This report covers some of the key tax proposals affecting individuals in India’s Interim Budget.
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On 1 February 2018, India’s Finance Minister presented the Interim Union Budget 2019 with a nod to the general elections, which are scheduled later this year.1 The Interim Union Budget 2019 aims to provide benefits to middle-class taxpayers, especially salary earners, pensioners, and senior citizens. Some of the key tax proposals affecting individuals are highlighted below.2 (For coverage of last year’s budget, see GMS Flash Alert 2018-049, 14 March 2018.)
To some extent, taxpayers subject to Indian tax law may see their tax burdens lightened by the measures in this Budget. However, it is important to note that the impact of the Budget measures on individuals will depend on each taxpayer’s particular set of circumstances. In those cases where an assignee’s tax burden decreases due to changes in India’s tax law, the employer’s international assignment-related costs could fall accordingly, and vice-versa.
The Budget changes could impact international assignment cost projections and budgeting. Payroll departments should be prepared to make necessary adjustments.
[INR 1 = EUR 0.0124 | INR 1 = USD 0.014 | INR 1 = GBP 0.011 | INR 1 = AUD]
This Interim Budget is different from full budgets, which we have reported on in the past. The government unveiled this budget as an “Interim Budget” because it is considered an outgoing government since elections will be taking place in the April-May 2019 timeframe. A full budget will be unveiled by the new government that will assume the reins of power following the elections.
For more publications, webinars, and other materials on the Interim Budget 2019, published by the KPMG International member firm in India, click here.
1 For the budget speech and related budget documents on the Ministry of Finance Web site, click here.
2 This article is excerpted, with permission, from “India Interim Budget 2019,” in Tax Flash News (1 February 2019), a publication of the KPMG International member firm in India.
The information contained in this newsletter was submitted by the KPMG International member firm in India.
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