

    17:09 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: Modi government for youth

    In Budget 2019, Finance Minister Nirmala Sitharaman has proposed Rs 400 crore to build world class education institutions. The Budget 2019 India also focuses on globally valued skill-sets that include language training. The central government also proposes a new 'National Education Policy'. The Modi government has also proposed that 'Khelo India Scheme' will be expanded.

    16:55 (IST)05 Jul 2019
    Budget 2019 common man: Good news for electric vehicle lovers

    In order to give a boost to sale of electric vehicles, Finance Minister Nirmala Sitharaman has also proposed additional exemption of Rs 1.5 lakh on interest paid on auto loan taken for purchase of electric vehicles.

    16:48 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes Live: Taxpayers must take note

    It has also proposed that those people who don't have PAN Card may use their Aadhaar number, wherever there is a need of PAN. To make filing of Income Tax Returns (ITR) easy, the Finance Minsiter in her maiden Budget speech said that pre-filled ITRs would be made available by integrating information collected from Banks, Stock exchanges, mutual funds etc.

    16:39 (IST)05 Jul 2019
    Budget 2019 for common man: Housing for all

    Giving a boost to the aim of "Housing for All", additional tax deduction of Rs 1.5 lakh over the existing limit of Rs 2 lakh has been proposed interest paid on home loan taken up to March 31, 2020 for buying affordable house for up to Rs 45 lakh.

    16:29 (IST)05 Jul 2019
    Budget 2019 for Income Tax payers: Key takeaways for Common man

    Although tax rebate was hiked in Interim Budget, there were expectations that more relief would be given to income tax payers to enhance savings, consumption and investments.However, the Finance Minister didn't touch the tax slabs and rates, but imposes additional burden in form of higher surcharge of 3 per cent on people with taxable income between Rs 2 crore and Rs 5 crore and additional surcharge of 5 per cent between taxable income over Rs 5 crore.

    16:28 (IST)05 Jul 2019
    Budget 2019 India: Focus was on economy

    With slowing GDP growth, high joblessness, distress in agriculture sector, stagnancy in real estate, liquidity crisis in NBFC sector, it was a tough task for India's first woman Finance Minsiter, Nirmala Sitharaman to prepare a Budget that would adress the problems and take the country on growth path.

    16:21 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: Additional tax for 2 to 5 crore earners

    The FM has proposed to tax the super-rich further. In her speech, she has proposed a higher surcharge for income category falling between Rs 2 crore to Rs 5 crore and for those earning above Rs 5 crore. The effective tax rate for them will increase by 3 per cent and 7 per cent respectively.

    16:20 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: Rs 1.5 lakh income tax deduction on Electric Vehicles loans

    The GST rate on electric vehicles has already been lowered by the Government from 12 per cent to 5 per cent. Also to make electric vehicle affordable to consumers, additional income tax deduction of 1.5 lakh on the interest paid on loans taken to purchase electric vehicles, has been proposed in the budget. This brings in benefit of around 2.5 lakh over the loan period to the taxpayers who take loans to purchase an electric vehicle.

    16:03 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: Pre-filled ITRs

    To make the filing of Income Tax Returns (ITR) easy, the Finance Minister in her maiden Budget speech said that pre-filled ITRs would be made available by integrating information collected from Banks, Stock exchanges, mutual funds, etc. Information regarding these incomes will be collected from the concerned sources such as Banks, Stock exchanges, mutual funds, EPFO, State Registration Departments, etc.

    15:54 (IST)05 Jul 2019
    Budget 2019 for common man, salaried class: Key points

    Interests on loan for house up to 1.5 lakhs, loan period 1 April 2019 to 31 March 2020, stamp duty value of house not to exceed 45 lakhs, no other residential house is owned, This is over and above 2 lakhs, Buy back tax extended to listed cos, For CG employees, 80CCD(2) limit increased to 14% instead of 10 presently. Also tier 2 contributions in NPS allowed u/s 80C, subject to 1.5 lakhs, Sale consideration for the purpose of TDS on sale of immovable property to include payments which are incidental to transfer of property - maintenance & facilities fees, water, electricity, club membership etc, Surcharge rates for high income earners increased - effective tax rate of 2-5 Cr - 39%, 5 + Cr - 42.744%

