Finance Minister PiyushGoyal, presented Budget 2019 on Friday 2nd February.
“This budget will empower the poor, strengthen the farmers and help realize the dream of the middle class.” Said PMNarendraModiJi.
Here are the important highlights from the budget meeting.
- This budget will directly benefit as many as 12 crore farmers and 3 crore taxpayers: PM Modi
- Honorarium to be given to workers in the unorganized sector for their hard work for the development of India. Workers can join this scheme during 18-40 age group, by contributing a nominal amount: FM Goyal
- Rs 6,000 per year for farmers with less than 2 hectares landholding; request states to give the list of these holdings: FM
- People with annual income of up to Rs 5 lakh, after taking into account all the deductions, are now eligible for full tax rebate: FM
- A capital expenditure allocation of Rs 1.58 Lakh crore for the railways was announced. Also, no railway fare hike was announced in the Railway Budget for 2019.
- The budget offers big relief to the middle-class people in the country. Salaried individuals earning up to Rs 6.5 lakh annually can now avail full tax rebate
- At Rs 3 lakh crore, the government has set aside the maximum amount for armed forces since Independence.
- Income tax relief on Notional Rent from unsold houses extended to 2 years
- Benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till the end of 2019-2020
- TDS threshold on rental income raised from Rs 1,80,000 to Rs 2,40,000
- Individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities
- Standard deduction has been increased to Rs 50,000 from Rs 40,000
- Fiscal deficit as a proportion of GDP – 3.4% for the coming year
- Due to note ban, over 1 crore people have filed tax returns
- Average monthly tax collection in the current year under GST is Rs 97,000 crore per month
- No tax on notional rent of second Self-occupied House under “Income from House Property” i.e. up to two self-occupied house properties to be considered for exemption.
- Tax Rebate Limit under 87A increased from Rs. 3.5 lakhs to Rs. 5 lakhs for taxpayers. The maximum limit of the tax rebate increased to Rs.12,500 from the present limit of Rs. 2,500.
- TDS limit under Section 194A hiked from Rs 10,000 to Rs 40,000 on Post Office Savings and Bank Deposits.
- SMEs with earnings below Rs 5 Crores will soon file GST returns only once in 3 months.
- MSMEs and Traders to note that GST Registered SME units will get 2% interest rebate on an incremental loan of Rs. 1 Crore.
- The requirement of sourcing from SMEs by Government enterprises has been increased to 25% with 3% reserved for women-owned SMEs.
- A scheme of ‘Business loans up to Rs. 1 crore in 59 minutes’ will be implemented.
- Providing cleaner fuel for rural women – out of the 8 crores promised free LPG connections, 6 crores is already delivered under UjjwalaYojana and remaining will be delivered in the coming year.
- More than 7,000 beneficiaries of PM Mudra Yojana are women. 15.56 crore loans of ₹7.23 lakh crore disbursed under MUDRA Yojana.
- Benefits of maternity leave of 26 weeks have provided support to women.
- 3 banks namely Bank of India, Bank of Maharashtra and Oriental Bank of Commerce are out of Prompt Corrective Action (PCA)
- 8 public sector banks still remain within PCA framework which imposes restrictions on lending and expansion.