As a consequence, even individuals with a gross income of Rs 6.50 lakhs will not be required to pay any income tax.
Provided they have made investments in PF, Insurance, Savings etc.
Also, the overall compliance processes for them were simplified.
Accordingly, the threshold limit for presumptive taxation of business was raised from Rs 1 crore to Rs 2 crore.
It is because the tax rebate which was earlier Rs 2,500 has now been raised to Rs 12,500.
Essay On If I Were A Finance Minister
This makes the income tax turn out to be NIL for taxpayers earning less than Rs 5,00,00 per annum.Also, cinema goers who were subject to multiple taxes upto 50% are now paying much lower tax at 12%.The GST exemption limit for small businesses has been doubled from Rs 20 Lakh to Rs 40 Lakh in case of goods.Here are the highlights of India Budget 2019 – 2020.As a result of continuous reduction in GST, most items of daily use now fall in the 0% to 5% tax slab.Such a rebate or deduction would amount to the lower of 100% of such income tax or Rs 12,500.The purpose of such a rebate is to reduce the tax burden of individuals in the lower income bracket.Consequently, tax benefit of Rs 4,700 Crore to more than 3 Crore salaried persons and pensioners would be provided.At present, income tax on notional rent is payable if one has more than one self-occupied house.Further, small businesses with a turnover of Rs 1.50 Crore are given an attractive composition scheme.According to the scheme, they would be required to pay a flat GST rate of 1%.