Let’s take a quick look at the key changes in the Interim Budget 2019 from a personal tax perspective, which will be effective from 1 April 2019.
New Income Tax Rules: While the changes in income tax rules may seem to be small, the Modi government may have succeeded in “putting more money into the hands” of many small tax payers. The Finance Minister presented the Interim Budget in February 2019. The Interim Budget 2019 offered benefits to small farmers and the workers in the unorganised sector through interest subventions and pension coverage. It also introduced changes in income tax rules to offer relief to small taxpayers and to the owners of residential properties. Let’s take a quick look at the key changes in the Interim Budget from a personal tax perspective, which will be effective from 1 April 2019. Change in tax rebate Earlier, there was a rebate available for individuals earning annual income up to Rs 3.5 lakh. The total income threshold is now increased to Rs 5 lakh p.a., resulting in an increase in the tax rebate from Rs 2,500 to Rs 12,500. As the benefit is applicable to individuals having net taxable