The Interim Finance Minister detailed the tax reforms on the direct taxes and GST front, and the benefits of the same to the citizens of India. He highlighted that tax collections as well as the tax base have shown significant increase and India has made considerable progress towards achieving a moderate taxation-high compliance regime. He acknowledged the valuable contribution of tax payers to nation building and in particular, for providing a better life to the poor and marginalized sections of society. In order to pass on the benefit of tax reforms to such tax payers without any delay, tax proposals have been introduced in this interim budget itself favouring small taxpayers especially middle class salary earners, pensioners, and senior citizens.
The beneficial tax proposals include complete tax rebate for individual taxpayers having total income up to RS. 5 lakhs, increase in standard deduction from Rs.40,000 to Rs. 50,000, extension of benefit of Nil annual value for self-occupation to two residential houses and increase in TDS threshold on interest earned on bank/post office deposits from Rs.10,000 to Rs.40,000 and on rent from Rs.1,80,000 to Rs.2,40,000. Further, investment in two residential houses would be permissible for claiming capital gains exemption under section 54.
Overall, the budget proposals on the personal taxation front would put more money in the pockets of small taxpayers and increase their purchasing power. In short, it is a progressive budget from a Chartered Accountant FM.
Source- ICAI PRESS RELEASE Dated 01.02.2019