Budget highlights - A Reason To Smile For Middle Class! Union Budget 2019
UNION BUDGET-2019
Acting finance minister Piyush Goyal on Friday presented the much awaited Union Budget-2019 in Lok Sabha. He is appointed as finance minister in the absence of Arun Jaitley as he is undergoing treatment in the US. This interim budget has given a reason to smile for the middle-class family as the government has given a full tax rebate to Individual taxpayers who have an annual income of Rs 5 lac.
Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make an investment in tax saving scheme.
Since this is a rebate and not a slab change, it will not impact the tax incidence who has larger incomes. Those who have salaries are under Rs 10 lakh can add home loans and tuition fees to get additional benefits.
Not only for the middle-class government has tried to give some relief to farmers as well. An assured income of Rs 6000 has been announced for small and marginal farmers who had up 2 hectares of lands.
Here are the key highlights of the Union Budget-2019:-
Income tax relief and exemptions:
- No tax for those whose taxable income is less than Rs 5 lakh.
- Standard deduction increased to Rs 50,000 from Rs 40,000 for salaried class.
- TDS threshold for home rent increased from Rs 1.8 lakh to 2.4 lakh.
- Interest income up to Rs 40,000 in post offices and banks made tax free.
- Income Tax returns to be processed within 24 hours and refunds will be paid immediately.
- Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.
- Gratuity limit increased from 10 lakh to 30 lakh rupees.
What for farmers in this budget?
- Rs 6,000 per year assured income support for small and marginal farmers.
- Farmers having up to 2 hectare of lands will get Rs 6,000 per year in three equal installments. The scheme will be effective from December 1, 2018.
- Interest subsidy for farm loan takers: Farmers affected by natural calamities to get 2% interest subsidy and an additional 3% interest subsidy upon timely repayment.
- 2% interest subsidy to farmers who animal husbandry, fisheries jobs through Kisaan credit cards.
- Kamdhenu scheme for animal husbandry.
Goods and Services Tax(GST):
- Group of Ministers to suggest ways to reduce GST for house buyers.
- Direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore; The tax base is up from Rs 3.79 crore to 6.85 crores.
- Businesses with less than Rs 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to file quarterly returns.
- Indian Customs to fully digitized exim transactions and leverage RFID for logistic. Govt abolishes duties on 36 capital goods.
- GST collections in January 2019 has crossed Rs 1 lakh crore.
Sops for workers:
- Rs 3,000 per year pension for unorganized sector workers.
- New Pradhan Mantri Shram Yogi Maandhan Yojana for unorganized sector workers with income up to Rs 15,000 per month. Beneficiaries will get Rs 3,000 per month pension with a contribution of Rs 100 per month after retirement. Govt allocates Rs 500 crore for the scheme.
- Gratuity limit increased for workers to Rs 30 lakh.
Rural Allocations:
- Rs 60,000 crore for MNREGA
- Rs 19,000 allocated for construction of rural roads under Gram Sadak Yojana.
Defence Budget:
- Govt increases defence budget to over Rs 3 lakh crore. Govt will provide additional funds for Defence if needed.
- We have disbursed 35,000 crore rupees under the #OROP scheme in the last few years.
Railways:
- Railway's operating ratio seen 96.2% in FY19 Vs 95% FY20.
- Railway capex for FY20 set at a record Rs 1.6 lakh crore.
- Today there is not a single unmanned railway crossing on the broad gauge in India.
Some Other Important Declarations:
- Govt to build 1 lakh digital villages.
- For the welfare of farmers and for doubling their income, a historic decision was taken to increase MSP by 1.5 times the production cost for all 22 crops.
- To ensure cleaner fuel and health assurance, we embarked upon Pradhan Mantri Ujjwala Yojana, a programme to give 8 crores free LPG connections to rural households, 6 crore connections have been given already.
- India is poised to become a $5 trillion economy in the next 5 years, $10-trillion economy in the next eight years
- Committed to eliminating the scourge of black money; anti-black money measures taken have brought an undisclosed income of about 1.30 lakh crore rupees to the fore; 3.38 lakh shell companies were deregistered
- Growth in the last 5 years has been higher than that by any other govt. Spent Rs 2.6 lakh crore in a recap of PSU Banks
- Everybody will get an electricity connection in the near future. We have provided 143 crore electricity bulbs to the poor
- Ayushman Bharat, the world's largest healthcare programme, was launched to provide medical care to almost 50 crore people, resulting in Rs 3,000 crore savings by poor families
- Lower costs of Stents & Knee implants have benefited people. The government has announced 14 new AIIMS since 2014
- Loans worth Rs 7.23 lakh crore have been given under Mudra Yojana
- Monthly mobile data consumption has increased 50 times in the last 5 years; the cost of data and voice calls in India is possibly the lowest in the world
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