Key Announcements on Income Tax:
- Empty bag for salaried, as old slabs continues
- Super rich to be squeezed more (2 crs & upward) with additional surcharge
- Additional deduction of ₹1.5 lac on home loan interest paid offered – but for affordable house of ₹45 lacs borrowed, on or before March 31, 2020
- PAN & AADHAAR number now becomes inter-operable
- Pre-filled Tax return form to be available soon
- EV purchase loan benefit (electric vehicle) – 1.5 lacs interest benefit on the loan
- Cash withdrawals over ₹1 crore a year will attract TDS of 2%
Other Key Areas:
- EV (electric vehicle) to cost less – GST brought down to 5% from 12%
- Petrol & Diesel cost to go up by ₹1/litre – on account on Infra cess
- Gold to cost more – custom duty hiked from 10% to 12.5%
- Imported books – 5% customs duty
- Corporate tax rate of 25%; is now extended to companies with annual turnover up to 400 crs
- Angel tax exemption for start-ups on the share premium collected
- Pension for shopkeepers, retailers with turnover less than 1.5 crores
- Buyback of shares by listed companies, to pay additional tax at 20%
