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| S.No. | Parameters | Budget 2014 | Budget 2015 | Budget 2016 | Budget 2017 | Budget 2018 | Budget 2019 |
|---|---|---|---|---|---|---|---|
| Changes Applicable for F.Y. | April 2014 - March 2015 | April 2015 - March 2016 | April 2016 - March 2017 | April 2017 - March 2018 | April 2018 - March 2019 | April 2019 - March 2020 | |
| 1 | Basic exemption - It is an amount up to which an individual is not required to pay any income tax on his total income. | Income-tax basic exemption limit for the persons below the age of 60 years was raised by Rs. 50,000/- that is, from Rs.2 lakh to 2.5 lakh . Further, in case of senior citizens(60 years or more) the exemption limit raised was from Rs. 2.5 lakh to 3 lakh. |
No change since 2014 | No change since 2014 | No change since 2014 | No change since 2014 | No change |
| 2 | Tax rate - The rate at which income tax shall be levied. | No change | No change | No change | Tax rate for the persons falling under the slab (2,50,000 to 5,00,000) was reduced to 5% from10%. | No change in tax rate. The earlier cesses has been withdrawn and a new Cess has been introduced @ 4% in the name of Health & Education cess. | No change |
| 3 | Surcharge - Surcharge is levied on the total tax amount depending on the income | Surcharge of 10% was levied if the income exceeds Rs.1 crore of an individual. | Surcharge was raised to12% from 10% if income exceeds Rs.1 crore of an individual. | Surcharge was increased from 12% to 15% if income exceeds Rs.1 crore of an individual. | Ambit of surcharge was widened in this budget. Surcharge of 10 % was levied if income is more than 50 lakhs but less than Rs. 1 crore and Surcharge of 15% in case income is more than 1 crore of an individual. | No change | New rates and range of income for surcharge was introduced in this budget The rate of surcharge is as below : Income above Rs. 50 lakh but upto Rs. 1 crore = 10% Income above Rs. 1 crore but upto Rs. 2 crore = 15% Income above Rs. 2 crore but upto Rs. 5 crore = 25% Income above Rs. 5 crore = 37% |
| 4 | Section 87A - It is a rebate which is provided for individuals who are earning income below the specified limit. | No change | No change | The maximum limit of tax rebate under section 87A was increased from Rs. 2,000 to Rs.5,000,on income upto Rs.5 lakhs | The maximum limit of tax rebate under section 87A was reduced from Rs. 5,000 to 2,500/- . Further now , rebate under section 87 A would be available if Income is upto 3.5 lakh instead of Rs. 5 lakh. | No change | The maximum limit of tax rebate under section 87A was increased from Rs. 2500 to 12,500/- . Further now , rebate under section 87 A would be available if Income is upto 5 lakh instead of Rs.3.5 lakh. |
| 5 | Section 80C -It allows to save tax by making investments/expenditure under the specified avenues. | Investment limit under section 80C of the Income-tax Act was raised from Rs.1 lakh to Rs.1.5 lakh. | Sukanya Samriddhi Scheme included as one of the investment options for the purpose of section 80C. | No change | No change | No change | |
| 6 | Section 80TTB - It allows deduction in respect of interest income from deposits held by senior citizens. |
In respect of interest income from deposits held by senior citizens. |
No Such Section | No Such Section | No Such Section | New section 80TTB has been introduced so as to allow a deduction upto Rs 50,000/- in respect of interest income from deposits held by senior citizens. However, no deduction under section 80TTA shall be allowed in these cases. | No change |
| 7 | Section 80D - It allows you deductio on the payment made towards health insurance premium and preventive health checkup. | No change | The limit of deduction u/s 80D on health insurance premium was raised from Rs.15,000 to Rs.25,000 (in case of senior citizen from Rs. 20,000 to Rs.30,000). | No change since 2015 | No change since 2015 | For Senior citizen, limit has been increased from Rs. 30,000 to Rs.50,000 (Aggeregate deduction if both parents and individual are senior citizen will be Rs. 1,00,000/-) | No change |
| 8 | Section 80DD - It allows a deduction when an individual incurrs any expenditure on medical treatment of the dependent disabled person. | No change | The limit of deduction u/s 80DD was increased from Rs.50,000 to Rs.75,000 in case of normal disability. Further, the limit of deduction in case of severe disability was raised from Rs.1 lakh to Rs.1.25 lakh |
No change since 2015 | No change since 2015 | No Change | No change |
| 9 | Section 80DDB - It allows a deduction when an individual incurrs any expenditure on medical treatment of the specified diseases. | No change | In this budget, deduction u/s 80DDB was specifically introduced for super senior citizen for Rs.80,000 or the amount incurred whichever is lower. | No change since 2015 | No change since 2015 | In this budget, under deduction u/s 80DDB, the class of super senior citizen has been submerged into senior citizen raising the limit of Rs.60,000/80,000 to Rs. 100,000 or the amount incurred whichever is lower. | No change |
| 10 | Section 80U - It allows deduction to a person who himself is disabled. | No change | The limit of deduction u/s 80U was increased from Rs.50,000 to Rs.75,000 in case of normal disability. Further, the limit of deduction in case of severe disability was raised from Rs.1 lakh to Rs.1.25 lakh |
No change since 2015 | No change since 2015 | No change | No change |
