Page 43 - Insurance Times August 2019

Union Finance Budget 2019

ON THE

RIGHT

PATH

T he Union Budget presented by the Honorable Y The rich and super rich with an income of Rs 2.5 crores,

the surcharge stands increased from 15 to 25%, which
Union Finance Minister in the Parliament on July
means an effective tax rate of 39% as opposed to
5 2019 is in the mould of Reform and Perform
and in the right path shown by the respected
Prime Minister. 35.9%.
Y This means that these people will pay a tax of Rs 95.06
lacs as against the present figure of Rs 87.45 lacs-a
As professionals from the life insurance industry, it is in our higher outgo of Rs 7.6 lacs.
capacity to look for avenues and opportunities - direct or
indirect - and utilize them for boosting up our new business. Y Those with an income of Rs 5 crores and more, the
surcharge rate is 37% from the present 15% with an
Salient eeatures of the Budget effective tax rate of 42.7%, again meaning that they will
Y Up to Rs 5 lacs taxable income per year after all pay Rs 2.32 crores from Rs 1.95 crores for an annual
deductions, there is no income tax. income of Rs 5.5 crores- a net increase of Rs 37.32 lacs.

Y Actually, up to a taxable income of Rs 2 crores, there is Y Those buying affordable housing can save some tax.
no significant change and the tax rates remain largely Interest on a loan taken by a first time buyer to
unchanged. purchase a house valued at Rs 45 lacs, will qualify for
an additional deduction of up to Rs 1.5 lacs, raising the
About the author total deduction available from Rs 2 lacs to Rs 3.5 lacs,
for a self-occupied house. This purchase should be
within the period from April 2019 to March 2020.
R Venugopal
Retired Executive Director Y Tax deduction up to Rs 1.5 lacs introduced for interest
LIC of India on loan taken during the period April 2019 to March
2020 for purchase of an Electric Vehicle.

The Insurance Times, August 2019 43