Financial Budget 2019 has been announced and it couldn’t be more middle-class-friendly. The budget has touched and stressed upon major pain points of the fastest-growing economy of the world.
The acting Finance Minister Piyush Goyal gifted the nation with pretty amazing monetary benefits along with addressing the issues for rural India. A direct cash transfer plan for poor farmers and a remarkable pension plan for unorganized sector workers.
With this budget, the middle-class comes back into power with full tax rebate for people earning up to Rs 5 lakh. The budget also featured an elevation in “standard deduction” to Rs 50,000 from Rs 40,000 annually. In addition to this, he also increased the income tax exemption on bank deposit interests to Rs 40,000 from Rs 10,000 currently.
He also deliberately publicized all of Modi government’s economic and reform policies, with details of leading achievements like Pradhan Mantri Jan Ausadhi Yojana, Make in India, Jan Dhan Scheme, Start-Up India, MUDRA and the Insolvency and Bankruptcy Code (IBC).
HIGHLIGHTS OF BUDGET 2019
Tax
- Within 2 years, Tax assessment will be done electronically
- IT returns processing in just 24 hours
- Minimum 14% revenue of GST to states by Central Govt.
- Customs duty has abolished from 36 Capital Goods
- Recommendations to GST council for reducing GST rates for home buyers
- Full Tax rebate up to 5 lakh annual income after all deductions.
- Standard deduction has increased from 40000 to 50000
- Exempt on tax on second self-occupied house
- Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000
- Ceiling Limit of TDS u/s 194I has increased from 180000 to 240000
- Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses.
- Benefit u/s 80IB has increased to one more year i.e. 2020
- Benefit has given to unsold inventory has increased to one year to two years.
Other Areas
- State share has increased to 42%
- PCA restriction has abolished from 3 major banks
- 2 lakhs seats will increase for the reservation of 10%
- 60000 crores for MANREGA
- 1.7 Lakh crore to ensure food for all
- 22nd AIIMS has to be opened in Haryana
- Approval has to be given to PM Kisan Yojana
- Rs. 6000 per annum has to be given to every farmer having up to 2-hectare land. Applicable from Sept 2018. The amount will be transferred in 3 installments
- National Kamdhenu Ayog for cows. Rs. 750 crores for National Gokul Mission
- 2% interest subvention for farmers pursuing animal husbandry and also create a separate department for fisheries.
- 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
- Tax-free Gratuity limit increase to 20 Lakhs from 10 Lakhs
- A bonus will be applicable to workers earning 21000 monthly
- The scheme, called Pradhan Mantri Shram Yogi Mandhan, will provide assured monthly pension of Rs. 3,000 with a contribution of Rs. 100 per month for workers in the unorganized sector after 60 years of age.
- Our government delivered 6 crores free LPG connections under Ujjawala scheme
- 2% interest relief for MSME GST registered person
- 26 weeks of Maternity Leaves to empower the women
- More than 3 Lakhs crores for defense
- One lakh digital villages in next 5 years
- Single window for approval of India filmmakers
