In the Union Budget 2019, the Finance Minister has announced some proposals for the new Income Tax regime that could really have an advantageous effect on many taxpayers, however, keeping the income tax slab rates as unchanged.
One such proposal that could show an advantageous means for many of the individuals is that the taxpayers could either use Aadhaar or PAN for their filing of income tax returns and these could be used interchangeably. And the experts believe strongly that this proposal will definitely be beneficial for those taxpayers that have Aadhaar but do not have a PAN card.
The below listed are some of the provisions that are enlisted in the road map for benefitting tax administration:
- For all the home loans for affordable housing costing lesser in value than Rs. 4 Lakh until 31st March 2020, it will be allowed for an additional income tax deduction of Rs 1.5 lakh. Such a provision will bring in a benefit of up to Rs. 7 lakh, for a loan period of 15 years. Moreover, the deduction offered on the interest paid for home loans would go up to Rs. 3.5 lakh, from the present value of Rs. 2 lakh, in the case of self-occupied housing property.
- Also, the provision includes an additional income tax deduction of Rs 1.5 lakh for the interest paid on loans taken towards buying electric vehicles.
- One another provision implemented is that there would be a TDS charge of about 2 percent on the cash withdrawals exceeding the Rs. 1 crore per annum from any bank account.
- Further, it is included that the income tax surcharge of 3 percent charged on the high net worth individuals with an annual income range of Rs. 2 crores to Rs. 5 crores would be increased. Moreover, it is also said that the income tax on the incomes of more than Rs. 5 crores will also be raised by 7 percent.