Budget 2019- Major Highlights Of Budget By The Government

Reaching out to a large electorate ahead of the Lok Sabha polls, the Modi government Friday announced a cash dole for small farmers, a mega pension scheme for the unorganised sector and doubled the threshold tax exemption limit to Rs 5 lakh.

Presenting the interim 2019-20 union budget in Parliament, Finance Minister Piyush Goyal said Rs 6,000 per year cash support will be given to small and marginal farmers that will cost the exchequer Rs 75,000 crore annually, in a bid to provide relief to distressed farm sector. Under the scheme called ‘Pradhan Mantri Kisan Samman Nidhi’, Rs 6,000 will be transferred into bank accounts of farmers holding up to 2 hectares of land in three equal instalments. Goyal said it will benefit 12 crore farmers and will be implemented from this fiscal itself.

Tax

1. Within 2 years, Tax assessment will be done electronically
2. IT returns processing in just 24 hours
3. Minimum 14% revenue of GST to states by Central Govt.
4. Custom duty has abolished from 36 Capital Goods
5. Recommendations to GST council for reducing GST rates for home buyers
6. Full Tax rebate upto 5 lakh annual income after all deductions.
7. Standard deduction has increase from 40000 to 50000
8. Exempt on tax on second self-occupied house
9. Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000
10. Ceiling Limit of TDS u/s 194I has increased from 180000 to 240000
11. Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses.
12. Benefit u/s 80IB has increased to one more year i.e. 2020
13. Benefit has given to unsold inventory has increased to one year to two years.

Other Areas

14. State share has increased to 42%
15. PCA restriction has abolished from 3 major banks
16. 2 lakhs seats will increase for the reservation of 10%
17. 60000 crores for manrega
18. 1.7 Lakh crore to ensure food for all
19. 22nd AIIMS has to be opened in Haryana
20. Approval has to be given to PM Kisan Yojana
21. Rs. 6000 per annum has to be given to every farmer having upto 2 hectare land. Applicable from Sept 2018. Amount will be transferred in 3 installments
22. National kamdhenu ayog for cows. Rs. 750 crores for National Gokul Mission
23. 2% interest subvention for farmers pursuing animal husbandry and also create separate department for fisheries.
24. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
25. Tax free Gratuity limit increase to 30 Lakhs from 10 Lakhs
26. Bonus will be applicable for workers earning 21000 monthly
27. The scheme, called Pradhan Mantri Shram Yogi Mandhan, will provide assured monthly pension of Rs. 3,000 with contribution of Rs. 100 per month for workers in unorganized sector after 60 years of age.
28. Our government delivered 6 crores free LPG connections under Ujjawala scheme
29. 2% interest relief for MSME GST registered person
30. 26 weeks of Maternity Leaves to empower the women
31. More than 3 Lakhs crores for defence
32. One lakh digital villages in next 5 years
33. Single window for approval of India film makers

Income Tax

1. Taxable Income up to Rs. 5,00,000/- will be exempted;
2. Standard Deduction for salaried persons will be raised from Rs. 40,000/- to Rs. 50,000/-;
3. Tax on notional house property income is exempted upto 2 self-occupied houses;
4. TDS on Interest (Sec. 194A) on Bank and Post office Deposits – Threshold limit raised from Rs. 10000/- to Rs. 40000/-
5. TDS on Rent (Sec. 194I)– Threshold limit raised from Rs. 1,80,000/- to Rs. 2,40,000/-
6. Capital Gain Investment Scheme – on the capital gain upto Rs. 2 Crore can take benefit of investments in upto 2 residential houses. (available once in life time.
7. Exemption to Affordable Housing Projects extended upto 31.03.2020
8. Notional Income tax under income from house property kept as inventory can avail exemption upto 2 years instead of 1 year