The government is also looking to reduce corporate tax and sops to startups, electric vehicles, and the housing industry. Digital payments are likely to get cheaper and affordable housing will be encouraged through new rental laws.
The key highlights of the Union Budget 2019 are mentioned in the table below:
|Promotion of Digital Payments||
|Pension||A pension benefit of Rs.3 crore has been proposed for shopkeepers and retail traders who have an annual turnover less than Rs.1.5 crore.|
|Tourism||Development of 17 world-class tourist sites is planned.|
|State of Economy||
|Reforms in banking||
|Auto Sector||The government will support the FAME II scheme that will ensure quicker adoption of electric vehicles and associated charging infrastructure in the country.|
|Sports||The government aims to popularise sports in the country at multiple levels. National Sports Education Board will be set up for encouraging sports persons under the Khelo India scheme.|
Top Highlights from 2019 Interim Budget Session
The 2019 Interim Budget was presented on 1 February by the Interim Finance Minister Piyush Goyal. It is a budget which is pushed by a populist move. The main highlight of this budget is that income tax is to be exempted for incomes of up to Rs.5 lakh.
The budget is mainly aimed at relieving the middle class and the salaried individuals. However, it has also relieved the workers from the unorganised sector.The key highlights from the 2019 Interim Budget can be summed up as follows:
- Income tax to be exempted for individuals drawing an income of up to Rs.5 lakh.
- The standard deduction of Rs.40,000 has been raised to Rs.50,000.
- Rs.23,000 crore relief to be proposed through direct tax to offer relief to 3 crore taxpayers.
- A person will not be required to pay any income tax if they draw a gross income of up to Rs.6.5 lakh and make investments in insurance, specified savings, and provident funds.
- An assured yearly amount of Rs.6,000 to be provided to 12 crore small and marginal farmers under the PM-KISAN scheme.
- The Tax Deducted at Source (TDS) threshold to be raised from Rs.10,000 to Rs.40,000 for interest which is earned on deposits in banks and/or post offices.
- Tax exemption on notional rent on a second self-occupied house.
- The Tax Deducted at Source (TDS) threshold to be raised from Rs.1.8 lakh to Rs.2.4 lakh for the deduction of tax on rent.
- The tax benefits have been extended till 31 March 2020 for affordable housing.
- The tax exemption period extended from 1 year to 2 years for notional rent on unsold inventories.
- Rs.75,000 crore to be allocated for the financial year 2019-20 for the PM-KISAN scheme.
- Farmers to be provided with an interest subvention of 2% during disasters for the complete period of reschedulement of a loan.
- Farmers related to fisheries and animal husbandry activities to be provided with an interest subvention of 2%. An additional interest subvention of 3% to be provided in case of timely repayments.
- Under the PM Shram Yogi Maandhan Scheme, 10 crore workers belonging to the unorganised sector will be eligible to receive a monthly pension of Rs.3,000 with a contribution of Rs.100 or Rs.55 per month.
- The fiscal deficit has been fixed at 3.4% of GDP for 2019-20 with the target of making it 3% by 2020-21.
- The Current Account Deficit has been set at 2.5% of GDP for the financial year 2020.
- The total expenditure for the financial year 2020 to rise to Rs.27.84 lakh (rise by 13%).
- The allocation towards the National Education Mission to be increased to Rs.38,572 crore (rise by around 20%).
- The allocation towards the Integrated Child Development Scheme to be increased to Rs.27,584 crore (rise by more than 20%).
- Disinvestment target for financial year 2020 has been set at Rs.90,000 crore. The same target is likely to be met for the financial year 2018-19 which was set at Rs.80,000 crore.
- In order to meet the 10% reservation for the poor, the educational institutions will get 25% additional seats.
- Defence budget to be allocated at an all-time high of over Rs.3,00,000 crore.
- The allocation for the North East has been increased to Rs.58,166 crore for the financial year 2020 (rise by 21%).
- For the financial year 2020, railways department is set to get a capital support of Rs.64,587.
- The filmmakers of India to get single window clearance access for the purpose of easy shooting of films. The regulatory norms will mostly rely on self-declaration.
- For entities who are registered under the Goods and Services Tax (GST), 2% interest subsidy will be provided for MSMEs on incremental loans of Rs.1 crore.
- Out of the 25% sourcing for the government undertakings, a minimum of 3% will be from SMEs which are owned by women.
- Within a period of 5 years, 1 lakh villages are to be transformed into digital villages.
- New portal in order to support national programme on Artificial Intelligence (AI).
- Reforms and amendments to be made in stamp duty to make sure that a streamlined system is implemented for the levy of stamp duties which are to be imposed, as well as, collected at one place.
