THE INTERIM BUDGET HOW DOES IT AFFECT US THE DEFENCE PENSIONERS (OFFICERS) - INCOME TAX
The broad details of the budget are given in the Document available here, please open the same by
As far as we are concerned the details are given below.
The following points were proposed in case of taxation for the individual tax payers :-
Note For senior citizens the zero tax bracket remains at Rs 3,00,000/-
• Under section 87A, for individual taxpayers having taxable annual income of up to Rs.0.5 mn, it is proposed to increase the maximum amount of tax rebate to Rs.12,500 from existing Rs.2,500.
• Under section 16, the Standard Deduction is proposed to be raised from the current Rs.40,000 to Rs.50,000.
• Under section 194A, the TDS threshold on interest earned on bank/post office deposits is proposed to be raised from Rs.10,000 to Rs.40,000.
• Under section 194-I, the TDS threshold for deduction of tax on rent is proposed to be increased from Rs 1,80,000 to Rs. 2,40,000.
• The benefit of rollover of capital gains under section 54 of the Income Tax Act is proposed to be increased from, investment in one residential house to two residential houses, for tax payers having capital gains of up to Rs.2 Crore. This benefit can be availed once in a life time.
NOTE --
Much hyped that there will be no tax upto 5 lakhs is clarified as under :-
As mentioned above the rebate under Sec 87A has been increased, however the bracket remains at 5%. If the taxable income, i.e the final figure after taking into account all allowable deductions, on which tax is calculated is 5 Lakh or less, then you pay no tax since the rebate on tax under 87A which is presently Rs 2500 has been increased to 12500 which neutralises the 5% bracket conditionally.
It is therefore clear that in case the TI is above 5 Lakh even by one rupee, Sec 87A is Not Applicable and you pay 12500 or 10000 (Sr Ctz) as applicable.
CONCLUSION Since most of us are in the bracket above Rs 5 Lakh there will be no change or any rebate thus for us all, in the Income Tax BUT FOR SMALL relief on Rs 10000/- increased in the standard deductions amounting to Rs 2080/- if one is in 20% bracket or Rs 3120/- while in 30% bracket.
The broad details of the budget are given in the Document available here, please open the same by
As far as we are concerned the details are given below.
The following points were proposed in case of taxation for the individual tax payers :-
Note For senior citizens the zero tax bracket remains at Rs 3,00,000/-
• Under section 87A, for individual taxpayers having taxable annual income of up to Rs.0.5 mn, it is proposed to increase the maximum amount of tax rebate to Rs.12,500 from existing Rs.2,500.
• Under section 16, the Standard Deduction is proposed to be raised from the current Rs.40,000 to Rs.50,000.
• Under section 194A, the TDS threshold on interest earned on bank/post office deposits is proposed to be raised from Rs.10,000 to Rs.40,000.
• Under section 194-I, the TDS threshold for deduction of tax on rent is proposed to be increased from Rs 1,80,000 to Rs. 2,40,000.
• The benefit of rollover of capital gains under section 54 of the Income Tax Act is proposed to be increased from, investment in one residential house to two residential houses, for tax payers having capital gains of up to Rs.2 Crore. This benefit can be availed once in a life time.
NOTE --
Much hyped that there will be no tax upto 5 lakhs is clarified as under :-
As mentioned above the rebate under Sec 87A has been increased, however the bracket remains at 5%. If the taxable income, i.e the final figure after taking into account all allowable deductions, on which tax is calculated is 5 Lakh or less, then you pay no tax since the rebate on tax under 87A which is presently Rs 2500 has been increased to 12500 which neutralises the 5% bracket conditionally.
It is therefore clear that in case the TI is above 5 Lakh even by one rupee, Sec 87A is Not Applicable and you pay 12500 or 10000 (Sr Ctz) as applicable.
CONCLUSION Since most of us are in the bracket above Rs 5 Lakh there will be no change or any rebate thus for us all, in the Income Tax BUT FOR SMALL relief on Rs 10000/- increased in the standard deductions amounting to Rs 2080/- if one is in 20% bracket or Rs 3120/- while in 30% bracket.
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