Welcome steps in Income Tax law

Welcome steps in Income Tax law;

1.    Now for Total Income (after deduction of 80 C like life insurance, tution fee etc)of up to Rs 5 Lacs , no income tax, but income tax return will have to be filed.

2.    Salaried person making investment of Rs 1.50 lacs does not require to pay tax for salary up to Rs. 7 lacs.

3.    Non Salaried person making investment of Rs 1.50 lacs does not require to pay tax for income up to Rs. 6.50 lacs.

4.    For other than Salaried Tax Payers, tax shall be:

·         The tax rebate shall now be admissible to taxpayers having total income up to five hundred thousand rupees, instead of existing three hundred fifty thousand rupees.

·         Taxable Income means Gross Total Income minus deductions like Insurance, Tution Fee, tax saving deposit

o    Example

§  Business Income                                 6.50 Lacs

§  Life Insurance for Tax Saving               1.50 lacs

§  Balance Income                                   5.00 Lacs

§  Tax to pay                                            Nil

§  Income Tax Return to file                    YES

5.    For Salaried Tax Payers, tax shall be:

§  Salary                                                   7.00 Lacs

§  Standard Deduction                             0.50 Lacs (fifty thousand)

§  Balance Income                                   6.50 Lacs

§  Life Insurance for Tax Saving               1.50 lacs

§  Balance Income                                   5.00 Lacs

§  Tax to pay                                            Nil

§  Income Tax Return to file                    YES

6.    The above tax benefit will be applicable from financial year starting from 01.04.2019.

7.    Benefit of deduction of interest on house loan up to Rs 2 lacsper person shall be in addition,

a.     Salaried person making investment of Rs 1.50 lacsand paying house loan interest up to Rs 2 lacsdoes not require to pay tax for salary up to Rs. 9lacs.

b.    Other than Salaried person making investment of Rs 1.50 lacsand paying house loan interest up to Rs 2 lacsdoes not require to pay tax for salary up to Rs. 8.5lacs.

8.    No deduction of tax on interest of deposits with banks up to interest income of Rs 40000/- and no deduction of tax if the amount of rent payable is up to Rs 240000/-. This is beneficial to the persons who have taxable income less than Rs 250000/-, but have to file the income tax return for getting refund of tax deducted by tenants and banks.

Benefit for Farmers:

9.     “PradhanMantriKIsanSammanNidhi (PM-KISAN)”.

a.     Farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of `6,000 per year to around 12 crore farmers, will cost the Government Rs 75000 crores around

b.    This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of `  2,000 each.

10.  'PradhanMantriShram-Yogi Maandhan':

a.     This is for the 10 crore workers in unorganised sector workers, those who are not covered under ESI / PF etc,  with monthly income upto ` 15,000.

b.    This pension yojana shall provide them an assured monthly pension of ` 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age.

                                          i.    Example worker paying  Rs 100 per month till the age of 60 years will get pension of Rs 3000 per month if starts paying at the age of 29

                                         ii.    Example worker paying Rs55 per month till the age of 60 years will get pension of Rs 3000 per month if starts paying at the age of 18