“Additional deductions such as interest on home loan up to Rs.2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens”

Income upto Rs 5 Lakh to get full tax rebate; higher standard deduction proposed

Relief of over Rs 23,000 crore to estimated 3 Crore small and middle class tax-payers TDS threshhold on interests on small savings raised Boost to housing and real estate sector FM announces a slew of tax reliefs for middle class and small tax payers

Individual taxpayers having taxable annual income up to Rs.5 lakhs will get full tax rebate and therefore will not be required to pay any income tax. While presenting the Interim Budget 2019-20 in Parliament today the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal said “Because of major tax reforms undertaken by us during last four and half years, both tax collections as well as tax base have shown significant increase, achieving a moderate taxation- high compliance regime. It is, therefore, just and fair that some benefits from the tax reforms must also be passed on to the middle class taxpayers”

As a result, the Finance Minister added that even persons having gross income up to Rs. 6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc. In fact, with additional deductions such as interest on home loan up to Rs.2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens etc, persons having even higher income will not have to pay any tax. This will provide tax benefit of Rs.18,500 crore to an estimated 3 crore middle class taxpayers comprising self employed, small business, small traders, salary earners, pensioners and senior citizens.

STANDARD DEDUCTIONS RAISED
For salaried persons, Standard Deduction is being raised from the current Rs.40,000 to Rs.50,000. “This will provide additional tax benefit of Rs.4,700 crore to more than 3 crore salary earners and pensioners”, the Finance Minister informed.

TDS THRESHHOLD INCREASED
Tax Deduction at Source (TDS) threshold on interest earned on bank/post office deposits has been proposed to be raised from Rs.10,000 to Rs.40,000. Shri Goyal said, “This will benefit small depositors and non-working spouses”. Further, the TDS threshold for deduction of tax on rent has also been proposed to be increased from Rs.1,80,000 to Rs.2,40,000 for providing relief to small taxpayers.

MORE RELIEF TO RESIDENTIAL HOUSES
It has been proposed to exempt the levy of income tax on notional rent on a second self-occupied house. Currently, income tax on notional rent is payable if one has more than one self-occupied house. Shri Goyal announced the relief considering the difficulty of the middle class having to maintain families at two locations on account of their job, children’s education, care of parents etc.

Further, the Finance Minister proposed to increase the benefit of rollover of capital gains under Section 54 of the Income Tax Act from investment in one residential house to two residential houses for a taxpayer having capital gains up to Rs. 2 crore. This benefit can be availed once in a life time. For making more homes available under affordable housing, the benefits under Section 80-IBA of the Income Tax Act is being extended for one more year, i.e., to the housing projects approved till 31st March, 2020. Also, for giving impetus to the real estate sector, the Finance Minister proposed to extend the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years, from the end of the year in which the project is completed.

Source: PIBSimilar Posts:

• Relief to Salaried Taxpayers – Standard Deduction of Rs 40,000 Allowed
• House Rent Paid : 80GG has also been raised to 60,000 from 24,000
• Certain Tax Reliefs announced for small tax payers and others
• Exemption of Interest Income on deposits increased to Rs 50,000 to Senior Citizens
• Budget 2017 : Income tax reduced by 5% for Income upto Rs. 5 lakh

Ministry of Personnel, Public Grievances & Pensions

Delegation of DoPT employees calls on MoS (PP) Dr Jitendra Singh

Employees thank Prime Minister for allowing standard deduction of Rs 40,000

A delegation of officials of Department of Personnel and Training (DoPT), called on the Union Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh here today. The officials thanked the Government led by Prime Minister Shri Narendra Modi for incorporating their issues in the Union Budget presented by Finance Minister Shri Arun Jaitley yesterday.

The delegation was led by the DoPT Secretary Shri Ajay Mittal. The members thanked the Government for allowing them a Standard Deduction of Rs 40,000 p.a. for salaried individuals on income tax in lieu of the existing transport allowance and reimbursement of medical expenses. They also thanked the Government for taking various other welfare measures for the employees in the last three years.

Dr Jitendra Singh said that this is for the first time that a Government has acknowledged the contribution of the salaried class which is contributing the bulk of income tax collections throughout the country and accordingly, certain exemptions such as standard deduction of Rs 40,000 has been announced specifically for this class.