- With the intention of the betterment of 1.5 crore fishermen, a Department of Fisheries is to be created separately.
- The 22nd AIIMS planned to be set up in Haryana.
- An allocation of Rs.60,000 crores for MGNREGA in the year 2019-20.
- India to become a $5 trillion economy in the upcoming 5 years and a $10 trillion economy in the next 8 years.
Highlights on the basis of different sectors:
The highlights of the 2019 Interim Budget with regard to the different sectors can be summed up as follows:
- Economy: Interim Finance Minister Piyush Goyal said that India has already been validated as a hefty player in the global economy. It is also said to be one of the fastest growing economy. He added that for the current financial year, the Current Account Deficit (CAD) is to be cut down to 2.19% from 5.6%.
- Anti-corruption: The Interim Finance Minister has also pitched in for more transparency with reference to the coal block auction and spectrum auction.
- Housing and electricity: The Interim Finance Minister has claimed that the government has built 1.53 crore houses under the housing scheme. He added that under the Saubhagya Yojana, almost every house has been provided with an electricity connection for free.
- Farming: The amount of Rs.6,000 which is to be allocated for the farmers, as mentioned above, will be transferred to their bank accounts in 3 instalments. It can be availed by any farmer who holds less than 2 hectares of land. An estimated amount of Rs.75,000 crore will be spent by the government for this scheme.
- For the common man: The contribution for new pension schemes under the EPFO has been bumped up to 14% from 4%. The Interim Finance Minister also said that the gratuity limit has been to Rs.30 lakh from Rs.10 lakh.
- For women: The Interim Finance Minister said that the central government is prioritising women. He claimed that 75% of the total women are enrolled as beneficiaries under the Pradhan Mantri Mudra Yojana. He added that the women are entitled to 26 weeks of maternity leave.
- For workers belonging to the unorganised sector: Under the Pradhan Mantri Shram Yogi Mandhan pension scheme launched by the government, the workers who belong to the unorganised sector will be eligible to draw a pension of Rs.3,000 every month after the age of 60 years.
- Defence: The defence budget for 2019 has been set at more than Rs.3 lakh crore. Thus, the defence budget has hit an all-time high. The Interim Finance Minister also added that Rs.35,000 crore has been allocated under the ‘One Rank One Pension’ scheme for the soldiers.
- Income Tax: The interim Interim Finance Minister said that the direct tax collection has been increased from Rs.6.38 lakh crore to Rs.12 lakh crore. He also added that the income tax return will now be processed within 24 hours and the refunds will be initiated accordingly.
Top Highlights Budget Session for FY 2018-2019 by Finance Minister, Arun Jaitley
The 2018 Union Budget was presented by the Finance Minister Arun Jaitley, on 1 Feb 2018. This is the first budget after the introduction of prominent reforms in the Indian economy, such as the Goods and Services Tax implementation, mega PSU bank recapitalisation, and dynamic fuel pricing.The key features of the Union Budget 2018 are as described below:
- Fiscal situation - In 2018-19, the government is aiming for fiscal deficit target of 3.3% of the GDP.
- Agriculture - The main points highlighted in the segment of agriculture were as follows:
- The government resolves to increase the income of farmers to double the current value and hike the minimum support price (MSP) for Kharif crops to 1.5 times the value of production. The government will provide the right prices to farmers in case they receive lower market prices than the MSP.
- Organic farming and cluster development model for agriculture will be encouraged.
- Allocation of Rs.500 crore is provided to Operation Green.
- Agricultural segments of bamboo farming, fisheries, and animal husbandry will be encouraged.
- Rs.11 lakh crore will be offered as credit to the farming sector.
- Income Tax Calculator
- Rural - The main points highlighted in the rural segment were as follows:
- Gas connections will be introduced in the households of 6 crore rural women.
- Rs.16,000 crore has been set aside for the Pradhan Mantri Saubhagya Yojana. This would provide free electricity to 4 crore rural households.
- The Swachh Bharat Mission will be extended to offer 2 crore toilets to rural houses.
- Under the Pradhan Mantri Awas Yojana, 51 lakh houses will be constructed in the rural areas.
- Loans for women’s self-help groups has increased to Rs.75,000 crore.
- For housing, livelihood, and infrastructure projects in the rural areas, the government has allocated a total amount of Rs.14.34 lakh crore.
- Health and Education - The main points highlighted were as follows:
- Focus will be on incorporating technology into education.
- By the year 2022, every block that houses more than 20,000 tribals and over 50% scheduled tribes will witness the inauguration of an Eklavya school.
- The government will shift to a structure wherein universal health coverage will be offered to citizens.
- Proposal for 2 new schools of infrastructure and planning has been laid down.
