Union Budget 2019 Heightlights: Budget to boost middle class, poor, farmers

Published Date - 02 February 2019 01:40:48 Updated Date - 01 March 2019 04:45:45

The bigger gainers are all individuals with net taxable income up to Rs 5 lakh who will not have to pay any tax as per Budget 2019 proposals. 
Main gain from Budget 2019 proposals for salaried and pensioners is reduction in tax burden due to the proposed increase in standard deduction from earlier Rs 40,000 to Rs 50,000. The Budget 2019 also proposes rebate for all those with taxable income upto Rs 5 lakh. Tax on deemed rent from second vacant house payable by house owners has also been abolished.
FM Piyush Goyal announced big cheer for the salaried and middle-class taxpayers. In a huge boost, taxpayers with income up to Rs 5 lakh will get full rebate, standard deduction was raised by Rs 10,000, capital gains benefit for those selling a house property and reinvesting the proceeds, huge jump of Rs 30,000 in the threshold for TDS on bank interest and income from post office investments. Even the TDS threshold on rental income was hiked substantially from Rs 1.8 lakh to Rs 2.4 lakh, thereby giving relief to landlords. The capital gains benefit on house property and TDS threshold will give a boost to the real estate market.

The FM pegged the fiscal deficit at 3.4%, citing the income support to farmers announced in the budget. Piyush Goyal announced an interest subvention scheme for GST registered SMEs taking a loan A big income support scheme for farmers by the name of Pradhan Mantri Kisan Samman Nidhi, a pension scheme for unorganised workers called Pradhan Mantri Shram Yogi Mandhan, financial support for cos and fisheries are the key highlights of the big budget push towards rural and poor. In his speech in Lok Sabha, finance minister Piyush Goyal announced annual support of Rs 6000 per year for farmers holding land below 2 hectares. The reach out to unorganised workers happened in the form of a pension scheme where the government proposes to provide Rs 3000 per month to workers over the age of 60 with a monthly contribution of Rs 100.

The gratuity limit has been pegged at Rs 30 lakh. There is a 2% interest subvention for farmers engaged in fisheries and animal husbandry. On the jobs front, the finance minister said that a fast-growing economy is creating jobs based on EPFO data and that sectors like solar have created lakhs of jobs. The FM illustrated the achievements of the Narendra Modi  led government by specifying gains in mobile connectivity, rural roads, digital infrastructure in villages.

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