kept the income tax slab rates unchanged but announced a slew of new income tax proposals that could impact many tax payers.
- Additional income tax deduction of ₹1.5 lakh on home loans for affordable houses costing below ₹45 lakh. This benefit will be available for home loans taken till March 2020. Cumulatively, the interest paid on home loan deduction will go up to ₹3.5 lakh, from the current ₹2 lakh for self-occupied house property.
- The government also announced ₹1.5 lakh income tax deduction on interest paid on loans for purchase of electric vehicles.
- Increased income tax surcharge for HNIs (high net worth individuals) earnings more than ₹2 crore a year.
- The government also announced 2% TDS on cash withdrawal on amount exceeding ₹1 crore in a year.
- Transfer of any money or property situated in India by a person to a non-resident person as gift will be treated as income accrued in and will be taxable, except gift on the occasion of marriage or by closed relative as defined in U/S 56(2)(x) that is also exempted in India.
- Mandatory filling of returns by U/S 139 if
- Has deposited an amount of one crore or more in one or more accounts maintained with Banking company during the year.
- Has incurred expenses of Rs.2 Lacs or more on foreign travel.
- Has incurred expenses exceeding Rs.1 Lacs on electricity.