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Interim Budget 2019: Tax Relief For The Salaried And Other Key Takeaways

Interim Budget 2019: Tax Relief For Salaried And Other Key Takeaways
(Source- PIB Twitter handle)

News Desk

Interim Budget 2019: Tax Relief For The Salaried And Other Key Takeaways

The Budget was a roadmap for the country’s development, Piyush Goyal said.

The Interim Budget 2019 presented by Piyush Goyal on Friday announced significant sops for the salaried middle class and income support for farmers. In what has been described as an election Budget, Goyal came out with a series of schemes and proposals that he claimed would benefit crores of people across the country.

Here are some key takeaways from the Interim Budget 2019.

Tax Relief And Benefits

A tax benefit of about Rs. 18,500 crore is proposed to be provided to an estimated 3 crore middle class and small taxpayers comprising self employed, small business, small traders, salary earners, pensioners and senior citizens.

Individual taxpayers with taxable annual income up to Rs.5 lakh will get full tax rebate.

People having gross income up to Rs. 6.50 lakh are also exempted from income tax if they make investments in provident funds, specified savings and insurance etc.

The Standard Deduction is being raised from the current Rs.40,000 to Rs.50,000 for salaried people, providing an additional tax benefit of Rs. 4,700 crore.

The Interim Budget 2019-20 also includes additional deductions like interest on home loan up to Rs. 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance and medical expenditure on senior citizens etc.

TDS threshold on interest earned on bank/post office deposits is being raised to Rs.40,000.

TDS threshold for deduction of tax on rent is proposed to be increased from Rs. 1,80,000 to Rs.2,40,000 for providing relief to small taxpayers.

(Read – All You Need To Know About India’s Goods And Services Tax)

Bonanza For Farmers

The new scheme ‘Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN)’ will extend direct income support at the rate of Rs. 6,000 per year to farmer families, having cultivable land upto 2 hectares.

Our Government is launching a historic programme PM-KISAN with an outlay of Rs.75,000 crore for the FY 2019-20 and Rs.20,000 crore in the Revised Estimates of FY 2018-19.

– Piyush Goyal

Under the scheme, Rs.2,000 each will be transferred to the bank accounts of around 12 crore small and marginal farmer families, in three equal installments.

Commencing from 1 December 2018, the first installment for the period upto 31 March 2019 would be paid during this year itself.

The Finance Minister announced 2% interest subvention to the farmers pursuing the activities of animal husbandry and fisheries, who avail loan through Kisan Credit Card.

In case of timely repayment of loan, they will also get an additional 3% interest subvention.

The government has decided to create a separate department of fisheries to promote growth over 7% and livelihood to about 1.45 crore people.

Mission For Women Protection And Empowerment

Interim Budget 2019-20 provides an amount of Rs.1330 Crore for the Mission for Protection and Empowerment for Women.

The emphasis of the Government has been to move from ‘women’s development’ to ‘women led development’ during the last 4.5 years.

Over 70% of the beneficiaries of Pradhan Mantri MUDRA Yojana are women who are getting affordable and collateral-free loans to start their own businesses.

The Finance Minister also highlighted the benefits of maternity leave of 26 weeks and Pradhan Mantri Matru Vandana Yojana for pregnant women.

Medical Advancements

The world’s largest healthcare programme, Ayushman Bharat would provide medical treatment to nearly 50 crore people in the country,

Several people are also benefiting from reduction in the prices of essential medicines, cardiac stents and knee implants, and availability of medicines at affordable prices through Pradhan Mantri Jan Aushadhi Kendras, the Finance Minister added.

Piyush Goyal also announced setting up the 22nd AIIMS in Haryana.

Indian Railways

The government has allocated Rs 64,587 crore for railways in the Interim Budget 2019-20.

Capital support from Budget for railways is proposed at Rs 64,587 crore while the railways’ overall capital expenditure programme is historic at Rs 1,58,658 crore.

All unmanned level crossings on broad gauge network have been completely eliminated.

-Piyush Goyal

Speaking about the manufacture of the engineless Train 18, Goyal said that the Vande Bharat Express would give Indian passengers world class facility, with speed, safety and service.

It will give an impetus to Make in India programme and create jobs.

The operating ratio of railways will reduce to 95% in 2019-20 against 96.2 % in 2018-19.

Pension For Unorganised Sector

To provide pensionary benefits to at least 10 crore labourers and workers in the unorganised sector, a new Scheme called ‘Pradhan Mantri Shram-Yogi Maandhan’ has been announced.

Within next five years, it would be one of the largest pension schemes of the world, said the Finance Minister, allocating a sum of Rs.500 crore for the Scheme.

Other Major Schemes

The budget has announced an allocation of Rs.60,000 crores for MGNREGA while the additional allocations will be made, if required.

Pradhan Mantri Gram Sadak Yojana (PMGSY) has been allocated Rs.19,000 crore.

By March, 2019, all households will be provided with electricity connection.

The Government embarked to deliver 8 crore free LPG connections under the Ujjawala Yojana. Out of which, 6 crores connections have already been given.

Interim Budget 2019 – Other Highlights

A National Artificial Intelligence Portal will also be developed as a part of the National Programme on ‘Artificial Intelligence’.

The Finance Minister announced that for the first time, the highest country’s Defence Budget will be of over Rs.3 lakh crore.

To promote entertainment industry, the Single window clearance for ease of shooting films, now available only to foreigners, will also be made available to Indian filmmakers.

(Note- All the photos are from the PIB Twitter handle.)

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