Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Budget 2019: Impact on the Common Man in India

Budget comes with various changes which has an impact on common man. Some of them are impact of Budget on real estate, hike in petrol price. Click here for more details.

  • Oct 01, 2019

Budget 2019 introduced various changes, which have an impact on the citizens of India.The important announcements are discussed below.

Home loan benefit for affordable housing

There is an efficient impact of Budget on real estate in the country. Affordable housing is an important project by the Government of India and the Budget has provided impetus to it. Home loan borrowers can now avail of an extra deduction amounting to INR 1.5 lakh annually on the interest payment, provided, the home loan has been borrowed by the end of March 2020 and applied for the purchase of a home that is valued less than INR 45 lakh. The benefit will be in addition to the benefit of INR 2 lakh given under Section 24 of the income Tax Act, 1961. This means that loan borrowers can get an exemption of approximately INR 3.5 lakh in a financial year.

No tax for individuals with an Income below INR 5 lakh

The biggest impact of the Budget is the rebate of 100% amounting to INR 12,500 under Section 87A. This applies to those with a yearly income up to INR 5 lakh. Individuals with a taxable income up to INR 5 lakh or less will not be liable to pay any tax. If there is a Tax Deducted at Source (TDS) in case of salaried employees, they will receive a refund for the income tax deduction on salary.

Incentives for National Pension System (NPS) subscribers

NPS has offered additional incentives for investors. The exemption limit is hiked from 40% to 60% of the total corpus. The central government has hiked the employer’s contribution from 10% to 14%. It also offers further tax relief in case of Tier 2 NPS investments made by the employees of the central government.

Tax exemption for an electric vehicle purchase loan

The Budget provided an incentive for individuals who are planning to invest in electric vehicles. There is a tax deduction amounting to INR 1.5 lakh on the loans, which are used for the purchase of electric vehicles and it can generate benefits amounting to INR 2.5 lakh for the borrower. This is an important income tax deduction that will have a significant impact on the purchase of such vehicles.

Hike in petrol and diesel prices

This amendment will have a huge impact on residents of the country. The cess on fuel will lead to a hike in petrol price and diesel costs by INR 1 per liter. It will thus result in a hike in fuel rates across the nation. According to the announcement, the lowering of crude prices across the world has allowed raising the cess on fuel

Hike in the surcharge for high-income individuals

Wealthy Individuals who earn a very high income will have to pay more tax. The Budget has proposed to increase the surcharge on taxpayers’ earnings from INR 2 crore up to INR 5 crore to 3% and for taxpayers earning more than INR 5 crore to 7%. There are no specific changes in tax slab applicable to the citizens. This is only a change in the surcharge.

TDS on cash withdrawal transactions exceeding INR 1 crore

In an attempt to cut down cash transactions in the country, the Budget has proposed a 2% TDS on cash withdrawals if the amount drawn from a bank account exceeds INR 1 crore in a year. In addition, the Budget has also given a boost to online payments like Aadhaar Pay, Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT), Unified Payments Interface (UPI), and debit cards by removing the merchant discounts for merchants and customers. This facilitates individuals to make quick and convenient digital payments at a low cost.

Improvement in tax filing systems

A key announcement of the Budget 2019 India was the interchangeability of PAN and Aadhaar with regard to income tax filing. This makes it convenient for those who do not
hold PAN or Aadhaar, as they can easily file an income tax return (ITR) without any trouble. The bigger implication of the announcement is yet to be elaborated upon with concerning other financial institutions. The announcement also stated other amendments in the filing process like the introduction of ITR forms, a random selection of scrutiny cases, and aceless e-assessment. These amendments can make the entire process of ITR filing much easier for individuals.

Gold to become more expensive

The custom duty applicable to gold and has been raised to 12.5% from 10%, thereby making gold even more expensive.

It is important to note that there are no changes in tax rates. However, these amendments will have a strong impact on the citizens of the country. It will help improve the tax filing system and hence, make it and convenient for individuals to file their returns. Additionally, the incentives on home loan and NPS will also lead to an increase in savings.

Read Here for More Related Articles:

Download Brochure


  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999


Download Brochure


  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Union Budget 2023 and Tax Exemptions on Life Insurance Premium Over ₹5 Lakhs

How can I get Form 16B from traces?

What is Rule 132 of Income Tax? How Does it Affect You?

9 Income Tax Myths That Could Cost You Money while Filing returns

Section 80C Deductions as per Income Tax Act, 1961

What is TDS (Tax Collected at Source)? A comprehensive guide

How to create wealth through a savings plan?

