BUDGET  –  2019

 INTERIM UNION BUDGET, 2019

INCOME TAX

1.There is no change in Income-Tax Slab Rates.

2. Section 87A ‘Relief to tax payers’ is being amended to provide relief to the individual taxpayers by increasing the maximum amount of tax rebate to Rs. 12500/- from existing Rs. 2500/- for the taxpayers having total income up to Rs.5 Lakhs, instead of existing Rs. 3.50 Lakhs. No relief would be available in case the total income of individual exceeds Rs. 5 Lakhs. (With effect from AY 2020-21)

  1. “Income from Salary Head “ Section 16 is being amended to increase the Standard Deduction from earlier Rs. 40000/- to Rs. 50,000/- per annum or actual salary whichever is lower in order to provide relief to salaried class persons.

2. “Income under head Capital Gain “ Section 54 is being amended to provide relief to taxpayers having long term capital gain up to Rs. 2 crores arising from transfer of a residential house, by affording the assessee a 1 time opportunity, at his option to utilize such amount for purchase or construction of two residential house in India instead of one residential house as currently provided.

3. “ Income from House Property “

Notional rent in respect of unsold inventory is not being charged to tax up to two years instead of one year from the end of financial year in which certificate of completion is obtained from competent authority.

wing him an option to claim nil annual value in respect of any two houses, declared as self-occupied, instead of one such house as currently provided.

4. “Deduction under Chapter VIA” The time limit is being extended under Section 80-IBA from 31st March 2019 to 31st March 2020 in order to avail deduction of 100 % of profits and gains derived from the business of developing and building housing projects.

5. “Tax Deduction at Sources”

Section 194A is being amended to increase the threshold limit for TDS on Interest Income, other than interest on securities, paid by banking company, cooperative society or a post office from existing Rs. 10,000/- to Rs. 40,000/-

Section 194I is being amended to increase the threshold limit for TDS on rental Income from existing Rs. 1,80,000/- to Rs. 2,40,000/-

OTHER AREA

1. The Government have now ensured 10% reservation in educational institutions and Government services for poor. In these institutions, around 25% extra seats (approximately 2 lakh) will be provided.

2. To provide food grains at affordable prices to poor and middle class, about Rs. 1,70,000 crores were spent in the year 2018-19. Rs.60,000 crores are being allocated for MGNREGA in BE 2019-20. Additional amount would be provided if required.

3. 22nd AIIMS has to be opened in Haryana.

4. Approval has to be given to PM- Kisan Yojana

5. 6,000 per annum has to be given to every farmer having upto 2 hectare land. which would be made effective from 1st December 2018. (Amount will be transferred in 3 installments)

6. Increased the allocation for Rashtriya Gokul Mission to Rs.750 crore in the current year itself.

7. “Rashtriya Kamdhenu Aayog” is to be set up to upscale sustainable genetic upgradation of cow resources and to enhance production and productivity.

8. 2% interest subvention for farmers pursuing animal husbandry and also create separate department for fisheries.

9. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.

10. Tax free Gratuity limit increase to Rs. 20 Lakhs from Rs. 10 Lakhs.

11. Bonus will be applicable for workers earning Rs. 21000 per month.

12. The scheme, called Pradhan Mantri Shram Yogi Mandhan, will provide assured monthly pension of Rs. 3,000 with contribution of Rs. 100 per month for workers in unorganized sector after 60 years of age.

13. Our government delivered 6 crores free LPG connections under Ujjawala scheme.

14. GST-registered SME units will get 2% interest rebate on incremental loan of Rs. 1 Crore.

15. The Government announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties.

16. Defence Budget will be crossing Rs. 3,00,000 crore in 2019-20. If necessary, additional funds would be provided.

17. The Government will make 1 lakh villages into Digital Villages over next five years.

18. Single window for approval of India film makers.

19. Aadhaar is now near universally implemented. This has helped ensure the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemen.

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