Interim Budget 2019

anuran : Wed, 04/17/2019 - 16:15

1. What are the key highlights from the Indian Union Budget 2019-20?  

Several sops were announced in the Indian Union Budget 2019. Let’s have a look at the key highlights from the Budget 2019:

Taxpayers can heave a sigh of relief with the following announcements:

  • Tax rebate for income up to Rs. 5 lakh for individual taxpayers. 
  • Standard deduction raised by another Rs. 10,000 to Rs. 50,000
  • TDS deduction for home rent limit has been raised from Rs 1.8 lakh to 2.4 lakh
  • Interest income from bank accounts and post office up to Rs 40,000 is not taxable
  • Gratuity limit increased from Rs 10 lakh to Rs 30 lakh

Have a more detailed look at what the Budget 2019 means for Taxpayers.


Even when we talk about social welfare, quite a few changes were announced:

  • Pradhan Mantri Shram Yogi Mandhan Yojana launched and Rs 500 crore allocated, for the unorganised sector workers who have an income of up to Rs 15,000 per month. Under the scheme, beneficiaries will be eligible for a pension of Rs 3,000 per month for a contribution of Rs 100 per month.
  • Govt announces Pradhan Mantri Kisan Samman Nidhi scheme for farmers having up to 2-hectare land.
  • A massive Rs 60,000 crore is being allocated for MNREGA this year. This addresses the increasing unemployment problem to an extent.


When it comes to infrastructure, the notable announcements were as follows:

  • Defence budget earmarked at an all-time high of Rs 3 lakh crore, with importance on border security.
  • Railways have been allocated Rs 64,000 crore for this year. Notably, once completed, Vande Bharat Express will provide world-class train experience in India.


Have a look at a detailed summary of the Union Budget 2019 with Tomorrowmakers. 


2. What are your thoughts on Modi government's Interim Budget 2019?

The Modi government announced its interim budget on 1st February 2019. Since the elections are scheduled this year, the interim budget doesn’t announce any major reforms. The ruling party after the elections will announce the complete budget and add changes to the interim budget presented by Arun Jaitley.

Have a look at how the past five budgets impacted your finances.

Here are the major announcements made in the interim budget:

  • Revision of fiscal deficit to 3.4% of GDP up from the 3.3% last year 
  • Exceeding the 3.2% target set by the government in the last budget
  • Introduction of Pradhan Mantri Kisan Samman Nidhi which will pay Rs. 6000/year to farmers owning up to 2 hectares of land
  • Tax exemption for individuals earning up to 5 lakhs annually, and zero tax payment for individuals earning up to 6.5 lakhs but also invest in tax saving schemes
  • Allocation for the defence sector  was increased to an all-time high of 3 lakh crores while the railway allocation was reduced to 64k crores down from the 1.4 lakh crore allocated last year

Find out more details about the Interim Budget 2019 with Tomorrowmakers.

 

3. What do you think about India's 2019 budget?

The Modi government announced its interim budget on 1st February 2019. In accordance with the past interim budgets, the Modi government has not announced any big reforms this year. Here are major announcements made in this year’s budget:

  1. Revision of fiscal deficit to 3.4% of GDP up from the 3.3% last year and also exceeding the 3.2% target set by the government in the last budget
  2. Introduction of Pradhan Mantri Kisan Samman Nidhi which will pay Rs. 6000/year to farmers owning up to 2 hectares of land
  3. Tax exemption for individuals earning up to 5 lakhs annually, and zero tax payment for individuals earning up to 6.5 lakhs but also invest in tax saving schemes
  4. Corporates have also been offered tax exemptions by reducing the tax rate to 25% from the 30% last year; while angel tax has been abolished to help start-ups
  5. Allocation for the defence sector  was increased to an all-time high of 3 lakh crores while the railway allocation was reduced to 64k crores down from the 1.4 lakh crore allocated last year


Although the government has reduced black money and expedited collection of funds from bankrupt companies, the effects haven’t been as prominent. The fiscal deficit has actually increased to 3.4% this year. Other prominent issues such as the 45-year high unemployment rate weren’t mentioned at all. Find out more details about the Interim Budget 2019 with Tomorrowmakers.

 

4. How do you think the Union Budget 2019 is going to affect the common man?

The Union Budget 2019 has good news for the common man. Some of the benefits being:

  • Bank Deposits & Realty Investments: The Budget has proposed an increase in the limit of tax deducted at source (TDS) on interest earned on term deposits, savings accounts, and other deposit schemes with banks or post offices. The limit will be quadrupled from Rs 10,000 to Rs 40,000 for a financial year. The same has been increased to Rs 50,000 on interest income earned by senior citizens.
  • Pradhan Mantri Shram-Yogi Maandhan: The Pradhan Mantri Shram-Yogi Maandhan (PMSYM) is designed to offer a pension of Rs 3,000 per month to anyone over the age of 60 from the unorganised sector. It will include workers who have a monthly income of up to Rs 15,000. 
  • In addition to the PMSYM scheme, allocation for the MNREGA has been increased to Rs. 60,000 crore to address the unemployment problem to an extent.
  • Pradhan Mantri Kisan Samman Nidhi scheme for farmers having up to 2-hectare land. As many as 12 crore farmers are likely to get Rs 6,000 per year. 
  • 2% interest subvention announced for farm loans of farmers suffering from natural calamities, with a further 3% subvention upon repayment. This scheme comes in place of crop loan rescheduling. Similar 2% subvention given to farmers engaged in animal husbandry and fisheries.


5. How is the Union Budget 2019 -2020 going to affect the livelihood of the Indian middle class? 


The Union Budget 2019 has introduced some good reforms for the middle-class. Here are some of the benefits:

  • Bank Deposits & Realty Investments: The Budget has proposed an increase in the limit of tax deducted at source (TDS) on interest earned on term deposits, savings accounts, and other deposit schemes with banks or post offices. The limit will be quadrupled from Rs 10,000 to Rs 40,000 for a financial year. The same has been increased to Rs 50,000 on interest income earned by senior citizens.
  • Direct Tax Rate Relaxation: Direct taxes for individuals earning under 5 lakhs are completely removed, while individuals earning up to 6.5 lakhs and investing in tax saving schemes also get complete tax exemption.
  • Pradhan Mantri Shram-Yogi Maandhan: The Pradhan Mantri Shram-Yogi Maandhan (PMSYM) is designed to offer a pension of Rs 3,000 per month to anyone over the age of 60 from the unorganised sector. It will include workers who have a monthly income of up to Rs 15,000. 
  • Tax exemption: Tax exemption for individuals earning up to 5 lakhs annually, and zero tax payment for individuals earning up to 6.5 lakhs but also invest in tax saving schemes. For Taxpayers, the Union Budget 2019 surely has bought some great announcements.
  • Pradhan Mantri Ujjwala Yojana: The Pradhan Mantri Ujjwala Yojana is designed to give 8 crores free LPG connections to rural households, of which 6 crores have already been given.