The interim budget announced on 1st Feb 2019 has bought out joy to middle-class taxpayers, common man and especially the farmers. The satisfaction from this budget was visible on the domestic market that saw a rise of 1 percent.
Many market leaders, economists and corporate experts are saying that the budget has set a strong foundation of high growth in the coming years. It will bring host of provisions that are going to boom India’s economy in the coming time. Brinda Jagirdar, a senior economist, states that the budget proposed by the government is an incredibly balanced and incremental one.
In the article, we will discuss the key highlights of the interim budget 2019 and what it has in store. Read on to know more.
Major Announcements Made in The Interim Budget
|Particulars||Before Interim Budget||After Interim Budget|
|Standard Deduction||Rs. 40,000||Rs. 50,000|
|Rental Income (TDS Limit)||Rs. 1.8 Lakhs||Rs. 2.4 Lakhs|
|Interest Income on Post Office and Bank Deposits (TDS Limit)||Rs. 10,000||Rs. 40,000|
|Gratuity Limit||Rs. 10 Lakhs||Rs. 20 Lakhs|
|EPF Limit (In case of demise of the employee)||Rs. 2.5 Lakhs||Rs. 6 Lakhs|
|ESI Limit||Rs. 15,000||Rs. 21,000|
|Benefits on Capital Gains||Tax exemption on the purchase of a single house property from capital gains||Tax exemption on the purchase of two-house properties from capital gains|
The Key Highlights of The Interim Budget
- For Individuals
- Complete tax exemption to an individual taxpayer whose annual income is up to Rs. 5 lakhs, this will benefit over 3 crore people in the country
- The benefit of capital gains has been increased. Now, individuals can invest in two residential houses in order to save capital gain tax for a taxpayer having capital gains up to Rs.2 crore.
- If an individual makes investments in provident fund and other instruments, then they can save tax on gross income up to Rs. 6.5 lakhs
- For Businesses
- Business entities with annual turnover below 5 crores, will be allowed to file returns quarterly
- Housing projects to get higher benefits under Section 80(i)BA, providing real-estate developers and home buyers better profits
- MSME units that are GST registered will get 2 percent deductions on the loan of Rs. 1 Crore
- Sourcing from Government for SME’s will be increased to 25 percent with 3 percent reserved for SME’s owned by women
- A plan will be implemented soon that will provide business loan up to 1 crore in just 59 minutes
- For Banking Reforms
- A resolution-friendly mechanism that has been introduced by IBC will speed-up recovery of NPAs
- To avail economies of scale, broader geographical coverage and better capital, a merger of major banks will take place soon
- A sum of Rs 2.6 lakh crore has been directed; for recapitalising the Public Sector Banks (PSBs)
- For Agricultural Reforms
- For farmers (who have less than 2 hectares of land) Rs. 6,000 will be provided per year directly to their bank accounts. This is going to benefit 12 crore small and marginal farmers.
- There is a 2% interest rebate to the farmers who are engaged in fisheries and animal husbandry.
“This is just a trailer of the budget, which after elections will take India on the path to development”. The words of Prime Minister on the interim budget are an assurance that something more is about to come for middle-class and lower-class societies of the country. Benefits of the interim budget are yet to be reaped entirely, however, it still does promise that the revered ‘Acche Din’ might just be around the corner.
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