    15:48 (IST)05 Jul 2019
    Budget 2019 for Income Tax payers, common man

    NPS corpus to the extent of 60% not taxable on closure/opting out. Current limit is 40%, Interchangeable nature of Aadhaar and PAN, PAN to be become inoperative if not linked with Aadhaar, Mandatory filing of return for high value transactions - deposit exceeding 1 crore in cash, expense exceeding 2 lakhs on foreign travel and expense of a lakh or more on electricity, Interests on loan for electric vehicles allowed to an extent of 1.5 lakhs, conditions - loan must be taken in the period April 19 to March 23, no other electric vehicle is owned at the time of acquisition, TDS @ 2 % on cash withdrawals exceeding 1 ACR

    15:43 (IST)05 Jul 2019
    Additional tax benefit on buying affordable housing

    Giving a boost to the aim of "Housing for All", additional tax deduction of Rs 1.5 lakh over the existing limit of Rs 2 lakh has been proposed interest paid on home loan taken up to March 31, 2020, for buying affordable house for up to Rs 45 lakh. This would serve a big incentive to buy an affordable house for up to Rs 45 lakh in the form of tax savings as a person in 30 per cent tax bracket would able to save additional tax of Rs 45,000 over buying an expensive house, while those in 20 per cent tax bracket Rs 30,000 and those in 10 per cent tax bracket Rs 15,000.

    15:42 (IST)05 Jul 2019
    CPSE ETF investors to get similar tax benefits as ELSS investors

    The FM has proposed to extend the benefit of section 80C for investments made in Central Public Sector Enterprise (CPSE) exchange-traded fund (ETF). The tax saving will be similar to the tax benefit available in the equity-linked savings scheme (ELSS) is currently available to mutual funds.

    15:18 (IST)05 Jul 2019
    Budget for common man: Things that will turn out to be Expensive

    Cash withdrawal over Rs. 1 crore/year, Petrol and Diesel - Additional cess of Rs 1 per liter imposed, Metal fittings - increased from 10% to 15%4.Marble Slabs - increased from 20% to 40%, Imported gold and precious metals - Customs duty increased on gold and precious metals from the existing 10% to 12.5%, Imported paper and paper products (including printed books) - Introduction of 5% customs duty on imported books, Imported loud-speakers, plugs, sockets, switches, Imported Vinyl flooring, tiles, the indoor and outdoor unit of split AC, Imported cashew kernels, Imported auto parts, Cigarettes, CCTV cameras/ IP cameras, Polyvinyl chloride pipe (PVC)

    15:12 (IST)05 Jul 2019
    Budget 2019 for common man: Things that will turn out to be Cheaper

    Affordable houses: deduction up to Rs. 1.5 lakh for interest paid on loan taken for the purchase of residential house up to Rs. 45 lakh, Electric vehicles - Lower GST rate on electric vehicles from 12% to 5%, Income Tax deduction of Rs 1.5 lakh on interest paid on loans taken for the purchase of electric vehicles, Imported wool fiber, wool tops - Decreased from 5% to 2.5%, Imported defense equipment, Imported parts of electric vehicles - Customs duty has been exempted, Imported raw material for the manufacture of artificial kidneys

    15:07 (IST)05 Jul 2019
    Retail traders, shopkeepers to benefit from the pension scheme

    The Government of India has decided to extend the pension benefit to about three crore retail traders & small shopkeepers whose annual turnover is less than 1.5 crore under a new Scheme namely Pradhan Mantri Karam Yogi Maandhan Scheme. Enrolment into the Scheme will be kept simple requiring only Aadhaar and a bank account and rest will be on self-declaration.

    14:59 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: Rental housing policy to be in place

    The FM has proposed that several reform measures would be taken up to promote rental housing. Current Rental Laws are archaic as they do not address the relationship between the Lessor and the Lessee realistically and fairly. A Model Tenancy Law will also be finalized and circulated to the States

    14:51 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes Live: Aadhaar PAN interchangeability

    The FM has proposed to make PAN and Aadhaar interchangeable, allowing those who do not have PAN to file income tax returns. if the proposals go through, one can use the Aadhaar to file the ITR. The move will allow income tax filers to substitute PAN with Aadhaar or vice versa in the filing of the ITR. Also, Aadhaar cards will now be given to NRIs with Indian passports.

    14:44 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: ATM-like one nation card for travel

    Payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards. This will allow people to pay multiple kinds of transport charges, including metro services, and toll tax, across the country. The inter-operable transport card will run on the RuPay card. It will also allow the holders to pay for bus travel, toll taxes, parking charges, retail shopping and even withdraw money.

