2019 Interim-Union Budget

Piyush Goyal’s financial budget.

Interim Budget 2019 was presented by Union Minister for Finance, Shri Piyush Goyal who was the first Chartered Accountant to present the budget before the Parliament on 1st February 2019.  The interim budget 2019 gives the farmers, labourers & middle class a big relief by offering them direct tax benefits and/or offering tax concessions.

INCOME TAX

  1. No tax on income upto Rs. 5 lakh. 

  2. Taxpayers with gross income upto Rs. 6.5 Lakh need not pay tax if they invest in provident fund & prescribed equities, shares or Life Insurance Premium. 

  3. Standard tax deduction for salaried persons increased from Rs. 40,000/- to Rs. 50,000/- 

  4. Interest income up to Rs. 40,000/- in post offices & banks made tax free.  This limit has been increased from the current Rs. 10,000/-. 

  5. TDS not to be deducted from Rent from Rs 1.8 lakh to Rs 2.4 lakh yearly. Benefiting the landlords who rent their houses. The budget has increased the limit for TDS on rent paid to the landlord by non - individuals i.e. corporates etc. This tax relief to those who depend on rental income

  6. The interim budget states that within 2 years Income Tax returns will be processed within 24 hours and refunds will be paid immediately.

 CAPITAL GAINS

 Currently, an individual can save tax on LTGC (Long Term Capital Gain) from the sale of a house property by investing in another house property or by constructing another house.

 According to the 2019 budget, it has been proposed to increase the benefit of LTGC arising from the sale of house property to two residential houses instead of one.

 An individual can avail this benefit only if the capital gains arising from the sale of the residential house property does not exceed Rs. 2 crore.

 Also, this benefit can be availed only one in a lifetime.

FOR WORKERS & FARMERS

  1. New Pradhan Mantri Shram Yogi Maandhan Yojana offers Workers in the unorganised sector Pension. The unorganised sector comprises of farmers and labourers who do not have a fixed job.Workers who earn less than Rs 15,000/- per month, will get a pension of Rs 3,000/- every month after retirement if they contribute Rs 100/- per month.  Govt. has allocated Rs. 500 crore for this scheme.

  2. Gratuity limit increased for workers to Rs. 30 lakh. 

  3. Farmers having upto 2 hectare of land will receive Rs. 6000 per year directly in their bank accounts in 3 equal instalments.  1st instalment of Rs. 2000/- for December 18 to March 19 (4 months) will be credited on or before 28th February 2019 in their bank accounts.

RURAL ALLOCATIONS

  1. Rs. 60,000 crore has been allocated for MNREGA

  2. Under Gram Sadak yojana Rs.19,000 crore allocated for construction of rural roads.

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