BUDGET 2019 HIGHLIGHTS-DIRECT AND INDIRECT TAXATION

Budget 2019

Direct Taxation

1. New section 80EEA has been inserted to provide deduction with respect to interest paid on the self occupied property upto Rs. 1,50,000/- subject to the fulfilment of following conditions:

i. Loan has to be sanctioned by a financial institution during the period from 1st April, 2019 to 31st March, 2020
ii. The stamp duty value of the property must be upto Rs. 45 lakhs.
iii. The assessee must not be an owner of any other house property

1. Aadhaar and PAN can be used interchangeably i.e Aadhaar can be used for filing ITR.
2. TDS @ 2% will be deductible under section 194N on withdrawals of more than 1 CR from bank account in any financial year.
3. Surcharge for individuals having taxable income of Rs. 2 CR to 5 CR increased to 25%
4. Surcharge for individuals having taxable income of Rs. 5 CR to 10 CR increased to 37%
5. Benefit of Reduced corporate tax rate of 25% will be now be available to companies having turonver upto Rs. 400 cr which was earlier 250 cr
6. Section 35AD deduction extended to Li-On battery, semi-conductor, Laptops, Fabrication & Photovoltaic cell.
7. Deduction under section 80EEB is proposed for the payment of interest on loan taken to purchase electric vehciles.
8. Parking and other charges also comes under the ambit of TDS from 1st September, 2019 i.e in case of purchase of immovable property the tds shall now be deducted on the amount paid for parking or club membership fee etc.
9. W.E.F 1st September, 2019 TDS shall be deductible @ 5% from payment made by individuals and HUF to the contractors and other professionals in excess of Rs. 50 lakhs.
10. Any gift received by an NRI from an Indian Resident, in the form of money or property situated in india transfered on or after 5th July, 2019 will be taxable in the hands of Non resident.
11. Standard deduction for salaried emmployees raised form Rs. 40,000 to rs. 50,000
12. Threshold for TDS on interest on bank and post office deposits increased from Rs. 10,000 to Rs. 40,000
13. Exemption under section 54 is now available for purchase of two house properties (once in a life time)
14. Individuals having income upto Rs. 5 lakhs shall get a full rebate of the tax under section 87A

Indirect taxation

1. GST rate reduced for Electric Vehicles from 12% to 5%.