They say in this world nothing is certain but death and taxes. And let’s just add to that the Budget announcements. Besides, death and taxes, even that is very certain with many alterations. 2019 budget has been doing the rounds lately. Now, saying that you use HR software or a payroll software, isn’t a good excuse. Being an HR you anyway should be aware of these little but impactful changes.
So, just like every year, some are going to benefit a lot and some… well… keep reading the blog to find out for yourself if Mr. Piyush Goyal has been kind enough.
Most Important Changes in budget 2019
- Full tax rebate to people earning up to 5 lacs annually after all deductions. This is really going to save a lot of employees from making investment declarations and doing the hustle and bustle.
- If your salary is anywhere above 5 lacs to 6.5 lacs can save themselves from paying taxes if they invest in prescribed equities and provident funds.
- The standard deduction has increased by 10,000. It has risen from 40,000 to 50,000. Undoubtedly, a great relief on the tax payment amount.
- Now, the tax is exempted if one owns a second self-occupied house. Isn’t that so very good?
- Benefits given to unsold inventory has increased to 1-2 years. This year’s budget actually seems to be going in the Janta’s favor.
- The tax exemption Gratuity limit has been increased from 10 lacs to 20 lacs.
- The bonus will be applicable to workers earning up to 21,000 monthly. Earlier, this wage threshold was 10,000. This amendment turns out to be in the welfare of employees.
- 26 weeks of maternity leave to empower women and make it easy for mothers to continue their career without any break.
Other important changes and extensions
- Ceiling limit of TDS under section 194A has been raised from 10,000 to 40,000.
- Ceiling limit under section 194I has also been increased from 1,80,000 to 2,40,000.
- Capital Tax Benefit under section 54 has also surged from one residential house to two. This exemption is available to up to 2 crores.
- The benefit under section 80IB has escalated to up to a year more, i.e 2020.
Here is what will give you a real sigh of relief
- In the span of 2 years, Government is aiming to do Tax Assessment electronically. This is indeed going to help employees, employer and everyone else a lot.
- Income Tax Returns will be processed in just 24 hours. This indeed will be a great relief.
Our HR software is well in sync with the 2019 budget. We hope the one you are using is up and running and updated with the latest changes in the Budget. However, if your company is doing it manually in the excel sheet or with paper and pen, this is surely going to be troublesome for you. Now is the time to take the right decision. Either keep committing mistakes and then waste time in correcting them or schedule a demo with HR-One to see the magic of automation for yourself.
Don’t forget to tell us in the comments your opinion on the 2019 budget. Is it a hit or a miss?