    14:41 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes Live: TDS of 2 per cent on withdrawal

    To promote digital payments further, business making payments in cash will be levied TDS of 2 per cent on cash withdrawal, exceeding 1 crore in a year from a bank account. Alternatively, low-cost digital modes of payment such as BHIM UPI, UPI-QR Code, Aadhaar Pay, certain Debit cards, NEFT, RTGS, etc. can be used to promote less cash economy and to avoid charges. Hence, business establishments with annual turnover more than 50 crores should use such low-cost digital modes of payment to their customers and no additional charges or Merchant Discount Rate (MDR) will be imposed either on customers or on merchants.

    13:45 (IST)05 Jul 2019
    Budget 2019 Income Tax calculator

    Now you can calculate how much income tax you need to pay after Budget 2019. READ HERE

    13:39 (IST)05 Jul 2019
    Budget 2019 income tax slab rate

    For income tax purpose, different levels of income are earmarked to apply different tax rates. These levels of incomes are called income tax slabs and the predetermined rates, which are applied on the slabs are called income tax slab rates. Currently, there are four tax slabs and four different income tax slabs rates and no change has been made in the slab rates in the Budget 2019.On taxable income up to Rs 2.5 lakh, zero per cent tax rate is appliedOn taxable income between Rs 2.5 lakh and Rs 5 lakh, 5 per cent tax rate is appliedOn taxable income between Rs 5 lakh and Rs 10 lakh, 20 per cent tax rate is appliedOn taxable income over Rs 10 lakh, 30 per cent tax rate is applied

    13:35 (IST)05 Jul 2019
    Budget 2019 income tax rates

    Income tax is assessed on the basis of earnings of a person and is paid directly by the assessee. As higher tax rate is applied on higher level of income and lower rate on lower income level, a person having higher income pays more tax than a person having lower income. So, different persons are taxed differently on the basis of their ability to pay tax. Currently zero per cent tax is charged on taxable income up to Rs 2.5 lakh, 5 per cent tax on taxable income between Rs 2.5 lakh and Rs 5 lakh, 20 per cent tax is charged on taxable income between Rs 5 lakh and Rs 10 lakh and 30 per cent tax is charged on taxable income over Rs 10 lakh. No change in these tax rates have been proposed in the Budget 2019.

    13:34 (IST)05 Jul 2019
    Budget 2019 income tax rebate

    Income tax is charged on the basis of the ability to pay tax. That is higher tax rate is applied on higher income level or higher income tax slab and lower income levels are taxed at lower rate. On that basis up to certain income level persons having higher or lower income are taxed at same rate. It is only when a person moves to higher tax slab, he/she pays tax at a higher level on the additional income. So, to provide more tax relief to persons at lower income level, certain amount of tax rebate is given up to certain income level instead of increasing the tax slab. As a result, the benefit of tax rebate may be availed by a person having income up to only that prescribed limit, while persons having higher income get no benefits of tax rebate. Tax rebate of Rs 12,500 on taxable income up to Rs 5 lakh has been proposed in the Interim Budget.

    13:34 (IST)05 Jul 2019
    Budget 2019 income tax slab

    Income tax is a direct tax and is applied at different rates on different levels of income. That is lower the income level, lower will be the tax rate and vice versa. So, to apply different rates, different income levels are earmarked for income tax purpose, which are called income tax slabs. Income tax is charged at predetermined rates on the income tax slabs to calculate total tax payable. No tax is charged (i.e. zero per cent tax rate) on lowest slab and it is called exemption limit. Currently there are four income tax slabs in India – income below Rs 2.5 lakh, income between Rs 2.5 lakh and Rs 5 lakh, income between Rs 5 lakh and Rs 10 lakh and income over Rs 10 lakh. There is no change proposed in Budget 2019.

    13:12 (IST)05 Jul 2019
    Income Tax LIVE: Surcharge increase

    Finance Minister Nirmala Sitharaman said that the surcharge on taxable income of Rs 2 crore and above will be enhanced

    13:08 (IST)05 Jul 2019
    Income Tax Live: Increase in TDS

    Finance Minister Nirmala Sitharaman proposed to levy TDS of 2% on the cash withdrawal over Rs 1 crore a year from bank accounts.

    13:00 (IST)05 Jul 2019
    INCOME TAX LIVE: Pre-filed income tax returns

    Finance Minister Nirmala Sitharaman announced that the government is working on pre-filled income tax returns.

