A major boost to the middle-class taxpayers as government increases the exemption limit for income tax paid by individuals from the current Rs 2.5 lakh to Rs 5 lakh
With the Lok Sabha elections only a few months away, acting Finance Minister Piyush Goyal presented NDA government's Interim Budget on Friday with mega-tax reliefs and additional sops for the salaried class people.
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Finance Minister Piyush Goyal proposed that individuals with income up to Rs 5 lakh will not have to pay any income tax for FY2019-20. Which effectively means individuals who make investments of Rs 1 lakh 50 thousand in tax saving schemes will not be required to pay tax up to the gross income of Rs 6.5 lakh ( 5 lakh exemption announced + 1.5 lakh investment)
Key highlights of income tax proposals in Union Budget 2018-2019
- No tax for Individual taxpayers with annual income of up to Rs 5 lakh
- Individuals who make investments of Rs 1 lakh 50 thousand in tax saving schemes will not be required to pay tax up to a gross income of Rs 6.5 lakh ( 5 lakh + 1.5 lakh)
- Standard tax deduction for salaried persons raised to Rs 50,000 from Rs 40,000.
- TDS threshold on interest on bank and post office deposits has been raised from Rs 10,000 to Rs 40,000.
The anticipation of announcements from the interim budget as well as expectations of healthy quarterly results led the equity market to rally more than 1.65 per cent as a massive build-up of short positions was witnessed on Thursday. The market rise came on the day of F&O expiry and ahead of the interim budget which will be presented on February 1.
Union Budget 2019 Live Updates: 'Electricity for all to be a reality by March'
The politically-crucial interest subsidy for short term credit to farmers is likely to be a modest one in the vote-on-account which is to be presented by acting Finance Minister Piyush Goyal on Friday. As compared to two years ago in 2017-18, when this subsidy was Rs 20,339 crore, the subsidy is likely to be around Rs 18,000 crore, a fall of 11 per cent, informed sources said.
Key highlights from the Budget 2019:
- Income tax exemption limit raised to Rs 500,000.
- Inflation brought down from 10.1 per cent to 2.12 per cent under the NDA government.
- Almost 3 lakh crore has already been recovered in favour of banks and creditors, big defaulters have also not been spared by our government.
- More than 5000 villages open defecation free in India.
- Average monthly tax collection at Rs 97,100 crore per month
- 10 lakh people treated under Ayushman Bharat so far.
- India attracted USD 239 bn in FDI in last five years. Current Account Deficit is likely to be 2.5 pc of GDP this year. Fiscal deficit will be 3.4 per cent of GDP; Current Account Deficit to be 2.5 per cent of GDP.
- Small and marginal farmers to get assured income of Rs 6,000 per year
- Instead of rescheduling of crop loans, the farmers severely affected by natural calamities will get 2% interest subvention and additional 3% interest subvention upon timely repayment.
- Govt spent Rs 1.7 lakh crore to supply food grains at a cheaper price to poor in 2018-19 as against Rs 92,000 crore in 2013-14.
- 8 crores free LPG connection under Ujjwala. 6 crores out of 8 crores new LPG new connections already delivered.
- 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.
- GST has been continuously reduced resulting in relief of Rs 80,000 crore rupees to the consumers; Most items of daily use are now in the 0%-5% tax bracket.
- Cost of data, voice calls in India is now possibly lowest in the world; mobile and mobile part manufacturing companies have increased from 2 to 268
- Government to allocate Rs 60,000 crore for MNREGA scheme
- Assured monthly pension of Rs 3,000 rupees per month to workers in the unorganised sector after age 60. To avail scheme, the workers will have to contribute Rs 100 per month
GST
A Group of Ministers is examining how prospective house buyers can benefit under Goods & Services Tax (GST). The Finance Ministry has said that the total Gross GST Revenue collected in the month of January 2019 has today crossed Rs 1 lakh crore. This has been a significant improvement over the collection of Rs 94,725 crore during last month and Rs 89,825 crore during the same month last year.
Speaking at Post-Budget Press Conference. Watch Live https://t.co/p9Bc9ZwVPC
— Piyush Goyal (@PiyushGoyal) February 1, 2019
Presenting the budget for 2019-20 in the Lok Sabha, Goyal said, "We are moving towards realising New India by 2022." "We have got decisive mandate to continue structured reforms. We have reversed policy paralysis," he added. Prime Minister Narendra Modi-led government's sixth and final budget before the polls due by May is an interim budget or a 'Vote on Account'. Goyal stepped in as interim finance minister after Arun Jaitley had to fly to New York for medical treatment.
Budget reaction: RS Khurana, Managing Director of Mumbai Railway Vikas Corporation
BREAKING-- Mumbai railway has received enough funds to move ahead on planned Mumbai Urban Transport projects in today's budget. This is RS Khurana, Managing Director of Mumbai Railway Vikas Corporation. @MrvcLtd @mid_day #Budget2019 pic.twitter.com/u75IRV87vX
— Rajendra B. Aklekar (@rajtoday) February 1, 2019
Prime Minister Narendra Modi on Friday praised the interim budget and said that the 2019 Budget touches all sections of the society and includes everyone.
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