Union Budget 2019 Highlights

union budget 2019 highlights
union budget 2019 highlights

“The budget is not just collection of numbers, but an expression of our values and aspirations.”

Budget 2019 was only a trailer for ‘New India’ to come. Union Budget came as a strong mandate of BJP government from 2014.

It has seen various structural reforms and also has reversed policy to restore country’s image.

This year the Interim Budget was presented by Piyush Goyal where he shared the previous statistics and also the schemes which were introduced in the past 5 years.

Mentioning the growth rate and improvements made by the government.

These are the certain highlights of the Union Budget 2019 which included the following :

  • Income tax to be exempted for individuals drawing an income of up to Rs.5 lakh.

  • The standard deduction of Rs.40,000 has been raised to Rs.50,000.

  • Rs.23,000 crore relief to be proposed through direct tax to offer relief to 3 crore taxpayers.

  • A person will not be required to pay any income tax if they draw a gross income of up to Rs.6.5 lakh and make investments in insurance, specified savings, and provident funds.

  • An assured yearly amount of Rs.6,000 to be provided to 12 crore small and marginal farmers under the PM-KISAN scheme.

  • The Tax Deducted at Source (TDS) threshold to be raised from Rs.10,000 to Rs.40,000 for interest which is earned on deposits in banks and/or post offices.

  • Tax exemption on notional rent on a second self-occupied house.

  • The Tax Deducted at Source (TDS) threshold to be raised from Rs.1.8 lakh to Rs.2.4 lakh for the deduction of tax on rent.

  • The tax benefits have been extended till 31 March 2020 for affordable housing.

  • The tax exemption period extended from 1 year to 2 years for notional rent on unsold inventories.

  • Rs.75,000 crore to be allocated for the financial year 2019-20 for the PM-KISAN scheme.

     The Union Budget Covers these sectors :

  • Economy: Interim Finance Minister Piyush Goyal said that India has already been validated as a hefty player in the global economy. It is also said to be one of the fastest growing economy. He added that for the current financial year, the Current Account Deficit (CAD) is to be cut down to 2.19% from 5.6%.

  • Anti-corruption: The Interim Finance Minister has also pitched in for more transparency with reference to the coal block auction and spectrum auction.

  • Housing and electricity: The Interim Finance Minister has claimed that the government has built 1.53 crore houses under the housing scheme. He added that under the Saubhagya Yojana, almost every house has been provided with an electricity connection for free.

  • Farming: The amount of Rs.6,000 which is to be allocated for the farmers, as mentioned above, will be transferred to their bank accounts in 3 instalments. It can be availed by any farmer who holds less than 2 hectares of land. An estimated amount of Rs.75,000 crore will be spent by the government for this scheme.

  • For the common man: The contribution for new pension schemes under the EPFO has been bumped up to 14% from 4%. The Interim Finance Minister also said that the gratuity limit has been to Rs.30 lakh from Rs.10 lakh.

  • For women: The Interim Finance Minister said that the central government is prioritising women. He claimed that 75% of the total women are enrolled as beneficiaries under the Pradhan Mantri Mudra Yojana. He added that the women are entitled to 26 weeks of maternity leave.

  • For workers belonging to the unorganised sector: Under the Pradhan Mantri Shram Yogi Mandhan pension scheme launched by the government, the workers who belong to the unorganised sector will be eligible to draw a pension of Rs.3,000 every month after the age of 60 years.

  • Defence: The defence budget for 2019 has been set at more than Rs.3 lakh crore. Thus, the defence budget has hit an all-time high. The Interim Finance Minister also added that Rs.35,000 crore has been allocated under the ‘One Rank One Pension’ scheme for the soldiers.

  • Income Tax: The interim Interim Finance Minister said that the direct tax collection has been increased from Rs.6.38 lakh crore to Rs.12 lakh crore. He also added that the income tax returns will now be processed within 24 hours and the refunds will be initiated accordingly.

This year the Budget unfolded the new dimensions for the country.

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