This budget presented on 5th July 2019 gives a gift, a basic need to all middle class through various ways. Today a common person needs his own house, his own car and money to fuel the life earning. Budget 2019 targets a common person with basic need and target also common people life in a way that life of every common person will be happy with these things.
Following is the way by which car and house has been given to people by amending the Income Tax Act 1961. Following is the amendment with relate to house and car in Income Tax Act, 1961.
1. House– by inserting a section 80EEA in income Tax ACT by govt, now people are eligible for extra interest deduction of ₹ 1.5 Lacs under income Tax if he/she purchase a house and take loan buying that house. Various condition is put in the section to give this basic need to a genuine common person which is as follow:
Total interest of ₹ 3.5 is eligible as duction under income tax if any person buys a house for the purpose of residency first time. However above condition is satisfied while taking the loan. Now total deduction of ₹ 5 Lacs is available to any person who take loan and pay total ₹ 5 Lacs as EMI as ₹3.5 Lacs for interest and ₹ 1.5 Lacs for principle.
2. CAR– by inserting a section 80EEB in income Tax ACT by govt, now people are eligible for interest deduction of ₹ 1.5 Lacs under income Tax if he/she purchase an electrical car and take loan for buying that car. Various condition is put in the section to give this basic need to a genuine common man which is as follow:
Govt has emphasized on buy of electrical vehicle. This will also remove pollution in our country if all vehicle will be electrical type. Further this deduction is for all person whether he/she do a either business or job. Earlier no deduction of this type is available in income Tax Act to give this deduction on buying an own vehicle for personal purpose.
3. Money– Govt has allocated ₹ 5000 Crore for MUDHRA loan specially for woman entrepreneur. This loan will be given specially to woman category. For every verified women SHG (Self-Help Groups) member having a Jan-Dhan Bank Account, an overdraft facility of Rs 5,000 shall be allowed. One woman in every SHG will also be made eligible for a loan up to Rs 1 lakh under the MUDRA scheme.
Budget 2019 was presented in parliament two times. First time in Feb 2019 an interim budget were passed to give a common person need through changing the income tax law. Second time in July 2019 a final budget were present to give a boost in life of common person.