Finance minister Piyush Goyal, on February 1, 2019, proposed to increase the tax deducted at source (TDS) limit on rent income, to Rs 2.4 lakhs from the current Rs 1.80 lakhs. Presenting the budget for 2019-20 in the Lok Sabha, Goyal also announced that the TDS threshold on interest from bank and post office deposits will be raised from Rs 10,000 to Rs 40,000. The government also proposes to exempt tax on notional rent for unsold units for two years, he added.
Among other measures, he said benefits under Section 80(i)BA were being extended for one more year, for all housing projects approved till the end of 2019-2020. Announcing other measures, he said the government has proposed amendments to ensure streamlined system for levy of stamp duties to be imposed and collected at one place. Stamp duty will be collected by stock exchanges on basis of domicile of client, he added.
Goyal also expressed confidence over crossing Rs 80,000 crore disinvestment target this year. The finance minister also added that expenditure will rise by 13 per cent from revised estimate 2018-19 to budget estimate 2019-20. Along with completion of fiscal deficit consolidation programme, government will now focus on debt-to-GDP ratio consolidation, he added. Stating that the NDA government has laid the foundation for India’s growth and development for times to come, he said that its Vision 2030 would entail expanding rural industrialisation, using modern industrial technologies and Make In India approach.
Impactful steps have been taken to reduce tax, bring benefits for middle class citizens, he said, adding as many as 34 crore Jan Dhan accounts were opened in five years and that Aadhaar had ensured benefits reached the poor.