Finance minister Piyush Goyal sir presented the much awaited Union Budget in Lok Sabha on Friday. Below is the key benefits presented,
- All those earning less than Rs 5 lakh will get a full tax rebate.
- Individuals with a gross income of Rs 6.5 lakh will have to pay no tax if they make an investment in provident funds and prescribed equities
- Standard tax deduction for salaried persons raised from 40,000 rupees to 50000 rupees.
- TDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees.
- Gratuity limit increased from 10 lakh to 30 lakh.
- Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a tax payer having capital gains up to 2 crore rupees and exercised once in a life time.
- Benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-2020.
- Business with less than Rs.5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns.
- 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 Jan 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.
- 2% interest subvention on loan of 1 crore for GST registered MSME units.
- Within almost two years, all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by tax official.
- Single window clearance for filmmaking to be made available to Indian filmmakers, anti-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.
- 2% interest subvention to farmers pursuing animal husbandry and fisheries.
- Goyal sir also added “Urgent action needed to increase hydrocarbon production to decrease imports, change in bidding procedure and exploration procedure being implemented,”
- Committee under NITI Aayog to be set up to identify and de-notify and nomadic and semi-nomadic communities. Welfare Development Board to be setup under Ministry of Social Justice and Empowerment for welfare of these hard to reach communities and for tailored strategic interventions.
- 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 unorganised sector after 60 years of age.
- 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.
- The 4R approach has been implemented to ensure clean banking –
- Fiscal deficit has been bought down to 3.4%. CAD (current account deficit) likely to be 2.5% of GDP this year.
Soon after presenting the Budget in Lok Sabha, the finance minister, in a press conference, elaborated on the incentives and initiatives announced by his government – “Those sitting in AC rooms cannot understand the plight of the small farmers. Keeping this in mind, we have introduced Pradhan Mantri Kisan Samman Nidhi scheme. This is a historic decision,” he said on the cash incentive scheme launched for the country’s farmers.