Highlights of interim budget 2019-2020

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interim budget 2019-2020

Budget has come out, i am going to give you gist of what was discussed in this interim budget. This budget is for first half of 2019-2020. Post-election there will be another budget for the second half.

Tax Benefits

  • Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate.
  • Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities.
  • Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.
  • TDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees.
  • “Around 3 crore middle-class taxpayers will get tax exemption due to this measure,” the finance minister said.
  • Gratuity limit increased from 10 lakhs to 30 lakh rupees.
  • Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 2 crore rupees; can be exercised once in a lifetime.
  • Benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-2020.
  • Within almost two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by tax officials.
  • “We are poised to become a 5 trillion-dollar economy in the next five years, we aspire to become a 10 trillion-dollar economy in the next eight years,” Goyal said.

GST

  • Businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns.
  • Two per cent interest subvention on loan of 1 crore for GST registered MSME units.
  • Direct tax collections from 6.38 lakh crore rupees in 2013-14 to almost 12 lakh crore rupees; tax base up from Rs 3.79 crore to Rs 6.85 crore. 99.54% returns have been accepted without any scrutiny. In January 2019, GST collections has crossed 1 lakh crore rupees.
  • GST has been continuously reduced, resulting in relief of 80,000 crore rupees to consumers; most items of daily use for poor and middle class are now in the 0%-5% tax bracket.
  • GST is the undoubtedly the biggest taxation reform implemented since Independence; through tax consolidation, India became one common market; inter-state movements became faster through e-way bills, improving Ease of Doing Business.
  • “We controlled double-digit inflation. Inflation is a hidden and unfair tax; from 10.1% during 2009-14, inflation in December 2018 was just 2.1%. We have broken the back of back-breaking inflation,” Goyal said.
  • Fiscal deficit has been bought down to 3.4%; CAD (current account deficit) likely to be 2.5% of GDP this year

Other

  • “Cost of data and voice calls in India is now possibly the lowest in the world; mobile and mobile part manufacturing companies have increased from 2 to 268,” he said.
  • Single window clearance for filmmaking to be made available to Indian filmmakers, anit-camcording provision to be introduced to Cinematography Act to combat film privacy.
  • Allocation for North Eastern region proposed to be increased to Rs 58,166 crore in this year a rise of over 21% from the previous year.
  • Increased allocation for Rashtriya Gokul Mission to 750 crore in current year.
  • “Urgent action needed to increase hydrocarbon production to decrease imports; change in bidding procedure and exploration procedure being implemented,” Goyal added.
  • Committee under NITI Aayog to be set up to identify and de-notify nomadic and semi-nomadic communities; Welfare Development Board to be set up under Ministry of Social Justice and Empowerment for welfare of these hard-to-reach communities and for tailored strategic interventions.
  • To ensure cleaner fuel and health assurance, we embarked upon Pradhan Mantri Ujjwala Yojana, a Programme to give 8 crore free LPG connections to rural households, 6 crore connections have been given already
  • Domestic air traffic doubled in the last 5 years
  • Over 90 percent of the country has been covered under sanitation coverage. People have made this a social revolution and I thank the 130 people of the country. More than 5.45 lakh villages have been declared Open Defecation Free
  • Ayushman Bharat the world’s largest healthcare Programme was launched to provide medical care to almost 50 crore people, resulting in 3,000 crore savings by poor families
  • Lower costs of Stents & Knee implants have benefitted people. Government has announced 14 new AIIMS since 2014

Pension

  • Mega Pension Yojana, namely Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.
  • “(This) will benefit 10 crore workers in unorganized sector, may become the world’s biggest pension scheme for unorganized sector in five years,” Goyal said.

Farmers

  • Two per cent interest subvention to farmers pursuing animal husbandry and fisheries.
  • Under Pradhan Mantri Kisan Samman Nidhi, 6000 rupees per year for each farmer, in three installments, to be transferred directly to farmers’ bank accounts, for farmers with less than 2 hectares’ land holding.
  • This initiative is likely to benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore.

Defense Budget

  • Govt increases defense budget to over Rs 3 lakh crore. Govt will provide additional funds for Defense, if needed.
  • We have disbursed 35,000 crore rupees under #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 record Rs 1.6 lakh crore
  • Today there is not a single unmanned railway crossing on the broad gauge in India.

Stock market has shown positive affect of this budget. And the experts say it is a visionary budget. A detailed summary is on its way of this budget so keep your notification on.

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