List of Important Income Tax FAQs

Is PF Withdrawal Taxable for NRI?

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

All about TDS on Salary under Section 192 – Kotak Life

What are Deferred Savings Plans?

प्रधानमंत्री सुरक्षा बीमा योजना

Guaranteed Return Plans-Why is it a must for you?

Investing Lump Sum Amount

Income Tax Deduction Under Section 80CCC In India

इनकम टैक्स रिटर्न कैसे फाइल करें?

Tax Planning and Tax Benefits of Life Insurance

Types of Riders in Insurance Policy

What is the Difference Direct Tax and Indirect Tax

Difference Between Gross Income & Total Income in Calculating Income Tax

What is the difference between TDS and TCS?

What is Form 16A?

Maximize Your Savings: Tax Tips for Salaries Above ₹20 Lakhs

What is the Difference between Assessment Year (AY) and Financial Year (FY)?

What is better - Guaranteed Savings Plan or Fixed Deposit?

Financial Planning and Best investment options for Housewives

Top 8 Tax-Saving Methods in India- Budget Planning

Tax Rate Chart for FY 2022-2023: What is TDS Slab?

Best Savings plan for the middle class in India

आयकर स्लैब 2021-2022

Income Tax Filing For NRI in India

How to Check Income Tax Refund Status Online in India

Basics of Guaranteed Savings Plan

All You Need To Know About Assured Savings Plan

What Investment Options Come with Tax Incentives?

Difference Between Guaranteed and Assured Returns

What is Salary Protection Insurance and Why You Need It

What is TDS Slab?

Income Tax Benefits for Doctors

Who Should Invest In Savings Plan

Types of Income Tax Return (ITR) Forms

Have You Considered Term Insurance a Part of Your Tax Planning?

Tax Saving Options other than Section 80C

What is TDS Exemption Limit?

Tax Benefits of ULIP Plans Available for NRIs

How much gold can you keep at home? Limits and income tax rules explained

Personal Finance - How to Deal with Emergencies When Preparing Finances

How to File Form 16 for Salaried Employees?

Do Beneficiaries Pay Taxes on Life Insurance?

Income Tax Exemption for Physically Handicapped Dependent

How to save tax for salaried person?

What is Section 80C Deduction?

How To Save Tax Better with 80C

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

How to create a savings plan and make good investment choices

Interest Imposed Under Sections 234A, 234B and 234C

How to e file ITR on Income Tax Government Portal

How Do Assured Savings Plans Work and Why You Should Consider One?

Highlights of the Union Budget 2023-24

How to View 26AS and Download Form 26AS Online

How to File Income Tax Return for First Time Tax Payers

Income Tax Calculator: How Life Insurance Policies are Taxed? Explained

What is the Percentage of Tax Deducted at Source (TDS)?

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

How Should I Allocate A Monthly Savings Plan For Long-Term Benefits?

How to File TDS Return?

Difference between Section 80C, 80CCC, 80CCD & 80D

What is the TDS Rate on Salary?

How to Download Form 16?

What is indirect tax and its types?

What is Section 80C Deduction Limit?

Tax Benefits for Startups in India

How to Claim a Tax Refund?

What is an Endowment Plan?

How to Save Tax on Salary Arrears?

How To Save Tax Using Life Insurance?

Tax-Savings Investments and Options in India

What are Direct Taxes? How to Avoid being Overtaxed?

5 Popular Tax-Saving Schemes in India

How to Save Income Tax with Insurance

How Much Money This Budget 2019 Can Help You Save

TDS Due Dates of FY 2022-23 For Return Filing

How can NRIs prevent double taxation in India?

What is Section 80C - Explained in Detail

All you need to know About Tax on Inheritance

Things to Do After Filing Income Tax Returns

Save Income Tax by 31st March: Here Is a Checklist

Should you prefer a Guaranteed Savings plan over monthly income schemes?

भारत में महिलाओं के लिए सरकारी योजना

Why Tax Planning Should Be an All-year Round Activity

3 Tips to Buy Guaranteed Savings Plan

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

स्रोत पर कर कटौती (टीडीएस) क्या है?

What is capital gains tax, and how it works?

How to File Income Tax Return - Everything You Need to Know

Sub-sections Under Section 80C of the Income Tax Act, 1961

What are the Different Types of Taxes in India?

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

What is EEE in income tax? 5 tax-free investment options to become crorepat

How to File Form 10E for Tax Relief on Salary Arrears?

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Why January Is an Important Month for Saving Tax?

Impact of GST on Life Insurance in India

What is the Maximum Maturity Benefit in Assured Savings Plans?

