The interim budget passed on 1st Feb 2019 had some benefits for all of us. Let’s take a look at them!
- Tax slabs remain as it is. However, tax rebate is proposed to increase from Rs.2,500 to Rs.12,500 when taxable income is within Rs.5,00,000 per anum. This will lead to increased spending/consumption – leading to a boost for the consumer goods industries.
- Standard deduction limit is proposed to increase to Rs.50,000. This is beneficial for salaried employees with tax benefits from Rs.2080-Rs.3588.
- Until now, if a person owned more than one house property for self-occupation, then only one house property was considered as self-occupied and the other property was subject to tax based on a notional rent even if the property was not actually let out.
It is now proposed to extend the ‘self-occupied property tag’ to two residential houses as against one earlier. Accordingly, the second self-occupied house property would also not be subject to tax on notional basis.
- Right now, an exemption from capital gains coming out from the sale of a residential house can be claimed if the taxpayer invests in another residential house. This exemption is restricted to investment by way of purchase or construction of only one residential house.The Finance Bill proposes a one-time relief to taxpayers for capital gains that come out from the sale of a residential property (not exceeding Rs.2 Crore) to utilize the amount for purchase or construction of two residential houses instead of one.
- 2% Rebate on Loans upto Rs.1 Crore for Micro, Small & Medium Enterprises(MSMEs).
- Government enterprises need to source 25% from Small & Medium Enterprises(SMEs). Out of that 3% needs to be sourced from Women Owned SMEs.