Budget 2019: High net individuals to be taxed more

Finance Minister Nirmala Sitharaman today cleared the strategy of Modi government during the budget speech. The full focus of the government is now on revenues. Therefore, the declaration of additional tax (surcharge) has been announced for the rich people of the country. The Finance Minister said that those who are being burdened by this tax will bear the load easily.

In any budget, the tax issue for the common man is always the biggest tension. In this connection, a decision has been taken to increase income tax surcharge in the budget on the millionaires of the country.

Presenting the budget of the country, Union Finance Minister Nirmala Sitharaman said that surcharge is being made for those who earn more than 2 crores for the development of the country. The Finance Minister announced that those whose income is between 2 crores and 5 crores annually, they will be surcharged 3% while those earning more than 5 crore will have to pay 7% surcharge.

However, in the budget, the middle classes were not given any relief in income tax. It is worth noting that on February 1, while presenting the interim budget of the tenure of the Modi government, then then Finance Minister Piyush Goyal, giving a gift to the middle class, by increasing income tax limit to 5 lakh. Along with that, he also gave indications of a change in the tax slab in the new government. But the middle class was left empty handed in this budget in the income tax department. There was no change in the income tax slab.

Tax exemption on housing loan interest upto 3.5 lakhs

Finance Minister Nirmala Sitharaman made big announcements for women, farmers and rural India while presenting the first budget of Modi Government 2.0. Giving great relief to the middle class, the Finance Minister has increased the income tax exemption on home loan interest from Rs 2 lakh to 3.5 lakh rupees a year. This  will be available at the house cost up to Rs 45 lakhs. This discount is for the house to be bought by March 31, 2020.

What is the provision

Monthly Installment of Home Loans (EMI) includes both principal and interest. If you look at the details of the EMIs of home loan, you will find that in the initial years, interest is more in that and less of the principal. In the amount of money you pay to the bank as a monthly installment of home loan, you can save tax under Section 80C of the Income Tax Act on the original fund. Similarly, income tax can avail the income tax rebate under section 24 of the tax laws.

Tax deduction up to Rs 1.5 lakh per annum on the payment of principal of home loan under Section 80C is included. Also, under Section 24, there was a concession of up to Rs 2 lakh on the payment of interest in the first financial year. It has been increased by the Finance Minister to 3.5 lakhs.