The 2019 Budget by the Modi Government is referred to as his second surgical strike!!
The interim Budget 2019 announced by Finance Minister Piyush Goyal was a pleasant surprise for the middle class families and farmers. This budget announced in the close proximity of the coming up elections is a promise given by the government to ensure the plight of the middle class tax payers who are the core voting members for the government.
Below is the budget impression which has positively impacted the people at large.
- There is no income tax levied on income uptil Rs.5 lakh annually. Till now the non taxable amount was Rs 2.5 lakh. The budget will be offering a whooping income tax benefit of benefit of Rs 18,500 crore to the middle class tax payers.
- Also with this income tax rebate individuals who have an income upto 9.75 lakh can evade the taxes by making investments under section 80C, Provident funds, health insurance, NPS savings, interest on home loans and more.
- The limit for Tax Deducted at source for bank and post office deposits has been increased from Rs. 10000 to Rs. 40000. This initiative is taken to help small depositors and the non working spouses.
- Also the tax deducted at source for house rent has increased from Rs. 1,80,000 to Rs. 2,40,000 which is a saving majorly for persons depending on rental income.
- The main income tax relief for a salaried individual is the standard deduction which is increased from Rs. 40,000 to Rs. 50,000 of their gross salary. This will again lead to a tax benefit of Rs. 4,700 crore to more than 3 crore salaried people.
- The agrarian class is one of the most important segments of the Indian society. The biggest promise of the 2019 Budget is the yearly income aid of Rs. 6000 directly transferred to marginal and small farmers’ account. This income tax sop will benefit 12,500 crore farmers.
- The budget also promises a monthly pension of Rs. 3000 with a contribution of Rs.100 per month for workers in the unorganized sector after the age of 60 years.
These are few of the major implementation in the interim Budget 2019. Apart from this the other benefits include:
- An interest subsidy of 5% is given to farmers running animal husbandry and fisheries.
- Rs 1330 crore is planned for the commissioning of protection and empowerment of women, and also women benefit largely from the Ujwalla Yojna Scheme wherein the government will be providing 8 crore free LPG connections.
With this Budget it is not only the farmers and the middle class crowd that has benefited also there is a ray of hope for the real estate sector, the Micro Small and Medium Enterprise (MSME).
There are more such benefits being offered by the Government in the interim budget which though will come into effect if the government stays in the upcoming Lok Sabha elections.
On the whole, would conclude that the most awaited 2019 Budget will be the most promising once implemented. The most important sectors of the Indian society are taken on priority basis in this budget giving them an opportunity to invest more in savings through the announced income tax sops and rebates.