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<\/figure>\n\n\n\nTDS relief – Interim Finance Minister Piyush Goyal in Budget 2019 has given a big relief to millions of bank fixed deposit investors. It has been proposed that the threshold for TDS on interest earned on bank fixed deposit to be raised to Rs 40000 compared to Rs 10000 earlier.
This will greatly reduce the administrative hassles of the bank FD investors. Now, if the interest earned on bank fixed deposits exceeds Rs 40,000 in a financial year, then only the bank would collect TDS at the rate of 10 per cent and remit it to the central government. Do remember this does not end the tax liability of the individual. You as a bank FD holder are expected to assess own tax liability taking into account income tax slab rate and pay additional tax wherever applicable.<\/p>\n\n\n\n
Home benefits – There is more reason to take home loans\nand get another home. The Budget 2019 proposed the notional rent on the second\nself-occupied house should be done away. At present, the income tax on notional\nrent is payable if one has more than one self-occupied house.<\/p>\n\n\n\n
Considering the difficulty of the middle class having to\nmaintain families at two locations on account of their jobs, children\neducation, parents etc, the Budget of 2019 has\nproposed to exempt levy of income tax on notional rent on a second\nself-occupied house.<\/p>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2020\/01\/TDS-relief.jpg\")
<\/figure><\/div>\n\n\n\nAlso, the TDS threshold of rent has been increased from\nRs 1.8 lakh to Rs 2.4 lakh.<\/p>\n\n\n\n
On the housing side, as an amendment to Section 54 of the\nIncome Tax Act, the benefit of rollover of capital gains has been proposed to\nbe increased from 1 residential house to that of two now. This is for a\ntaxpayer having capital gains up to Rs 2\ncrore. This benefit could be exercised once in the lifetime of the taxpayer.<\/p>\n\n\n\n
Other key benefits – Farmers have been given a lot of\nfocus, amid talks of agrarian distress. The Budget 2019 has\nproposed giving Rs. 6000 per annum has to every farmer having up to 2 hectares\nland. The amount will be transferred in 3 instalments.<\/p>\n\n\n\n
Key rural focussed\nbudget announcement includes National\nKamdhenu Ayog for cows, Rs 750 crore allocation for National Gokul Mission,\ninterest subvention for farmers pursuing animal husbandry. Interest subvention\nfor farmers affected by natural calamities has also been proposed. Plus, there is interest subvention for timely\npayment by farmers.<\/p>\n\n\n\n With an eye on wooing unorganized workers, the government\nhas announced the Pradhan Mantri Shram Yogi Mandhan. It will provide assured\nmonthly pension of Rs 3,000 with the contribution of Rs 100 per month for\nworkers in the unorganized sector after\n60 years of age.<\/p>\n\n\n\n The focus\nremains on employment as India is poised to become a $5 trillion economy in the\nnext 5 years. With this in mind, measures to help ease cash flows of SME\/\nMSME\u2019s have been announced in the Union Budget 2019. <\/p>\n\n\n\n A scheme of sanctioning loans up to\nRs 1 crore in 59 minutes has been launched in Budget 2019. MSME\/ SMEs with earnings below Rs. 5 crore will soon have to file GST\nonly once in 3 months. A, 2% interest subvention scheme on MSME loans with a ticket size of Rs. 1 crore has been announced.\nMoreover, Govt projects now have to source 25% of their requirements from SMEs.\nOf this, the material to the extent of at least 3% will be\nsourced from women-owned SME\u2019s.<\/p>\n\n\n\n The interim Budget 2019 stands out for striking the right\ncords amidst global markets turmoil and\nelection fervour at home.<\/p>\n","protected":false},"excerpt":{"rendered":" The interim Budget 2019 of India by an interim finance minister has left a permanent imprint. The Union Budget 2019, which comes ahead of the all-important election. <\/p>\n![\"\"](\"\/wp-content\/uploads\/2020\/01\/incometax.jpg\")
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