- To reduce brain drain, top performers from leading engineering schools will be selected and given an opportunity to study at IIScs and IITs.
- 60 crore bank accounts will be brought under the Jan Dhan Yojana.
- There is a proposal for the allocation of Rs.1 lakh for the overall strengthening of the education sector in the country.
- At least one medical college will be present for three parliamentary constituencies.
- There is an allocation of Rs.52,719 crore for the welfare of the scheduled castes in the country.
- Industry - The provisions under this section are as follows:
- The Finance Minister has set aside Rs.3,794 crore as industry subsidy and capital support for the Micro, Small, and Medium Enterprises (MSME) sector.
- Excise cut on fuel has been announced.
- Railways - The reservations for this sector include the following:
- The total capital expenditure that is set for the Indian Railways comes up to Rs.1,48,528 crore.
- The infrastructure of some railway stations will be revamped, with escalators making an entry in all stations with footfall of 25,000 passengers.
- All trains will be installed with CCTV cameras and WiFi connectivity.
- Allocation for Bengaluru Metro is Rs.17,000 crore and that for Mumbai rail network is Rs.11,000 crore.
- Taxation - The highlights of this segment are as follows:
- There will not be any changes to the income tax rates for individuals in the salaried class.
- Salaried taxpayers will have standard deduction of Rs.40,000.
- Long-term capital gains will be taxed at 10% for investments that are above Rs.1 lakh. Short-term capital gains tax will remain at 15%.
- Tax exemption limit has been raised to Rs.50,000 on interest income for bank deposits of senior citizens. Exemption limit for income from post office schemes and bank FDs will be 10%.
- Infrastructure - The reservations in the infrastructure realm are as follows:
- 10 key tourist spots in the country will be elevated to the level of iconic tourist destinations.
- “Pay as you see” system will be introduced in relation to toll payments on highways.
- An outlay of Rs.5.35 lakh crore has been announced for phase 1 of the Bharatmala project.
- Trade - The provisions under this sector include the following:
- Hike in customs duty on televisions and mobile phones has been announced to promote the Make in India initiative.
- Imports will be imposed a 10% social welfare surcharge.
- Employment - The government will ensure the contribution of 12% of salary of fresh employees towards the Employee Provident Fund scheme for 3 years. The contribution of women in this regard has been decreased to 8% for the first 3 years.
- Defence - The total outlay for this sector is Rs.2.95 lakh crore. The Finance Minister said that there will be a boost in the defence manufacturing segment to promote the Make in India initiative.
- Technology - The Digital India programme will receive an allocation of Rs.3,073 crore. Up to 5 lakh WiFi connections will be installed to provide broadband coverage to 5 crore citizens in the rural parts of the country. The amount allocated for this purpose is Rs.10,000 crore. The government also looks to prevent the circulation of cryptocurrencies.
- Finance, markets, and insurance - The government will encourage angel investors and venture capital financing. Large corporations will have to meet one-fourth of their debt requirements from bond markets. National Insurance Co., Oriental Insurance Co, and United India Assurance Co. will undergo a merger to form one listed entity.
- Aviation - Capacities of airports will be increased to 5 times the current value. The UDAN scheme will ensure that 64 airports across the length and breadth of the country will be connected through air to boost low cost flying.
- Miscellaneous - The subsidy for food has been hiked to Rs.1.69 lakh crore in 2018-19. The emoluments of MPs may see an increase on the basis of index to inflation.
Tax Top Pages
- Tax Credit
- Stamp Duty
- Withholding Tax
- Cancelled Cheque
- Income Tax Act
- Tax Evasion
- Tax Rebate
- Gross Salary
- Professional Tax
- Trademark Registration
- Corporate Tax
- Net Salary
- Tax Exemption
- Advance Tax Payment
- Gst News
- Ghmc Property Tax
- Form 15G
- Deferred Tax
- Marginal Tax Rate
- Csd Price List For Cars Bikes
Tax Trending Pages
- Himachal Pradesh Vat
- Jharkhand Vat
- Karnataka Vat
- Advance Tax For Non Individuals
- Advance Tax Interest And Penalties On Late Payment
- 4th 5th 6th And 7th Cpc Pension Calculator
- 7th Cpc Children Education Allowance
- 7th Cpc Classification Of Posts
- 7th Cpc Fitment Table
- 7th Cpc House Building Advance
- 7th Pay Commission Pay Matrix Table
- Gst Benefits
- Gst Bill
- Property Tax Pune
- Step By Step Guide Paying Property Tax
- Andhra Pradesh Road Tax
- Arunachal Pradesh Road Tax
- Assam Road Tax
- Bihar Road Tax
- Chandigarh Road Tax