Intrim Union Budget 2019-20
Intrim Union Budget 2019-20
Intrim Union Budget 2019-20
BUDGET
(2019-20) Presented by
Neha Sand
Krishna Italia
Rukmani Gupta
UNION • According to Article 112 of the Indian Constitution, the
Union Budget of a year, also referred to as the annual
• Revenue budget
As the name suggests, a revenue budget accounts for all the revenue expenditure and
receipts. If the revenue expense is in excess of the receipts, the government suffers a
revenue deficit.
Tax • Income Tax slab will remain the same for FY 2019-20.
• TDS limit under Section 194A hiked from Rs 10,000 to Rs 40,000 on Post Office
Savings and Bank Deposits.
• Standard Deduction for the salaried class increased from Rs 40,000 to Rs 50,000.
• Section 54 exemption now available on the second house property, provided the
capital gains is less than or equal to Rs. 2 crores – to be availed only once in a
lifetime.
Tax • Benefits under Section 80-IBA to be extended
for one more year – to the housing projects
proposals approved till 31 March 2020.
2019-2020 at
a glance for • Period of exemption from levy of tax on
notional rent, on unsold inventories is extended
Businesses, from one year to two years, starting from the
MSME & end of the year in which the project is
completed.
Real estate
• SMEs with earnings below Rs 5 Crores will
soon file GST returns only once in 3 months.
• MSMEs and Traders to note that GST Registered SME units will get 2% interest
rebate on an incremental loan of Rs. 1 Crore.
• Limit to deduct TDS on Rent under Section 194I has been increased from Rs
1,80,000 to Rs. 2,40,000.
Income tax slabs comparison FY 19-20 Vs FY 18-19
Income range
Tax Rate FY 2019-20, AY 2020-21 Tax Rate FY 2018-19, AY 2019-20
per annum
Up to Rs. 2.5
No Tax No Tax
lakhs
Above Rs. 2.5
lakhs to Rs. 5 5% + 4% cess 5% + 4% cess
lakhs
Above Rs. 5
lakhs to Rs. 10 20% + 4% cess 20% + 4% cess
lakhs
Above Rs. 10
lakhs to Rs. 50 30% + 4% cess 30% + 4% cess
lakhs
Above Rs. 50
lakhs to Rs. 1 30% + 10% surcharge + 4% cess 30% + 10% surcharge + 4% cess
crore
Above Rs. 1 crore 30% +15% surcharge + 4% cess 30% +15% surcharge + 4% cess
100% tax rebate subject to maximum of Rs. 100% tax rebate subject to maximum of Rs.
Rebate under 12,500 available to resident individual 2,500 available to resident individual whose
section 87(A) whose net taxable income does not exceed net taxable income does not exceed Rs. 3.5
Personal Proportionate exemption on long-term capital
gains arising from proceeds of sale of residential
tax house extended to purchase of two residential
houses from one house, subject to:
• https://cleartax.in/s/interim-budget-2019