Changes in Income Tax Rules for F.Y. 2019-20(A.Y. 2020-21)

1. Standard Deduction raised for Salaried & Pensioners from Rs 40,000 to Rs 50,000

1. Rebate under Section 87A changed from Rs 2,500 to Rs 12,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs (from Rs 3.5 Lakhs)

1. Increased Tax for super-rich: Surcharge increased to 25% for income between 2 to 5 crore & to 37% for income beyond Rs 5 crores

1. Additional Tax Deduction of Rs 1.5 lakhs u/s 80EEA on home loans on purchase of affordable home

1. Additional Tax Deduction of Rs 1.5 lakhs u/s 80EEB on Auto loans on purchase of Electric vehicles

1. No Tax on Notional Rental Income from Second House

1. Capital gains exemption on reinvestment in two house properties: Tax payers can now buy two houses on sale of 1 house if the capital gains are less than Rs 2 crore. This benefit can be availed only once in lifetime

1. TDS threshold increased from Rs 10,000 to Rs 40,000 on Bank Interest Income

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