As the 01st February, 2019 dawned, the country woke up with a new sense of vigour and excitement. Why? Because it was the time for the current Government to showcase their last budgetary session. 2019 Interim Budget Highlights were oriented towards empowering the underprivileged, and the Centre was able to do so in terms of giving them new facilities and bonuses.
The Finance Minister Piyush Goyal gave a comprehensive overview on what the Government has done for the people for the last 5 years. Then, he listed out some of the schemes which was a bit surprising since this was just an Interim Budget session. Some of the key highlights which made headlines today with respect to this are listed down as follows,
- A complete tax exemption with respect to the annual salary of upto 5 lakh INR.
- Individuals who come under the salary slab of upto 6.5 lakh INR, are also exempted from tax but for the fact that they would need to have investment proofs, provident funds and other authorized equities.
- Tax deduction policies have been reformed with respect to the salaried individuals. The deduction ratehas been increased from 40,000 to 50,000 INR.
- The optimum limit for TDS on interest on bank and other institutions like the post office has been increased from 10,000 to 40,000 INR.
- Creating an increased emphasis on Digital India, the Income Tax processing and filing returns would be done in 24 hours maximum.
- The estimated limit for each and every kind of verification of the tax returns would be 2 years, and it will be carried out electronically. This would also not require any kind of interface from the taxpayer. This will benefit close to 3 crore middle class tax-payers.
- Farmers have been gifted with an annual package of 6000 INR who are possessing less than 2 hectares of land. The scheme has been dubbed as “Pradhan Mantri Kisan Samman Nidhi”.
- Real estate sector has been graced with a lot of benefits owing to the budget. If an investor has capital gains of close to 2 crores, then he/she would receive benefit of rollover of capital tax gains. This facility can be exercised once.
- The benefits also include each and every one of the points covered in Section 80(i) BA would be extended for one more year for each and every housing project from 2019-2020.
- Also, the Government would be decreasing the GST rates for affordable homes which would bring immediate relief for close to 80,000 crore INR for the consumers.
Owing to GST being a common tax reform that revolutionized the country, share markets have taken it as a positive sign of the things to come. The 2019 Interim Budget Highlights also includes pension scheme for workers who specifically come from the organized sector. Farmers would be provided additional interest rates on crop damages due to natural calamities. The biggest concern included the increase in the MSP which has been increased by 1.5 times for close to 22 crop varieties. The 2019 Interim Budget is just a sign of things to come and the Government has definitely made a power-play before the actual budget comes along.