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Union Budget 2019: No tax for income upto Rs 5 lakhs

Making the biggest announcement in the union budget 2019-20, Piyush Goyal said that the income-tax slab has been increased to 5 lakhs from the current 2.5 lakhs. This will provide the tax benefits to over 18 thousand crore rupees to around 3 crore middle class families.

Saima Siddiqui

Saima SiddiquiBy Saima Siddiqui

Published on 1 Feb 2019 4:56 AM GMT

Union Budget 2019: No tax for income upto Rs 5 lakhs
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Union Budget: FM Piyush reaches Parliament, will present Budget at 11am
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New Delhi: Union Minister Piyush Goyal has presented the Interim Budget for 2019-20 in Parliament, which deals with farm distress. Calling it a visionary budget, the acting finance minister said that country will see a major change in the next ten years.

Making the biggest announcement in the union budget 2019-20, Piyush Goyal said that the income-tax slab has been increased to 5 lakhs from the current 2.5 lakhs. This will provide the tax benefits to over 18 thousand crore rupees to around 3 crore middle class families.

The declaration of Minimum Support Price (MSP) by 1.5 times covers the production cost for all 22 crop, this move aims at soothing the sore of farmers by doubling their income who have seen their incomes stagnate because of plunging prices, barely enough to pay for loans and input costs.

The Government of India is aiming to uplift the life of small peasants, using MSP as a tool to ensure agricultural producers against any sharp fall in farm prices.

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Highlights of the Budget 2019-20:

Income Tax:

-Individual taxpayers having annual income upto 5 lakhs will get full tax rebate.

-Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.

-We are poised to become a 5 trillion dollar economy in the next 5 years and we aspire to become a 10 trillion dollar economy in the next 8 years Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities.

-He also said that 18% increase in direct tax collections in 2017-18, 1.06 crore people included in the tax base. More than 1 crore people filed IT returns for the first time, after demonetization.

Farmers:

-Instead of rescheduling of crop loans, the farmers severely affected by natural calamities will get 2% interest subvention and additional 3% interest subvention upon timely repayment.

-This initiative will benefit 12 crore small and marginal farmers, at an estimated cost of Rs. 75,000 crore.

- To provide assured income support for small and marginal farmers, Pradhan Mantri Kisan Samman Nidhi scheme has been approved

-For the welfare of farmers and for doubling their income, historic decision was taken to increase MSP by 1.5 times the production cost for all 22 crops.

-An urgent action is needed to increase hydrocarbon production to decrease imports.

GST:

-GST has been continuously reduced resulting in relief of Rs 80,000 crore rupees to the consumers; Most items of daily use are now in the 0%-5% tax bracket.

-The Group of Ministers is examining how prospective house buyers can benefit under Goods & Services Tax (GST).

-GST is probably the biggest taxation reform implemented since Independence; with tax consolidation, India became one common market; inter-state movements became faster through e-way bills, improving Ease of Doing Business.

-Direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore; The tax base is up from Rs 3.79 crore to 6.85 crore.

Defence:

-The defence budget has enhanced beyond Rs 3 lakh crore.

-We have already disbursed Rs 35,000 crore for our soldiers under 'One Rank One Pension', substantial hike in military service pay has been announced.

-Our soldiers are our pride and honour; 'One Rank One Pension', which was pending for the last 40 years, has been implemented by us.

Entertainment Industry:

- A single window clearance for filmmaking to be made available to filmmakers, anti-camcording provision to also to be introduced to Cinematography Act to fight piracy.

Women:

-26 weeks maternity leave for pregnant women.

-75% of woman beneficiaries under Pradhan Mantri Mudra Yojana, 26 weeks of maternity leave and the Pradhan Mantri Matritva Yojana, are all empowering women in the country.

-To ensure cleaner fuel and health assurance, we embarked upon Pradhan Mantri Ujjwala Yojana, a programme to give 8 crore free LPG connections to rural households, 6 crore connections have been given already.

Rural Areas:

-Piyush Goyal announced higher allocation for MNREGA for rural job creation.

-As a tribute to Mahatma Gandhi, world's largest behavioural change movement Swachh Bharat initiated; more than 98% rural sanitation coverage has been achieved; more than 5.45 lakh villages declared ODF.

Other Highlights:

-The fiscal deficit as a proportion of GDP- 3.4% for the coming year, as there is a need to provide for income support for farmers.

-Rs 1 crore loan can be obtained under 59 minutes, says Piyush Goyal while presenting the interim Budget for 2019-20 in the Lok Sabha.

-Minister Piyush Goyal in budget speech: Inflation in December 2018 was 2.1%. Fiscal deficit has been brought down to 3.4% in the revised estimate of 2018-19.

-Committed to eliminating the scourge of black money; anti-black money measures taken have brought an undisclosed income of about 1.30 lakh crore rupees to the fore; 3.38 lakh shell companies were deregistered.

-A pension scheme is being launched called Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with the contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.

-Allocation for the north eastern region has been proposed to be increased to Rs 58,166 crore in this year, it will be a 21% rise over the previous year.

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The interim budget will play a crucial role in deciding BJP's fate. The budget is expected to have some key announcements like loan waiving policies, relief packages for farmers, small traders and middle class population.

The Union Minister of Agriculture & Farmers Welfare, Radha Mohan Singh said that this budget will surely benefit Indian farmers.

It is to be mentioned that, Central government, on Wednesday appointed Piyush Goyal as the interim Finance Minister for second time in the absence of ailing Arun Jaitley.

Piyush Goyal was appointed as the Minister of Finance and Minister of Corporate Affairs by the President of India as the proxy of Arun Jaitley, who is in the US reportedly for treatment of a prolonged illness.

Piyush Goyal, already in-charge of heavyweight ministry — the Railways, has earlier too took over the charge of Ministry of Finance. He took the responsibility for about three months earlier last year as well, when Arun Jaitley went on a leave for a renal transplant.

Earlier last week, Arun Jaitley had dropped hints that the Budget 2019 could include big announcements that can’t wait, even as it would not be fiscally expansionary. Larger national interest would decide the budget, Arun Jaitley had said on January 24 via videoconferencing from the US, addressing a gathering of industrialists back in India.

However, market analyst Ashwani Gujral says that this budget may not have anything big to cater, "No reason to be excited about the Budget. While many may hope for a dream Budget or something like that, there is unlikely to be anything big. This is a vote on account after all. He is voicing the general mood in the market."

This is Modi government’s fifth and last budget, as the country heads for a Lok Sabha election. The government is leaving no stone unturned to achieve maximum votes and win the LS polls.

Though the latest set of data showing four-decade high unemployment rates has not only stirred up the nation wide criticism against Modi-led BJP government, but it may also adversely affect the 2019Lok Sabha Polls result, to avoid such a political conundrum BJP has tried to win voters by wooing them with this budget.

ALSO READ: Unemployment rate highest in India in last four decades: NSSO Survey

Saima Siddiqui

Saima Siddiqui

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