Tax Benefit of Investing in Term Plan

What is TDS Refund Process?

What is a savings plan?

How to File ITR Online

Tax-Free Income in India

What is ITR & How to File Income Tax Return?

What Is Advance Tax and How Is It Calculated?

Tax Season is Coming- Know How to Save Tax

Saving Income tax in 2017 - 18

TDS rules on the sale of jointly owned property

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

Are Financial Planning and Tax Planning the Same Thing?

Section 44AD of Income Tax Act for AY 2021-22

How Inflation Affects Savings and Investment?

Tax Saving Options for Salaried Employees

Tax Saving Guide for 2019-20

Section 80E: Tax Exemption on Interest on Education Loan

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

How to E-Verify ITR: A Step-by-Step Guide to Electronically Verify your Income Tax Return

Financial Benefits and Government Schemes Every Woman in India Should Know

हाउस रेंट अलाउंस क्या है और इसके छूट की गणना कैसे की जाती है?

Tax Structure in India

Penalty For Late Filing TDS Return

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

What is Section 10D of the Income Tax Act?

What is ITR 5 Form and How to File ITR 5?

Why is Form 16 Important?

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

Problems People Face with Tax Returns after a Job Change

Tax Saving for Self Employed in India

What is Tax Evasion, and What are the Penalties for Tax Evasion in India?

Income Tax Deductions for Disabled Persons Under Section 80U

How to Check Income Tax Returns Status Onine?

When Should TDS be Deducted and Who is Liable to Deduct it?

Guide for Tax Calculation on your Salary

How to Get Form 16?

How To Invest In Guaranteed Return Plans For Higher Returns And Financial Security?

What is Form 16B?

How to Calculate returns on an assured savings plan?

Tips to plan your savings in 2022

E-Filing of Income Tax Returns in India

Income Tax Exemption for Disabled

How to Check Income Tax Refund Status Online in India

Money Saving Tips for Single Women

Complete Savings Plan for Low Income Earners

Invest in Tax-Free Bonds: Understanding the Benefits and Who can Invest?

How to file Form 16 online?

Presumptive Taxation for Business and Profession

All about TDS Payment Online & Due Dates

A Complete Guide for Filing ITR 3 Form

Pradhan Mantri Suraksha Bima Yojana

A Comprehensive Guide to Understand the ITR 7 Form

Union Budget 2023: Impact on Life Insurance

Importance of Savings Plan You Need to Know

Home Investment Plan to Buy Dream Home

Why PAN Card is Essential for Income Tax Filing?

What is Tax Deduction at Source (TDS)?

Tax Deductions You MUST Know

Insurance and Endowment: Everything You Need to Know!

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

धारा 80डी आयकर अधिनियम, 1961

Income Tax Effects on Salary Deductions in the Union Budget 2023

Post Office Savings Scheme - All You Need to Know

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

What is Form 26AS - All You Need To Know

Should one prefer a guaranteed savings plan over monthly income schemes?

What is Section 80CCC of the Income Tax Act 1961

How to Boost Your Savings with Guaranteed Results

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

What is the Difference between Form 16 and Form 16A?

12 Tax Changes in Budget 2022 that May Impact Your Personal Financial Planning

How to Pay Advance Tax Online in India

Income Tax Filing Using Multiple Form 16

Personal Finance - Meaning, Importance, and Tips for Personal Finance

9 Unusual Investments you Didn't Know for Saving Taxes in India

ITR 2 Form – Complete Guide

Key Changes of the Union Budget 2023 You Must Know

Understand ITR4 Form: How to Fill, Structure & Determine Your Eligibility

Understanding Tax Exemptions in ULIP (Old and New)

Tax Exemption and Scope of Coverage

Challan 280 - How to Use Challan 280 to Pay Income Tax

All You Need to Know About Section 80C

Tax Planning Tips for a Newly Married Couple

Saving Plans to Give Children a Debt-free College Education

Plan your Daughter's Wedding With Best Monthly Savings Plan

How to View 26AS and Download Form 26AS Online?

ITR-6: Guide to filing ITR-6 Form online

ITR 1: Sahaj Form

Easy ways to make personal savings plans

Form 16, Form 16A, and Form 16B?

How to File Income Tax Return without Form 16

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Section 16 of the Income Tax Act (ITA), 1961

Section 80G of the Income Tax Act

धारा 80सी आयकर अधिनियम, 1961

8 Things to Help You Select a Savings Investment plan

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Income Tax Deductions Under Section 80C

What To Do If Your TDS Is Not Deposited With The Government?