Surcharge on income tax increased and a Health and Education Cess applied, altering tax computation and reliefs.
Amendments for the financial year commencing 1 April 2019 revise income tax computation by substituting year references, restating Part I of the First Schedule with updated tax slabs and surcharge rates, and adding a Health and Education Cess at 4% on income tax plus surcharge. The First Schedule specifies surcharge bands across taxpayer classes and company types. Effective changes to sections 16, 23, 24, 54, 80 IBA, 87A, 194A and 194I modify rebates, allowable houses, deduction aggregation and caps, capital gains reinvestment options, and withholding thresholds. (AI Summary)