Interim Finance Minister Piyush Goyal has presented the much awaited Interim Budget also known as a Vote on account Budget. The Major highlights of the Interim Budget are as follows:
CHANGES IN TAX RATES
- Individual taxpayers with annual income up to Rs. 5 lakh to get full tax rebate.
- Standard deduction of Rs. 40,000 has been raised to Rs. 50,000.
- No tax on notional rent on second self occupied house.
- No TDS on house rent upto Rs. 2.4 Lakhs.
- TDS limit hiked from Rs 10,000 to Rs 40,000 on post-office savings.
- Capital Gains exemption under Section 54 to be available on two house properties.
- Group of Ministers looking at ways to ease GST burden on homebuyers.
- All interest income above Rs. 40,000 from Bank deposits will now get taxed and not Rs. 10,000.
ECONOMY & ALLOCATIONS
- FY20 fiscal deficit target set at 3.4 percent.
- Expenditure target for FY20 set at Rs 27.84 lakh crore.
- Capital expenditure for FY20 set at Rs 3.36 lakh crore.
- FY19 fiscal deficit pegged at 3.4 percent of GDP; current account deficit at 2.5 percent of GDP.
- Divestment target of Rs. 80,000 Crores.
- Focus on debt consolidation along with Fiscal consolidation.
- Allocation for North Eastern Region proposed to be increased to Rs. 58,166 crores in this year, a 21% rise over the previous year.
- Railway Capex increased from Rs. 53,060 crores in FY 19 to Rs. 64,586 Crores in FY 20.
- Defence Budget increased to Rs. 3 lakh Crore.
- Indian Railway Budget outlay Rs. 1,48,658 Crores.
- will set up “Rashtriya Kamdhenu Aayog” to look after the welfare of cows, including genetic improvements and sustainable development.
- 9 priority areas have been identified; National Artificial Intelligence portal to be developed soon.
- Mahatma Gandhi National Rural Employment Guarantee Program’s allocation increased to Rs. 60,000 Crores.
- Placing an Indian astronaut in Space by 2022.
- Aspire to become $ 10 Trillion economy in next 8 years.
- Farmers with less than two hectares of land to be offered Rs 6,000 per year as direct transfer under PM Kisaan Samman Nidhi. The benefit will be transferred directly into the bank account of beneficiary farmers in three instalments of Rs 2,000 each. Around 12 crore farmers to benefit from the scheme. This scheme will cost the government around Rs 75,000 crore.
- 2% interest subvention (subsidy) to be given to farmers involved in animal husbandry activities via kisaan credit card scheme.
- All farmers affected by severe natural disasters to will continue to get 2% interest subvention (subsidy) and an additional three percent subsidy will be paid on timely payment of loans.
- Separate Department of Fisheries created, two percent interest subvention for those in fisheries.
- To provide Rs 750 crore in FY19 to support animal husbandry and fishing.
- Monthly pension of Rs 3,000 for workers in the unorganised sector to be paid out after retirement. Pension scheme to benefit 10 crore workers in the unorganised sector. Those who join at 18 years of age will have to contribute a mere Rs 55 per month. The government will contribute equal matching share in the pension account.
- Employees’ State Insurance eligibility cover limit has been raised to Rs 21,000 per month from Rs 15,000 per month.
- Gratuity limit increased from Rs 10 lakh to Rs 30 lakh.
- Workers who suffer grievous injuries will now receive Rs 6 lakh from Rs 2.5 lakh through Employee Provident Fund Organisation (EPFO).
- New Pension Scheme – Employees Contribution is 10%, government’s contribution increased from 10% to 14%.
- 22nd AIIMS hospital is going to be set up in Haryana.
- Single window clearance for film making to be made available to Indian Film makers.
- Anti – camcording provisions to be introduced to Cinematography Act to combat film Privacy.