1.Tax Free for income up to 5 lacs
No tax for income up to 5lacs. But it is mandatory to file ITR if the total income of the taxpayer exceeds the minimum exemption limit. The tax rebate available under Section 87A of Income Tax Act has been raised from Rs 2,500 to Rs 12,500 FY 2019-20 onwards.
2. Standard deduction hiked to 50000
The standard deduction is increased to Rs50000 from Rs40000 salary. This deduction can be claimed by all salaried employees and pensioners at the time of filing ITR.
3. TDS limit rised
The tax deduction limit has increased so no TDS will be deducted for the interest income up to Rs 40,000 by the banks.
4. Zero tax for emptied second property
No need to pay taxes for the second houses that are lying vacant for FY20.
5. Capital gain tax exemption increased
The government has increased the capital gains tax exemption limit to Rs 2 crore. This can be availed only once in the taxpayer’s lifetime. People who sell their house property will now have the option to invest the long-term capital gains in two houses.