| 11 | Section 80CCC - It provides deduction for contribution to certain Pension Funds. | No change | The limit of deduction u/s 80CCC was increased from Rs.1 lakh to Rs.1.5 lakh. | No change since 2015 | No change since 2015 | No change | No change |
| 12 | Section 80CCD - It provides deduction for contribution to National Pension Scheme. | No change | The limit of deduction u/s 80CCD i.e. National Pension Scheme (NPS) was increased from Rs.1 lakh to Rs.1.50 lakh. Further, deduction of upto Rs.50,000 over and above the limit of Rs.1.50 lakh was introduced in respect of contributions made to NPS. | No change | Section 80CCD(1) was amended so as to increase the limit from 10% to 20% of gross total income in case of self employed individuals. |
No change | No change |
| 13 | Section 80G - It allows deduction to certain funds, charitable iunstitutions etc. | No change | No change | No change | Deduction for cash donations reduced from Rs.10,000 to Rs.2000 i.e. dedcution not allowed if donation made in cash more then Rs. 2,000/-.. | No change | No change |
| 14 | Section 80GG - It provides deduction in respect of rent paid | No change | No change | Deduction under section 80GG of the Income-tax Act on account of rent paid by an individual was increased from Rs.2,000 per month to Rs.5,000 per month | No change | No change | No change |
| 15 | Section 80TTA : Interest from Savings Bank A/c is eligible for deduction under this section. | No change | No change | No change | No change | No change for individual below the age of 60 years and for the senior citizens the maximum benefit of sec 80TTA and 80TTB shall not exceed Rs.50,000. | No change |
| 16 | Section 80EE - It is a additional deduction on interest on home loan only for the first time home buyers. | No such section | No such section | Sec 80EE was introduced for the benefit of first home buyers through which benefit of Rs. 50,000/- can be availed but subject to fullfillment of certain conditions.This benefit is in addition to sec 24(b). | Not applicable | No change | No change |
| 17 | House Property - It is the head where income from house property or interest on home loan deduction benefit is accounted for. | Deduction limit of Sec 24(b) on account of interest on loan in respect of self occupied house property was raised from Rs.1.5 lakh to Rs.2 lakh. | No change | No change | The provision for set-off of loss under the head "Income from house property" was capped by the way of amendment , now in any assessment year the loss from house property can be set of against any other income only up to Rs. 2,00,000. The unabsorbed loss shall be allowed to be carried forward for set-off in subsequent years. | No change | No change |
| 18 | House Property - It is the head where income from house property is accounted for. | No change | No change | The period for completion of acquisition or construction of the self-occupied house property was increased from 3 years to 5 years from the end of the financial year in which capital was borrowed for claiming deduction of interest on borrowed capital. | No change | No change | No change |
| 19 | Capital Gain - It is the head where income from sale of capital asset is accounted for. | No change | The period of holding of an immovable property to qualify as long-term capital asset was reduced from existing 36 months to 24 months. | For the first time , long-term capital gains from listed equities exceeding one lakh has been taxed at 10 percent without indexation.Further, Short-term capital gains will continue to be taxed at 15 percent for a one-year hold period. | Section 54 amended. In budget 2019, the benefit has been increased from one residential house property to two residential house property provided taxpayer having capital gain upto Rs. 2 crore and this benefit shall be available once in lifetime. | ||
| 20 | Transport Allowance - It is an allowance give to meet the commuting expenses between place of residence and place of duty. | No change | Transport allowance exemption was increased for salaried individuals. Exemption on account of transport allowance was doubled to Rs.1,600 per month from Rs. 800 per month. | No Change | No Change | In lieu of transport allowance &medical allowance , a Standard Deduction of Rs. 40000/- has been introduced in this budget. | The standard deduction of Rs.40,000/- has been increased to Rs.50,000/- |
| 21 | Section 44ADA - It is a Presumptive income scheme for professionals | No such section | No such section | Presumptive Taxation Scheme was extended for persons having Income from Profession by the way of introduction of sec 44 ADA. | No change | No change | No change |
| 22 | Section 194A - It deals with the deduction of TDS on interest other than interest on securities like Interest on FD, Interest on Loans and Advances other than banks. | No such change | No such change | No such change | No such change | The limit of TDS on interest for deposits for senior citizens have been increased from Rs. 10,000 to Rs. 50,000. | TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits |
| 23 | Section 194IB - As per this section , TDS is levied on rent payment subject to certain conditions. | No such section | No such section | No such section | Section 194-IB was inserted to provide that an Individual and HUF (even if not liable to tax audit under Section 44AB) are liable to deduct TDS at the rate of 5% if the payment of rent exceeds Rs. 50,000 per month. | No change | No change |
