Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
Associate PartnerAssociate Partner
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Income Tax Budget 2019: Govt Gives Tax Benefits to Middle Class on Loans; Super Rich to be Taxed More

Nirmala Sitharaman in her maiden Budget speech proposed a 3 percent increase for annual incomes between Rs 2 crore and Rs 5 crore and a 7 percent increase for incomes above Rs 5 crore.


Updated:July 5, 2019, 8:58 PM IST
Income Tax Budget 2019: Govt Gives Tax Benefits to Middle Class on Loans; Super Rich to be Taxed More
Finance Minister Nirmala Sitharaman. (PTI)

Union Finance Minister Nirmala Sitharaman in her maiden budget on Friday kept the income tax slab rates unchanged but announced new income tax proposals that could impact many taxpayers. Making it convenient for the tax-payers, the government has proposed to make PAN and Aadhaar card interchangeable and allow those who don’t have PAN to file Income Tax Returns by quoting their Aadhaar card number. Sitharaman also told the House that more than 120 crore Indians have Aadhaar and so the proposal intends to make the process more convenient for the tax-payers.

RATE The Budget

As the government laid down a clear road map for the tax administration for over the next five years, here are the key changes in the income tax provisions:

- Additional income tax deduction of Rs 1.5 lakh on home loans for affordable houses costing below Rs 4 lakh till March 31, 2020. This would provide a total benefit of Rs7 lakh over a loan period of 15 years. The interest paid on home loan deduction will go up to ₹3.5 lakh, from the current ₹2 lakh for self-occupied house property.

- Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. "This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer," said Sitharaman.

- The Budget also proposes to levy a TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore annually from a bank account.

- The government set a Rs 1.05 lakh crore divestment target this year. Currently, investments made in ELSS (equity-linked savings scheme) mutual funds, which come with a lock-in period of three years, are eligible for a tax deduction of up to Rs 1.50 lakh under Section 80C of the Income Tax Act. However, the mutual fund advisors ask investors to be cautious as government ownership does not ensure capital protection in equity instruments.

- The government increased the income tax surcharge of 3 % for high net worth individuals (HNIs) with annual income between Rs 2 crore to Rs 5 crore a year. The income tax on incomes of Rs 5 crore and above will also be increased by 7%.

- The Budget also proposes faceless tax assessments. "The existing system of scrutiny assessments in the Income-tax Department involves a high level of personal interaction between the taxpayer and the Department, which leads to certain undesirable practices on the part of tax officials," she said.

- It was also proposed that pre-filled tax returns will be made available to taxpayers which will contain details of salary income, capital gains from securities, bank interests, and dividends, etc and tax deductions

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
Infosys 643.00 -1.17
IRCTC 930.75 3.38
HCL Tech 1,127.45 2.95
HDFC 2,162.85 0.93
Maruti Suzuki 7,442.45 0.03
Company Price Change %Gain
Apollo Tricoat 289.00 3.27
IRCTC 931.60 3.47
Infosys 643.20 -1.16
NCC 55.10 -1.78
BPCL 505.00 -4.19
Top Gainers
Company Price Change %Gain
HCL Tech 1,127.05 2.91
Eicher Motors 21,119.45 2.92
Tech Mahindra 741.40 2.04
Yes Bank 52.25 2.05
Larsen 1,450.75 1.32
Company Price Change %Gain
HCL Tech 1,127.75 2.93
Larsen 1,450.60 1.37
Yes Bank 52.20 1.85
Vedanta 148.45 1.61
Tata Motors 134.40 1.32
Top Losers
Company Price Change %Gain
BPCL 505.65 -4.07
Bharti Airtel 353.25 -1.97
IOC 142.15 -1.63
Grasim 732.05 -1.49
Bharti Infratel 255.55 -1.47
Company Price Change %Gain
Bharti Airtel 352.80 -2.14
Infosys 643.20 -1.16
ONGC 140.60 -0.95
Power Grid Corp 204.70 -0.75
M&M 590.45 -0.21

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results