Nirmala Sitharaman announced some major changes in income tax provisions in Budget 2019. She even said that Aadhaar and PAN would be made interchangeable.
The government announced additional income tax deduction of ₹1.5 lakh on interest paid on home loans taken for affordable housing costing below ₹45 lakh. It also announced ₹1.5 lakh income tax deduction on interest paid on loans for the purchase of electric vehicles. Finance Minister also proposed to levy TDS of 2% on cash withdrawal exceeding ₹1 crore a year from a bank account.
The government introduced 25% surcharge for those with a taxable income of ₹2-5 crore and 37% surcharge on taxable income exceeding ₹5 crore. Currently, the government imposes 10% surcharge where total income is between ₹50 lakh and ₹1 crore, and 15% on income above ₹1 crore. Individuals with income over ₹10 lakh fall under the highest tax slab of 30%.
In other changes, the government proposed that persons who enter into certain high value transactions have to mandatorily file their tax returns even if their taxable limit is less than ₹2.5 lakh.
The transactions include depositing an amount exceeding ₹1 crore one or more current accounts; has incurred expenditure of more than ₹2 lakh for himself or any other person for travel to a foreign country; or has incurred expenditure of an amount or aggregate of the amounts exceeding ₹1 lakh towards consumption of electricity.