A slew of tax changes and price hikes will come into effect from the new financial year, beginning April 1. CNBC-TV18 has compiled a list of changes that would be implemented starting next month:
Tax
In the Interim Budget, the finance ministry made key announcements related to income tax and goods and services tax (GST).
With regards to income tax, every individual earning up to Rs 5 lakh per annum will not have to pay income tax. The government announced a full tax rebate, and not a change in the threshold, for the taxes paid by the taxpayers before the amendment in the law was announced. This translates to a benefit of Rs 18,500 crore to more than three crore taxpayers.
The government also extended income tax relief on notional rent from unsold houses to two years. The tax on notional rent on unsold inventory will be levied after two years.
From April 1, the GST council will slash tax rates for under-construction flats in an affordable category to one percent. GST rate on other categories will be reduced to 5 percent from the earlier 12 percent, effective April 1.
A few changes in the tax deduction at source were also announced on February 1. The tax deduction at source (TDS) limit will be hiked from Rs 10,000 crore to Rs 40,000 on post-office savings and there will be no tax deduction at source for a house rent of up to Rs 2.4 lakh per year.
With respect to the capital gains tax, the government increased the exemption limit to Rs 2 crore and this will be available on two house properties on February 1.
CNBC-TV18 reported on March 29 that new tax norms in addition to this will be introduced before April 10. The new tax norms are likely to include a 10 percent tax on corporates and individuals for gains made on assets worth over Rs 1 lakh.
Price Hikes
Auto major Mahindra & Mahindra (M&M) Thursday said it will increase the price of its passenger and commercial vehicles by Rs 5,000 to Rs 73,000 from April to partially offset the impact of rising input costs.
Not only cars, even milk is set to become expensive from April 1. According to a report by The Times of India, the price of buffalo milk is set to increase by at least Rs 2 from April 1. However, if one consumes packaged milk from brands like Amul, Gokul, etc, the increase in price will not have an impact.
Stock market
From April 1, shares can be transferred in the demat form only, according to the Securities and Exchange Board of India (Sebi).
The Sebi's circular said the transfer of shares of listed companies can be done only in the dematerialised (demat) form from April 1 but investors are not barred from holding shares in the physical form.
Shares in the demat form would help in maintaining a transparent record of shareholding at companies amid rising concerns over beneficial ownership of entities.
(With inputs from agencies)
First Published: Mar 29, 2019 2:22 PM IST
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