The last budget of the current ruling government is presented on 01.02.02019, Mr. Piyush Goyal read the Budget, and started a speech with “sabke liye kuch Laya hun”.
Following are the Key highlights of same.
Government purposed Hiking of Income Tax Limit
1. For the Individual, HUF gross income Up to Rs.500, 000 -Full Tax rebates have been given.
(i.e if investment made in the specified saving scheme, and standard Deductions person having even higher income will not have to pay Income Tax)
2. Standard Deduction for the salaried person from Rs. 40,000 to Rs.50, 000.
3. Earlier Notional Rent required to pay for the more than 1 house held, now second House property also going to be exempt from the levy of notional rent termed as biggest tax relief for the middle-class Taxpayers.
4. TDS threshold on Interest received from Banks/Post office etc. are Increased up to Rs. 40,000 from the Previous Limit of Rs. 10,000.
5. TDS on rent, threshold limit exceed to Rs. 2,40,000 from the previous limit of Rs. 1,80,0000.
6. For Exemption on Capital Gain in section 54, the exemption increased for Investment in 1 residential house to 2 residential houses up to 2 Cr option available for only one time in Life Time.
7. Exemption to real estate Developers under section 80IBA has been extended for the next 1 more Year. i.e 31.03.2020.
8. For Real estate Developers Exemption period on vacant house property held as inventory is increased to 2 years from the earlier exemption of 1 Year.
9. The defense budget for the Year 2019-20 is more than Rs. 3 Lakh Crore.
10. with GST Council- Group of minister formed with the purpose to reduce the tax burden of Homebuyers.
11. Average monthly GST Collection increased to Rs.97,100 Crore per month during the current Year
12. Revised Fiscal Deficit for the Year 2019-20 is 3.4%.
13.Aim to reach 3% fiscal deficit by 2021
14. Rs.6000/per year to Kisan support scheme for small farmers.
15. Rs. 3000 per month pension scheme for the unorganized sector employees.
16. For the newly incorporated manufacturing units, there is tax rate fixed @ 25% irrespective of their turnover.
17. For all companies whose turnover up to Rs. 250 Crore, a lower tax rate of 25 % is applicable.
18. For working Employees:
a) Statutory bonus Limit increased to Rs. 7,000 per Year and eligibility salary limit increased to Rs. 21,000 per month
b) The government increased spending for the one rank, one pension scheme.
c) The limit for exemption of gratuity income receipt under section 10 (10) of Income tax act, 1961 increased to Rs. 30 Lakh from earlier Limit of Rs. 10 Lakh.
19. For Farmers: Under Kishan credit card scheme, a rebate of 2% interest is given further if payment is done on the due date then an additional rebate of 3% interest is also be given.
16. For the newly incorporated manufacturing units, there is tax rate fixed @ 25% irrespective of their turnover.
17. For all companies whose turnover up to Rs. 250 Crore, a lower tax rate of 25 % is applicable.
18. For working Employees:
a) Statutory bonus Limit increased to Rs. 7,000 per Year and eligibility salary limit increased to Rs. 21,000 per month
b) The government increased spending for the one rank, one pension scheme.
c) The limit for exemption of gratuity income receipt under section 10 (10) of Income tax act, 1961 increased to Rs. 30 Lakh from earlier Limit of Rs. 10 Lakh.
19. For Farmers: Under Kishan credit card scheme, a rebate of 2% interest is given further if payment is done on the due date then an additional rebate of 3% interest is also be given.
Overall budget seemed a very balanced one with the view of upcoming elections, more of rural, medium size industries, and middle-class persons based.
Full details will be published once the Budget Document get uploaded.
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