There are modification to taxation laws with effect from April 1, 2019. Some are related to Income tax whereas others are related to Goods and Services Tax.
As announced in the interim Budget, there is no change in the slab rate of income-tax, but only in the rebate system, and the new norms kick in from the financial year 2019-20 beginning April 1, 2019. The rebate is available for those with a taxable income between ₹2.5 lakh and ₹5 lakh. It is required to file ITR in order to claim rebate.
There is change in Standard Deduction and TDS threshold for interest and rent income.
For salaried persons, the Standard Deduction is being raised to ₹50,000 from ₹40,000.
For interest income on deposits, the TDS threshold will be ₹40,000 against ₹10,000. Similarly, the TDS threshold for deduction of tax on rent will be ₹2.40 lakh from ₹1.80 lakh now.
Also, the new norm for exempting income tax on notional rent on a second self-occupied house comes into effect from Monday.
The Finance Ministry has already notified norms for levying lower GST on under-construction flats. The new rates are 1 per cent for affordable houses and 5 per cent for others. This reduced rate will also be applicable to projects that have allocated up to 15 per cent of the carpet area for commercial purposes (shops, offices, etc). There will be no input tax credit.
