The interim budget proposed by Finance Minister Piyush Goyal has disappointed many taxpayers who were expecting income tax exemption threshold to be increased.
Instead, the Narendra Modi-led government has proposed a full rebate on net taxable income up to Rs five lakh per annum. Despite the move, people who have an annual income of over Rs 10,00,000 have room to pay no income tax at all.
The key highlights of the Interim Budget 2019-20 presented Parliament are as follows:
- Individual taxpayers with annual income up to INR 5 lakhs to get full tax rebate.
- Defence budget to cross Rs 3,00,000 crore for the first time ever
- Indian filmmakers to get access to Single window clearance as well for ease of shooting films
- 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs
- Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs
- Individuals with gross income up to INR 6.5 lakhs will not need to pay any tax if they make investments in provident funds and prescribed equities.
- Standard tax deduction for salaried persons rose from INR 40,000 to INR 50,000.
- Tax deducted at source (TDS) threshold on rental income rose from INR 1.8 lakhs to INR 2.4 lakhs.
- The Government to make 1 lakh villages into Digital Villages over next five years
- Semi high-speed train, Vande Bharat Express to be launched
- 1 lakh digital villages for next five years
- Fund allocation increased to ₹ 58,166 crore to the Northeast region for infrastructure development. It is a 21% rise over last year.
- In Indian Cinematograph Act Anti-camcord regulations to be introduced in order to prevent piracy
- National Artificial Intelligence portal to be developed soon
- For small and marginal farmers there will be Rs 6,000 per year assured income support
- Kamdhenu scheme for animal husbandry
- Interest subvention of 2% to farmers who pursue fisheries jobs and animal husbandry through Kisaan credit cards.
- Farmers to get Rs 6,000 per year in three equal instalment those who have up to 2 hectare of lands
- Ways will be suggested by Ministers to reduce GST for Home buyers
- In 2019 January GST collections has crossed Rs One lakh crore
- Businesses those who have less than less than Rs Five crore annual turnover, comprising over 90% of GST payers, will now be allowed to file quarterly returns.
Duty abolished on 36 capital goods