    12:57 (IST)05 Jul 2019
    Income Tax Live: Affordable home loans

    The extended benefit for home loans will be available for home loans till March 2020., says Finance Minister Nirmala Sitharaman

    12:56 (IST)05 Jul 2019
    INCOME TAX LIVE: PAN CARD and Aadhaar Card to be interchangeable

    Finance Minister Nirmala Sitharaman said that in order to reward honest tax payers, the process of filing income tax returns will be simplified. For this purpose, Aadhaar CARD and PAN Card will be interchangeable for the process of filing income tax returns.

    12:54 (IST)05 Jul 2019
    Income Tax LIVE: Benefits for affordable housing

    Finance Minister Nirmala Sithraman extended the benefit of Rs 1.5 lakh for home loans, making it Rs 3.5 lakh from the existing Rs 2 lakh, This has been done to encourage affordable housing for meeting PM Modi's vision of housing for all by 2022. 

    12:50 (IST)05 Jul 2019
    Income Tax LIVE: Get benefit for purchasing electric vehicle

    Finance Minister Nirmala Sitharaman announces Rs 1.5 lakh tax subsidy to tax payers taking loans to buy electric vehicles

    12:40 (IST)05 Jul 2019
    Income Tax LIVE: FM thanks honest taxpayers

    According to Finance Minister Nirmala Sitharaman the Direct Tax revenue has significantly increased in the last few years. She announced that there has been a 78% increase in Direct Tax revenue.

    12:36 (IST)05 Jul 2019
    Income Tax LIVE: FM thanks honest taxpayers

    Finance Minister Nirmala Sitharaman starts Part B of her Union Budget 2019 speech on taxes by thanking honest taxpayers for coming forward to pay taxes.

    12:35 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: FM thanks taxpayers

    Finance Minister Nirmala Sitharaman has thanked 'honest income taxpayers' of India for paying taxes.

    11:39 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes: On Home loans

    The principal repaid on a home loan is allowed as a tax deduction under Section 80C. With Section 80C limits expected to rise, home loan borrowers can claim a higher deduction on the home loan principle repayments. Moreover, the limit of tax deduction applicable on home loan interest paid under Section 24 is also expected to increase. Currently, the limit is up to Rs 2 lakh, which might be increased to Rs 2.5 lakh or Rs 3 lakh as per the expectations of the common man and small taxpayers.

    11:26 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes Live Updates: For taxpayers

    Section 80C allows various types of income tax deductions through investments and tax deductible expenses. For the last many years people have expected the Finance Ministry to make changes in this section, but nothing has happened. Now with the new Finance Minister in place, people are expecting the following changes in this popular section. The overall deduction limit of Rs 1.5 lakh may be increased to Rs 2 lakh

    11:25 (IST)05 Jul 2019
    Budget 2019 Income Tax Slab Rate Changes Live Updates:

    The income tax rates of 5 per cent, 20 per cent and 30 per cent for the financial year 2019-20 may be considered to be on the higher side if cess and surcharge are also taken into account. Tax rate for the individual with an income of around 50 lakh is 34.32 per cent and tax rate for the individual with an income of around Rs 1 crore is 35.88 per cent. It remains to be seen if the Union Budget 2019 India brings about any revision in the effective marginal tax rates for the Indian taxpayers.Currently, the Health and Education Cess of 4 per cent is levied on the income tax that makes the effective tax rates to become 5.2 per cent, 20.8 per cent and 31.2 per cent for the 5 per cent, 20 per cent and 30 per cent tax rates respectively fort hose earning below Rs 50 lakh. READ MORE

    10:56 (IST)05 Jul 2019
    Budget 2019 Income Tax LIVE: Better clarity in LTCG tax?

    With the Union Budget India 2019 round the corner, the mutual fund industry is waiting for better clarity to emerge as far as the LTCG tax is concerned. Currently, while the equity MF units are subject to LTCG tax, their counterpart Ulip remains tax-exempt in the hands of the policyholder. Will Budget 2019-20 be able to make the MF industry regain its lost level playing field? Read More

    Any announcement regarding income tax in Union Budget is keenly followed by the middle-class. The salaried class is curious about what will be the impact of Budget 2019 on their income tax as well as the standard deduction. Budget 2019 may well decide how much income tax salaried class needs to pay. Any changes in the Income Tax slab in Budget 2019 will decide the income tax returns she or he needs to pay in a financial year.