The changes related to income tax in the budget are generally applicable from 1 April, but this time these changes will come into effect from 1 September. This time the full budget for the financial year 2019-20 was presented in July after the general election, due to which various changes related to income tax in the budget will come into effect from September 1. The taxpayer must be aware of these changes. Let us tell you what are the main changes related to income tax.
If the amount of life insurance maturity you get is taxable, then TDS will be deducted at the rate of 5 percent on the net income portion. Net income is the amount received by subtracting the total insurance premium payment from the total amount received.
TDS levy will be levied on September 1 for a total cash withdrawal of more than one crore in a year from a bank, co-operative bank or post office account. The government has taken this step with a view to discourage the withdrawal of large amounts of cash and promote the cashless Economy.
Now, if you buy a property, then expenses on other facilities like car parking, electric water supply and club membership will also come under TDS.
From September 1, if a person or a Hindu undivided family makes a total payment of more than 50 lakhs to contractors or professionals in a year, then TDS will be deducted at the rate of 5 percent.
According to the announcement of the full budget presented in July, if the pen card is not linked to Aadhaar by the scheduled time, it will be considered invalid. This means that if someone's pen is not valid, it will be treated like the same person who does not have a pen card card.
