Raised Income Tax Standard Deduction up to Rs. 50,000/- for the F.Y. 2019-20 in the Budget 2019

In the Interim Budget presented on 1st February 2019, the Indian government has announced changes in the income tax rules for the financial year 2019-2020. These tax deduction rules are effective from April’19 onwards.

Highlights

·                                 » There is no change in income tax slab rate for financial year 2019-20 (AY 2020-21).

·                                 » The standard deduction of Rs. 40,000 has hiked up to Rs. 50,000 for salaried people and pensioners.

·                                 » Tax payers with taxable income up to 5,00,000 get full rebate under Section 87A. Rebate has been raised from Rs. 2,500 to Rs. 12,500.

·                                 » Under Section 23, Notional rent is not applicable on second home. A person can declare two of such houses as self-occupied and need not offer any notional rent for taxation purpose.

·                                 » TDS on interest from bank or post office deposits has been increased to Rs. 40,000, from current limit of Rs. 10,000.

·                                 » Exemption limit for gratuity is increased from Rs. 20,00,000 to Rs. 30,00,000.

Download And Prepare At a Time 100 Employees  Automated Income Tax Form 16 Part A&B (Modified Format) [This Excel Utility Prepare At a time 100 Employees Form 16 Part A&B in New Format for A.Y. 2020-21 ] ( Who are not able to download the Form 16 Part A from the TRACES Portal, they can use this utility)

The main feature of this Excel Utility:-

1)   Prepare At time 100 Employees  Excel Based  Form 16 Part B ( Modified Format of Form 16 Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]

2)   All the Amended Income Tax Section have in this utility as per Budget 2019

3)   You can print individual Form 16 Part Part B

4)   Most easy to install just like an Excel File

5)   Easy to Fill the all column

6)   Automatic Convert the Amount to the In-Words

Standard Deduction

For middle class salaried people and pensioners, it is a relief with hike in standard deduction from Rs. 40,000 to Rs. 50,000.

Earlier the standard deduction of Rs. 40,000 was proposed in Budget 2018, after replacing Rs. 15,000 and Rs. 19,200 as medical reimbursement and travel allowance. Now it has been hiked to Rs. 50,000 that means in AY 2020-21, all pensioners and salaried people would be eligible for fixed deduction of fifty thousand.

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