The Finance Minister Piyush Goyal presented the Union budget of 2019 after a lot of waiting in the Lok Sabha on Friday. Piyush Goyal was appointed the interim finance minister on 23rd of January as Arun Jaitley is undergoing treatment in the United States. Here are some of the Union Budget highlights:
- Individual taxpayers having an annual income up to 5 lakh rupees would get full tax rebate.
- Individual having a gross income up to 6.5 lakh rupees will not require paying any tax while making investments in provident funds and prescribed equities.
- The standard tax deduction for salaried persons will be raised from 40,000 to 50,000 rupees.
- The TDS threshold on rental income would be raised from 1.8 lakh to 2.4 lakh rupees.
- According to the finance minister around 3 crore middle class tax payers would receive a tax exemption due to this measure.
- The benefit of roll over of capital tax gains require an increment from investment in one residential house to that in two residential houses, for a tax payer having capital gains of around 2 crores; this can be exercised once in a lifetime.
- The union budget highlights also includes benefits under Sec 80(i)BA bring extended for one more year, for all the housing projects approved till end of 2019-2020.
- Piyush Goyal said that we are on the attempt to become a 5 trillion dollar economy in the next five years, we aspire to become a 10 trillion dollar economy in the next eight years.
- Businesses having less than Rs. 5 crore annual turnover that comprises over 90% of GST payers, will be allowed to return quarterly returns.
- Direct tax collections has increased from 6.38 lakh crore rupees in 2013-14 to almost 12 lakh crore rupees; tax base up has increased from Rs 3.79 crore to Rs 6.85 crore. Reports say of having 99.54% returns have been accepted without any scrutiny. In January 2019, the GST collections has crossed 1 lakh crore rupees.
- GST has gone through a continuous reduction, which has resulted in relief of 80,000 crore rupees to consumers; most items of daily use for poor and middle class now fall in the 0%-5% tax bracket.
- There is two per cent interest subvention on loan of 1 crore for GST registered MSME units.
- GST is now undoubtedly the biggest taxation reform implemented since Independence; through the process of tax consolidation, India became one common market; inter-state movements became faster through system of e-way bills, improving Ease of Doing Business.
- The Union budget highlights also focuses that within almost two years, almost all assessment and verification of IT returns will be done electronically by the use of an anonymized tax system without any intervention by tax officials.
- He also said that the cost of data and voice calls in India is now possibly the lowest amongst all other countries; companies manufacturing mobile and mobile part have increased from 2 to 268.
- The process of Single window clearance for film-making to be made available to Indian filmmakers and also anti-camcording provision would be introduced to Cinematography Act to combat film privacy.
- The allocation for North Eastern region has been proposed to be increased to Rs 58,166 crore in this year which would be a rise of over 21% from that of the previous year.
- There has been an increase in allocation for Rashtriya Gokul Mission to 750 crore in current year.
- It has been permitted a two per cent interest subvention to farmers pursuing animal husbandry and fisheries.
- Goyal also added to have an urgent action to increase hydrocarbon production to decrease imports; change in bidding procedure and exploration procedure being implemented.
- The Committee under NITI Aayog to be set up to identify and denotify nomadic and semi-nomadic communities; and also Welfare Development Board to be set up under Ministry of Social Justice and Empowerment for welfare of these hard-to-reach communities and for tailored strategic interventions.
- The introduction of Mega Pension Yojana, namely Pradhan Mantri Shram Yogi Mandhan, would provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for all workers in unorganized sector after the age of 60.
- Under the scheme of Pradhan Mantri Kisan Samman Nidhi, 6000 rupees per year for each farmer, in three installments, would be transferred directly to farmers’ bank accounts, for farmers who have less than 2 hectares land holding which would benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore.
- The 4R approach has been implemented to ensure clean banking -which includes Recognition, Resolution, Recapitalization, Reforms.
The finance minister laid out a vision for 10 most important dimensions in 2030, that includes job creation, physical and social infrastructure building, pollution-free nation and clean rivers.
The union budget scheme is a try to help all the citizens of the country and think of the country’s welfare. The union budget highlights also includes introduction of Pradhan Mantri Kisan Samman Nidhi scheme. This is a historic decision to help the farmers and also the middle class tax payers.