Recently the Finance Minister Mr.Piyush Goyal announced the much awaited Union Budget in the Lok Sabha, which has a lot in store for the middle-class group and little for the richer community. Here are the highlights of the rolled out interim budget 2019:
Reduction in tax slabs:
The main gain from the budget 2019, is the relaxation from tax burden for salaried and pensioners. Here’s a look at who gains and by how much:
- The proposed increase in standard deduction has increased from earlier Rs. 40,000 to Rs. 50, 000. Here’s who saves by how much in various income groups:
|Income Groups||Tax Saved|
|Income between Rs. 2.5 lakh and Rs. 5 lakh||Rs. 1040|
|Income between Rs. 5 lakh and Rs. 6 Lakh||Rs. 15, 080|
|Income between Rs. 6 lakh and Rs. 10 Lakh||Rs. 2080|
|Income above Rs. 10 Lakh||Rs. 3588|
- The bigger gainers are the individual payers earning upto 5 lakhs a year who are given a full tax rebate in the proposal. The finance minister said, “This measure will give an exemption to around 3 Crore middle-class taxpayers.”
- If you come under income range of up to 6.5 lakh rupees, you are exempted filling tax, if you have proper investments in equities or provident funds.
- Tax slabs for individuals with an income over 5 lakhs remain the same
- Tax on rent from second vacant houses has also been eliminated for house owners.
- Increase in the gratuity limit from Rs. 10 Lakh to Rs. 30 Lakh
Other key points to be noted:
- Under Section 80(i)BA – Benefits for all the housing projects will be extended for one more year till the end of 2019 -2020
- SME’s with almost Rs. Crore Annual turnover or less will be allowed to return quarterly returns
- There has been a significant reduction in the GST for poor or middle-class consumers. A relief of almost Rs. 80,000 Crore is given with daily use items falling under 0% to 5% tax bracket.
- MSME units are given 2% interest subvention on a loan of Rs. 1 Crore
- Rashtriya Gokul Mission gets Rs. 750 Crore allocation in the current year
- Increase in the hydrocarbon production to decrease imports
- Explorations processes are being reconnoitred and changes are being implemented in the bidding procedures
Benefits the country has witnessed so far:
- Since the implementation of the GST, India has become popular welcoming trades, has become one common market, inter-state movements have become faster, implementation of e-way bills has improved the ease of doing business.
- In the coming years, almost all the GST and IT returns will be verified automatically by anonymized tax systems without any intervention by tax officials.
- The data and voice calls are by far the lowest in the world
- The 4R approach has been implemented to ensure clean banking – Recognition, Resolution, Recapitalized, Reforms.
- Fiscal Deficit has been reduced to 3.4%, and CAD (current account deficit) is likely to be 2.5% of GDP in the current year
After the announcement of the budget, PM Narendra Modi said, “This is just a preview of the budget, which after the elections, will take India on the path of development. The plan of India is to become a 5 trillion dollar economy in the coming 5 years and almost 10 trillion dollar economy in the coming 8 years.”
By 2030, Finance Minister has set out a vision including infrastructure, employment, clean rivers, and pollution free nation.