Its impact on your personal finances , The year 2019 saw two Union Budgets being presented. Due to this, there were many tax changes that affected salaried individuals and the super-rich. Here are 13 big tax changes that happened in 2019 that you need to know about.
A lot of big things happened on the personal taxation front in 2019. These changes will help salaried people and pensioners save more tax. Meanwhile, the uber rich got to take a big hit on the taxation front.
Here are 13 big tax changes that happened in the year 2019.
No tax liability if your taxable income does not exceed Rs 5 lakh
This was a big announcement for individual taxpayers made by then finance minister, Piyush Goyal during the interim Budget in February 2019. It was announced that there will be no tax liability if the net taxable income does not exceed Rs 5 lakh.
This is because an individual will be able to able to claim the tax relief under section 87A which has been hiked to Rs 12,500 from Rs 2,500 earlier.
(Net taxable income refers to total income less of deductions under section 80C to 80U of the Income Tax Act.)
However, remember to avail this benefit, you will still have to file income tax return (ITR). As per income tax laws, it is mandatory to file(ITR ).
if the income in a financial year exceeds the basic exemption limit.
Withdrawal from NPS becomes tax-free
Good news came for those individuals investing in the National Pension System (NPS) as lump-sum withdrawal at the time of maturity became fully tax-exempt. Earlier, only 40 per cent of lump-sum withdrawn was exempt from tax.
According to NPS rules, a subscriber can withdraw up to 60 per cent from NPS as lump-sum, rest 40 per cent has to be utilised for buying annuity.
PAN- Aadhaar interchangeability
The Finance Minister Nirmala Sitharaman , in her maiden budget, announced that Aadhaar number can be quoted instead of PAN wherever quoting of PAN is mandatory. Due to this amendment, the Central Board of Direct Taxes (CBDT) has revised more than 100 forms via a notification dated November 6, 2019.
The amendments allow individuals to quote their Aadhaar number in forms such as Form 15G/Form-15H and so on.
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