| 24 | Section 234F - Through this section , fees for late filing of Income Tax Return is levied. | No such section | No such section | No such section | To ensure filing of returns within due date, fee for delayed filing of return levied. If the return is filed after the due date but on or before the December 31 of the assessment year, then person shall be liable to pay Rs.5,000. If return is filed after December 31 of the Assessment year, the charges shall be Rs.10,000. However, in a case where the total income does not exceed five lakh rupees, the fee shall not exceed Rs.1,000. | No change | No change |
| 25 | Measures to curb black money - Means to fight against corruption and black money | No such measure | The provisions of Section 269SS and 269T of the Income-tax Act were amended so as to prohibit acceptance or re-payment of advance in cash of Rs.20,000 or more for any transaction in immovable property. | No such measure | Sec 269ST was introduced stating that no person can receive an amount of two lakhs or more in cash from any person in one day or in relation to particular transaction or in any event except some organisations. |
No change | No change |
| 26 | Time limit for Filing of original return & revised return ( Sec 139) - Return filed under section 139(1) is original return and if any alteration is needed in it and then such revision is done under section 139(5). | No Change | No Change | The earlier time limits has been done away with. Now, the Revised return can be filed upto the end of relevent A.Y. | No change | No change | |
| 27 | Belated return - As per law, belated return is nothing but a late return. | No Change | No change | Now, belated return can also be revised i.e. earlier belated return can not be revised but now it can be revised. | No change | No change | No change |
| 28 | Section 80EEA - Tax Benefit of Interest on Home Loan (First Time Home Buyers) | No Such Section | No Such Section | No Such Section | No Such Section | No Such Section | Deduction of interest payment on home loan is provided under this new section subject to some conditions. The maximum amount of deduction available is Rs. 1,50,000. This shall be in addition to exisiting interest deduction of Rs. 2 lakh u/s 24. Given below are the conditions : --Value of house upto 45 lakh --Assessee cannot claim deduction u/s 80EE --Loan should be taken between 01 April, 2019 - 31 March, 2020 --Loan must be taken from a financial institution |
| 29 | Section 80EEB - Tax Benefit of Interest on Electric Vehicle Loan | No Such Section | No Such Section | No Such Section | No Such Section | No Such Section | A new section has been introduced in respect of deduction of interest payment on loan taken to purchase electric vehichle shall be provided under this section provided loan should be sanctioned between 01 April, 2019 to 31 March, 2023. The maximum deduction available under this section is Rs. 1,50,000. Loan must be taken from a financial institution. |
| Other important changes | |||||||
| 1 | Wealth Tax - It is a tax levied on wealth of an individual. | No change | Wealth Tax has been abolished w.e.f. Financial Year 2015-16 and onwards | No change | No change | ||
| 2 | Corporate Tax Rate - It is the rate at which a domestic company has to pay tax. | No change | No change | Corporate Tax rate was reduced from 30% to 29% (plus Surcharge and Cess as applicable) for domestic companies having turnover or gross receipts less than Rs.5 Crores in Financial Year 2014-15.Therefore, for large corporates the tax rate is still 30% but for MSME it has been reduced to 29%. | Corporate Tax rate was reduced from 29% to 25% (plus Surcharge and Cess as applicable) for domestic companies having turnover or gross receipts less than Rs.50 Crores in the last year i.e. in Financial Year 2015-16.Therefore, for large corporates the tax rate is still 30% but for MSME it has been reduced to 25%. | Corporate Tax rate was reduced from 29% to 25% (plus Surcharge and Cess as applicable) for domestic companies having turnover or gross receipts less than Rs.250 Crores in the last year i.e. in Financial Year 2016-17.Therefore, for large corporates the tax rate is still 30% but for MSME it has been reduced to 25%. | The government reduced the corporate tax rate to 22% from 30% for existing companies, and to 15% from 25% for new manufacturing companies. ( this change was done in september 2019) |
| 3 | Dividend - It is a sum of money paid mostly annually by a company to its shareholders out of its profits (or reserves). | No change | No change | Dividend on Shares in excess of Rs.10 Lakh was brought into the ambit of Tax i.e. dividend over and above Rs. 10 lakh would be taxable. | No change | No change | No change |
| 4 | Section 40A(3) - It disallows certain expenses which are made in cash. | No change | No change | No change | The threshold limit under Section 40A(3) for making cash payment was reduced from Rs.20,000 to Rs.10,000. | No change | No change |
| 5 | Section 44AD - It is a presumptive scheme for small businessman. | No change | No change | The limit of turnover for the purpose of applicability of section 44AD has been raised from 1 crore to 2 crore. | In order to promote digital transactions, the presumptive income under Section 44AD shall be deemed to be 6% (instead of 8%) in respect of amount received through banking channel during the previous year. | No change | No change |
