On Friday, February 01, 2019; Finance Minister Piyush Goyal gifted tax benefits to middle-class salaried people through Budget 2019-20. This interim budget is the final budget from Modi government. Modi government presented six budgets including this interim budget. Some are saying this interim budget is to woo the middle-class salaried people for the forthcoming Loksabha Elections. Hence, it is Budget 2019-20: Tax Benefits to Middle-Class Salaried People.
Modi shot six sixers in six balls in the last over of this tenure. These are:
- अन्नदाता को धन
- सेना को जोश
- श्रमिक को मान दान
- नौकरीपेशा को तौफा
- पेंशनर्स की बचत
- आम जनता को ख़ुशी
This interim budget 2019-20 is all about “Jai Jawan, Jai Kisan, Jai Aam Insaan” !!!
Budget 2019-20: Tax Benefits to Middle-Class Salaried People:
1) Income Tax Exemption on an annual income of 5.00 Lakhs:
If you are an individual taxpayer, and you earn an annual income up to Rs.5 lakhs, you will get a full tax rebate. Rest of the tax slab will remain the same. However, an individual with a taxable annual income above Rs.5 lakhs will continue to pay 5% on the taxable income between Rs.2.5 lakhs and Rs.5 lakhs.
2) Rise in Standard Deduction:
Standard Deduction is raised from Rs.40,000.00 to Rs.50,000. In previous your’s budget, standard deduction took place of free transport and medical allowance.
3) Benefits to Pensioners: Changes in TDS:
Now, pensioners will not pay any TDS on house rent up to Rs.2.4 lakhs per year. And, they will also not pay any TDS on the interest amount earned from a bank or a post office up to Rs. 40,000, which was earlier Rs.10,000.
4) Hike on Defence Budget – Defence Budget is more than 3 Lakh Crores:
For the first time, the defence budget has been kept above 3 lakh crores.
5) An increment in Gratuity Limit:
Gratuity Payment limit is now Rs.30 Lakhs, which was Rs.10 Lakhs earlier.
6) Direct Income to Farmers:
Under Pradhan Mantri Kisan Yojana, the farmers those who have less than 2 hectares of land, will get Rs. 6000 per year. This amount will be given in three installments. Rs.2000 every four months.
As per Finance Minister, loan waiver will not help the farmers in long run. Hence, here is the solution for the farmers those who are severely affected by natural calamities. They will get 2% interest subvention and an additional 3% interest subvention upon timely repayment.
7) Pension to Unorganized Sector Workers:
Under Pradhan Mantri Shram Yogi Maan Dhan Yojana, after the age of 60 years, unorganized sector workers will get Rs.3,000 per month as pension.
Here are the other Tax Rebate Measures:
- With additional deductions such as on home loans, persons with even higher income will not have to pay tax.
- A total tax benefit of Rs 18,500 crore to an estimated 3 crore taxpayers.
- Exempt levy of income tax on notional rent for the second self-occupied house.
- Affordable housing tax benefit extended for one more year