From income tax to GST on apartment, changes from 1st April 2019
- The income tax slab remains the same for the new financial year 2019-20 with fresh rebates
- Buying flats will also be cheaper from this month as a reduction in GST rates for under-construction flats comes into effect
With the beginning of the new financial year 2019-20, a slew of changes that can affect your financial preparation as a few changes related to income tax and GST came into effect from 1st April 2019. As it was announced in the interim budget 2019, all changes relating to income tax come into result from this month. For those people who were planning to buy a new apartment, the goods and services tax (GST) rates on all under-construction apartments have been reduced from today.
Here are five changes that came into effect from 1st April 2019.
1. Taxpayers with earnings of up to ₹5 lakh during the financial year are now qualified for full tax rebate. However, the tax slab will remain equal as the last financial year but those earning up to ₹5 lakh will not have to pay any tax.
2. You don’t have to pay any income tax on notional income from second house, in case the taxpayer has more than two properties which are self-occupied, then notional rent would require to be computed on the third and extra properties and offered to tax.
3. Leading to extra tax funds, the limit for standard deduction has been increase to ₹50,000 from ₹40,000 for the new financial year. The increase of standard inference limit by ₹10,000 will lead to tax investments of ₹3,120 for individuals in the highest tax bracket of 31.2%, excluding surcharge.
4. To give benefit to small tax payers, the TDS threshold has also been increased from 1st April, for interest income earned through post office deposits and bank; tax deducted at source (TDS) will be ₹40,000 against ₹10,000. Also, the TDS threshold for deduction of tax on rent will be ₹2.40 lakh from₹1.80 lakh last year.
5. With effect from 1st April, the GST Council has slashed tax rates for under-construction apartment in an reasonable category to 1%. GST rate on other categories has been condensed to 5% from the earlier 12%.
6. The Ministry of finance has extended long-term capital gains exclusion on selling of two residential houses provided the long-term capital gain is up to ₹2 crore. This is a one-time opening to claim such exception.
7. From now, you won’t be able to sell shares until you hold them in dematerialized form and according to SEBI instructions, it is now compulsory to hold shares in demat form if you want to sell it.