7 things you need to know to about Income Tax to Goods and Service Tax!

What changes will affect your business from today? No need to worry! Here are a few changes in the new financial year, If you have any queries do mail us at hello@financebazaar.com.

  • The income tax slab remains the same for the new financial year but with fresh rebates
  • Buying flats will also be cheaper from today as a decrease in GST rates for under-construction flats comes into effect

With the start of the new financial year 2019-20 from today, a few changes that can affect your economic preparation related to income tax and GST come into effect from April 1. As announced in the interim budget 2019, all changes relating to income tax come into results from today. For those who are planning to buy a new flat, the goods and services tax (GST) rates on all under-construction flats have been reduced from today. Here are few changes that came into effect from today.

  1. You do not have to pay any income tax on notional income from the second house and in the case of a taxpayer, if has more than two properties which are self-occupied, then notional rent would need to be computed on the third and extra properties and obtainable to tax.
  2. Taxpayers with income of up to ₹5 lakh during the financial year are now eligible for full tax rebate but the tax slab will stay the same as the last financial year(2018) but those who are earning up to ₹5 lakh will not have to pay any tax.
  3. Benefiting small taxpayers, the TDS threshold has also been increased from today. For interest income earned through bank and post office deposits, tax deducted at source (TDS) will be ₹40,000 against ₹10,000. In the same way, the TDS threshold for deduction of tax on the lease will be ₹2.40 lakh from ₹1.80 lakh last year.
  4. Leading to additional tax funds, the limit for a standard deduction has been increased to ₹50,000 from ₹40,000 for the new financial year. The increase of the standard deduction limit by₹10,000 will lead to tax savings of ₹3,120 for individuals in the highest tax bracket of 31.2%, excluding surcharge.
  5. With effect from April 1, the GST Council has slashed tax rates for under-construction flats in an affordable category to 1%. GST rate on other categories has been decreased to 5% from the earlier 12%.
  6. The finance department has extended long-term capital gains exemption on the selling of two residential houses provided the long-term capital gain is up to ₹2 crores. This is a one-time chance to claim such exemption.
  7. From now, you will not be able to sell shares unless you hold them in dematerialized form. According to the Securities and Exchange Board of India (SEBI) information, it is now compulsory to hold shares in demat form if you are planning to sell it.

 

Tags: Income Tax, Goods and Service Tax, Income Tax



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