BUDGET 2019: Income Tax exemption limit raised to ₹5 lakh

New Delhi: Finance Minister Piyush Goyal presented the interim budget for 2019 which focused on increasing the income limit for tax exemption to five lakh rupees and on the development of farmers, unorganised workers, health and infrastructure. A whopping amount of more than three lakh crore rupees for defence and more than one lakh crore rupees for internal security provisioned in the interim budget. Also, farmers with land of two hectors would receive six thousand rupee payout yearly under the ‘Kisan Samman Nidhi Yojana’. A wave of joy spread across the Indian share market after the budget. Furthermore, the industrial sector has also welcomed this interim budget for 2019.

The Interim Budget was announced against the backdrop of forthcoming Lok Sabha elections. Earlier, media and finance experts had forecast the possibility of Finance Minister Piyush Goyal increasing the limit for income eligible for tax exemption. Nevertheless, the Finance Minister has delivered a pleasant shock to the countrymen by taking this limit up to ₹5,00,000, making individuals within the range to receive a full rebate. Additionally, considering an investment of ₹1,50,000 on the total income up to ₹6,50,000 would not be required to pay any taxes, announced Finance Minister Piyush Goyal. Albeit, the income tax on incomes above five lakh remains unchanged. Whereas, the gratuity receipt amount up to thirty lakh rupees made tax free which is being welcomed by the middle class.

The ‘Kisan Samman Nidhi Yojana’ was announced under which the farmers who own farmland up to two hectors would receive a six thousand rupees assistance per year. A fund of seventy-five thousand crore rupees is reserved for this purpose. The amount would be provided to the farmers in three equal installments every year. Nearly 12 crore farmers would receive benefits due to the scheme.

The provision for farmers received criticised as not being sufficient. Nevertheless, other arrangements have also been made for farmers in the budget while independent provisions have been included in the budget to boost livestock production, the fishing industry as well.

A ‘Rashtriya Kamdhenu Aayog’ was declared, and 750-crore rupees provisioned for Rashtriya Gokul Mission (RGM).

For unorganised workers, a minimum of three thousand rupees as pension after the age of sixty years would be assigned under the ‘Pradhan Mantri Shram Yogi Mandhan Yojana’. The workers from the unorganised sector can opt for the state-run benefit by depositing one hundred rupees a month. At the same time, the government would simultaneously participate in the scheme by contributing the same amount every month. About ten crore unorganised workers could be beneficiaries under the plan. Simultaneously, sixty thousand crore rupees are provisioned for Mahatma Gandhi National Rural Employment Guarantee Act (NREGA). One lakh seventy thousand crore rupees have been announced for making available ration at a meagre rate for small and marginal farmers.

 

Budget, Income Tax, Piyush goyal, agriculture, tax exemptionFOR FARMERS
• Every year farmers owning a small piece of land up to 6 hectors to receive, ₹6,000 directly into their accounts under the ‘Pradhan Mantri Kisan Yojana’.
• A provision of ₹75,000 crore for the agricultural sector.
• An amount of ₹750 crore rupees for ‘Rashtriya Gokul Mission’ for promoting of indigenous cows.
• Establishment of the ‘Rashtriya Kamdhenu Aayog’.
• Farmers to receive 2 per cent interest returns for livestock production and fishery.

TAX STRUCTURE…
• Individual tax payer’s yearly income up to five lakh exempted from tax; 3 crore citizens to be benefited.
• Loan limit on bank and post deposits raised from ₹ 10,000 to ₹40,000 rupees.
• Tax deductions on house rent limit raised to ₹2,40,000.
• A proposed hike in standard deductions limits from ₹40,000 to ₹50,000.

RAILWAY…
• Provision of ₹64,500 crore.
• Commencement of the semi-high speed train, ‘Vande Bharat Express’’.

OTHERS

• Provision of ₹58,166 crore for North East India.
• Provision for North Eastern states increased by a staggering 21 per cent.
• Container cargo transport to commence through the Brahmaputra River.
• The announcement of ₹4,817 crore for strategically important Andaman – Nicobar Islands.