KEY HIGHLIGHTS OF UNION BUDGET 2019-2020
The 2019 Interim Budget was presented on 1 February by the Interim Finance Minister Piyush Goyal, Here are the Highlights of this year budget:-
Tax Related Changes:-
Income Tax Slabs will remain Same.
Tax Rebate Limit under 87A increased from Rs. 3.5 lakhs to Rs. 5 lakhs for taxpayers. The maximum limit of the tax rebate increased to Rs.12,500 from the present limit of Rs. 2,500.
The standard deduction of Rs.40,000 has been raised to Rs.50,000.
No tax on notional rent of second Self-occupied House under “Income from House Property” (up to two self-occupied house properties) to be considered for exemption.
The Tax Deducted at Source (TDS) u/s 194A 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.
The Tax Deducted at Source (TDS) u/s 194I threshold to be raised from Rs.1.8 lakh to Rs.2.4 lakh for the deduction of tax on rent.
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%.
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.
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.
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.