Shri Singh said that the Finance Minister also deserves to be lauded for having addressed the other issues of various sections and regions of the country. He also expressed happiness at the announcement of Rs 10,000 crore as “Fishery Fund” which will also benefit the people in Northeast. Bamboo Mission has a special significance for Northeast and the announcement made by the Finance Minister is a vindication of the Union Government’s continued commitment to the development of the remote regions. He said that the senior citizens faced the issues of late-age illness, lack of caretakers for help and financial constraint. He said that this has been taken care of by exemption of the interest on bank account from income tax up to Rs.50,000, enhancement of the health insurance amount up to Rs.50,000 and hike in medical expenditure. The budget is common man friendly and addresses issues of all sections, he added.

Source: PIB

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“Exemption of Rs. 5 lakhs per annum to pension income”

Shiv Pratap Shukla

D.O.No.370150/9/2017-TPL
MINISTER OF STATE FOR FINANCE
GOVERNMENT OF INDIA
NEW DELHI – 110001
14th November, 2017

Dear Dr. Tharoor ji,

Kindly refer to your D.O.letter No. DO/ST/09/2017/986 dated 26.09.2017 requesting for providing exemption of Rs. 5 lakhs per annum to pension income.

I have got the matter examined. Currently, the basic exemption limit for individual tax payer is Rs. 2,50,000. However, considering the specific needs of the senior citizens, the basic exemption limit for a senior citizen above 60 years is fixed at Rs.3,00,000 and for very senior citizen i.e. above 80 years, the same is fixed at Rs. 5,00,000.
Therefore a pensioner who is a senior citizen is not required to pay any income-tax if his total income, including pension, does not exceed Rs. 3 lakhs. Similarly, a pensioner who is very senior citizen is not required to pay tax if his total income, including pension, does not exceed Rs. 5,00,000. However, the suggestion that pension up to Rs. 5 lakhs per annum should be exempt in all cases would require amendment to the existing provisions of the Income-tax Act, 1961.

Accordingly, the proposal would be examined during the exercise for the ensuing Union Budget, 2018 and the outcome would be reflected in the Finance Bill, 2018.

With regards,
Yours sincerely,
(Shiv Pratap Shukla)

Dr. Shashi Tharoor,
Member of Parliament (LS)
116, Block B, Parliament House Annexe Extension,
New Delhi – 110001

Source: NFIRSimilar Posts:

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• Income Tax on Gratuity – exemption enhanced Up to 20 lakhs
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In an initiative to reduce taxpayer grievances and enhance the taxpayer satisfaction, the Central Board of Direct Taxes had issued instructions to Central Processing Center (CPC), Bengaluru and the field officers in December, 2015 to issue refunds of amounts less than Rs.50,000/- expeditiously.

As a result of the special drive to issue smaller refunds, 18,28,627 refunds below Rs.50,000/- involving a sum of Rs.1,793 crore have been issued between 1st December, 2015 and 10th January, 2016. These refunds relate to Assessment years 2013-14 to 2015-16.

In order to further expedite the process of issue of small refunds, CBDT has also directed CPC-Bengaluru and the field units that refunds up to Rs.5,000/-, and refunds in cases where outstanding arrears are up to Rs.5,000/- may be issued without any adjustment of outstanding arrears. Office Memorandum F. No. 312/109/2015-OT dated 14th January 2016, conveying these directions of CBDT is available on the website of the Department www.incometaxindia.gov.in.

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“Special counters have been opened at Chennai’s Income Tax Office in order to handle the last minute rush. These counters will function for the next five days starting August 27”.

Special counters to file Income Tax returns already opened in New Delhi being open including Saturdays and Sundays. Now, special counters have been opened at the Income tax office in Chennai Nungambakkam to enable the general public to file their tax returns.

These counters will start functioning from Thursday (August 27), until August 31. Taxpayers within the limits of Chennai can file the tax returns between 9.30 AM to 5.30 PM on all days, including Saturdays and Sundays. Those with taxable incomes of less than Rs.5 lakhs per annum and pensioners can file their returns.

Online method of paying taxes: Those within the limits of Tambaram can file their tax returns at the Tambaram Income Tax Office. Details and information regarding the office at which the returns have to be filed are available on www.incometax.gov.in. Taxpayers must provide details including PAN Card number, bank account number, IFSC Code and their mobile phone numbers.

Those with income over Rs.5 lakhs and those seeing refunds shall necessarily file the returns online for the Financial Years 2014-15 and 2015-16.

Senior citizens and differently-abled persons: The rules have been relaxed for those over the age of 80. They can fill up the returns and submit them at the counters. Special counters have been created for senior citizens and differently-abled persons.

Assistance counters, assistant income tax assessors, UTI counters, counters in nationalized banks to pay income tax, and PAN card verification counters will also function.

For further details and clarifications regarding filing income tax returns, please contact the Public Relation Officer at 044-28338314

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