HIGHLIGHTS OF INTERIM BUDGET 2019 | CAP CLASSES

Hi friends!!!

Good Evening. Union Finance Minister Shri Piyush Goyal has presented budget in parliament today. The Election-eve budget has showered boons on the millions of middle class, farmers and employees of unorganized sector.

·      Income up to Rs. 5,00,000 is exempt from tax.

·   Farmers owning up to 5 hectares of land will get income support of Rs. 6,000 per annum.

·   Employees working in unorganized sector to get Rs. 3,000 pension per month.

The highlights of today’s budget are as follows:

Highlights relating to Income Tax

• One of the biggest relaxation for tax payers in the initial slabs is that, no Income tax on income up to Rs. 5,00,000. Considering the deduction available for investments in provident fund and other prescribed equities, it is Rs. 6,50,000 effectively. Millions of tax payers are benefitted with this. That means, individuals with gross total income up to Rs. 6,50,000 will not need to pay any tax.  
• TDS threshold for home rent increased from Rs. 1,80,000 to Rs. 2,40,000.
• Interest income up to Rs. 40,000 in post offices and banks made tax free (previously it is Rs. 10,000)
• Capital gains tax exemptions under Section 54 to be available up to Rs. 2,00,00,000.
• Capital gains exemption to be available on 2 house properties.
• Income tax relief on notional rent from unsold houses extended to 2 years from 1 year.
• Income Tax returns to be processed within 24 hours and refunds will be paid immediately.
• Within nearly two years, almost all assessment and verification of IT returns will be done electronically without any manual intervention.
• Direct tax collections increased from Rs 6,38,000 crores in 2013-14 to almost Rs 12,00,000 crores;

Highlights relating to Goods & Service Tax:

• ·         Group of Ministers to suggest ways to reduce GST for house buyers.
• ·     Businesses with less than Rs 5 crore annual turnover will be allowed to file quarterly returns. Over 90% of GST payers are eligible to avail this benefit.
• ·         Government abolishes duties on 36 capital goods 
• ·         GST collections in January 2019 has crossed Rs 1,00,000 crores 

Shower of sops on farmers & workers in unorganized sector:

• Rs 6,000 per year assured income support for small and marginal farmers
• Farmers having up to 2 hectare of lands will get Rs 6,000 per year in three equal installments. The scheme will be effective from December 1, 2018.
• Farmers affected by natural calamities to get 2% interest subvention and additional 3% interest subvention upon timely repayment
• 2% interest subvention to farmers who pursue animal husbandry, fisheries jobs through Kisaan credit cards
• Kamdhenu scheme for animal husbandry
• Rs 3,000 per year pension for unorganised sector workers
• New Pradhan Mantri Shram Yogi Maandhan Yojana for unorganised sector workers with income up to Rs 15,000 per month.
• Beneficiaries will get Rs 3,000 per month pension with a contribution of Rs 100 per month after retirement. Govt allocates Rs 500 crore for the scheme
• Gratuity limit increased for workers to Rs 30,00,000.

Fiscal Deficit:

•  For FY19, government has revised the fiscal deficit target to 3.4 percent in FY 19. Fiscal deficit for 2019/20 estimated at 3.4 percent of GDP.
•  Government's stated commitment earlier was to bring down the fiscal deficit to 3.1 percent of GDP by the end of March 2020, and to 3 percent by March 2021
•  Current account deficit at 2.5% of the GDP

ALLOCATIONS AND SOCIAL SCHEMES:  

• Rs 60,000 crores for Mahatma Gandhi National Rural Employment Guarantee Act.
• Rs 19,000 crores allocated for construction of rural roads under Gram Sadak yojana
• Govt increases defence budget to over Rs 3,00,000 crore. Additional funds will be allocated based on the need.
• Railway's operating ratio seen 96.2% in FY19 Vs 95% FY20.
• Railway capex for FY20 set at record Rs 1.6 lakh crores
• There is not a single unmanned railway crossing on the broad gauge in India.
• Government to build 1 lakh digital villages
• For the welfare of farmers and for doubling their income, historic decision was taken to increase MSP by 1.5 times the production cost for all 22 crops
• To ensure cleaner fuel and health assurance, we embarked upon Pradhan Mantri Ujjwala Yojana, a programme to give 8 crore free LPG connections to rural households, 6 crore connections have been given already

State of Economy:

·         India is poised to become a $5 trillion economy in next 5 years, $10-trillion economy in the next eight years

• Black money: Committed to eliminating the scourge of black money; anti-black money measures taken have brought an undisclosed income of about 1.30 lakh crore rupees
• Rs. 3.38 lakh shell companies were deregistered
• GST has been continuously reduced, resulting in relief of 80,000 crore rupees to consumers; most items of daily use for poor and middle class are now in the 0%-5% tax bracket
•  Fiscal deficit seen at 3.4 percent in FY 19 and Current account deficit at 2.5% of the GDP
• We have recovered Rs 3 lakh crore through Insolvency and Bankruptcy Code. Govt expects banks on the central bank's Prompt Corrective Action list to be removed soon.
• Indian GDP: Growth in the last 5 years has been higher than that by any other govt.
• Spent Rs 2.6 lakh crore in recap of PSU Banks
• Average inflation in UPA government was 10% and we have brought that down to 4 percent. Inflation in December 2018 was 2.1%. If we had not controlled inflation our families would have been spending 35-40 per cent more on daily use items
• Transparent auctioning of natural resources like coal and oil
• Domestic air traffic doubled in the last 5 years
• Over 90 percent of the country covered under sanitation coverage. People have made this a social revolution and i thank the 130 crore people of the country. 
• More than 5.45 lakh villages have been declared Open Defecation Free
• In the past, false promises were made but we have taken targeted expenditure on all dimensions
• Everybody will get electricity connection in the near future. We have provided 143 crore electricity bulbs to the poor
• Ayushman Bharat, the world's largest healthcare programme, was launched to provide medical care to almost 50 crore people, resulting in Rs 3,000 crore savings by poor families
• Lower costs of Stents & Knee implants have benefited people. Government has announced 14 new AIIMS since 2014
• Loans worth Rs 7.23 lakh crore have been given under Mudra Yojana
• Monthly mobile data consumption has increased 50 times in the last 5 years; cost of data and voice calls in India is possiblly the lowest in the world

Priority Sectors:

Nine priority sectors for government are identified to build next-gen infrastructure - physical as well as social;

1.  To build a Digital India that reaches every citizen;
2.  Clean and Green India;
3.  Expanding rural industrialization using modern industrial technologies;
4.  Clean Rivers - with safe drinking water to all Indians;
5.  Oceans and coastlines;
6.  India becoming launch pad of the world;
7.  Self-sufficiency in food and improving agricultural productivity with emphasis on organic food;
8.  Healthy India;
9.  Minimum Government Maximum Governance, with proactive, responsible and friendly bureaucracy

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