The start of the new financial year 2019-20 has also come with slight changes in the income tax and GST rules from April 1. The changes that were announced during the interim budget 2019 will come into effect from April 1, 2019. So, those who are looking to buy a new flat can take a deep relief breath as the GST rates on all the under construction flats been decreased from today onwards.
Seven Major Changes that will be Effective from Today Concerning Income Tax & GST:
- The citizens in the country would not be required to pay any income tax on notional income received from their second houses. If in case, any particular individual has two self-occupied properties, then the individuals must have to compute rent on the third and additional parties, and also offer the income to tax.
- The taxpayers with an annual income of up to INR 5 lakh would be eligible to get a full tax rebate. The tax slab would remain the same, but the taxpayers are not required to deposit any tax on earnings up to INR 5 lakh.
- The TDS threshold has also been increased from today onwards to benefit the small taxpayers. The TDS threshold has been kept to INR 40,000 against INR 10,000 for the interest income earned through bank and post office deposits. On the other hand, the TDS threshold has also been increased to INR 2.4 lakh from INR 1.80 lakh in case of the tax on rent.
- The limit for standard deduction has also been increased to INR 50,000 from INR 40,000 leading to an extra tax savings of around INR 10,000. This will lead to a tax savings of around INR 3,120 for individuals falling in the highest tax bracket of 31.2% exempting surcharge.
- The tax rates for under construction houses have also been slashed. The newer rate implies a 1% GST rate on affordable houses whereas 5% on others.
- The long-term capital gains exemption has also been increased by the finance ministry keeping that the capital gains do not exceed the amount of INR 2 crores for purchase or construction of up to two-house properties. It is also marked as a once in a lifetime opportunity for individuals or HUFs.
- From April 1, 2019, onwards, the individuals would also not be able to sell shares unless they are held in a dematerialized form. As per the new SEBI norms, it is mandatory for one to keep shares in a demat form if he/she wants to sell it.
