Poll-year Budget 2019-20: Full tax rebate for income up to Rs 5 lakh

Big relief for taxpayers as Finance Minister Piyush Goyal announced that individual taxpayers having annual income up to 5 lakhs will get full tax rebate now. As many as three crore taxpayers will be benefited with the decision.

The interim Budget 2019-20 was the last budget of the Modi government ahead of the general polls. Finance Minister Piyush Goyal presented the interim budget in the Parliament. It is pertinent to mention that Goyal was given additional charge of the Finance Ministry in the absence of Arun Jaitley, who is in US for medical treatment.

12:46 PM: Union Minister Piyush Goyal concluded his Budget speech

12:34 PM: Individual taxpayers having annual income up to Rs 5 lakh will get full tax rebate, said Goyal, adding that individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities

12:30 PM: Rs 1 crore loan can be obtained under 59 minutes, said Goyal while presenting the interim Budget.

12:07 PM: Within nearly two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by officials, said the Finance Minister

12:00 PM: Piyush Goyal announced that a single window clearance for filmmaking will be made available to filmmakers. Anti-camcording provision will also be introduced to Cinematography Act to fight piracy

11:56 AM: Rs 35,000 crore disbursed for soldiers under ‘One Rank One Pension’. There has been substantial hike in military service pay, said Goyal in budget speech.

11:49 AM: A pension scheme, Pradhan Mantri Shram Yogi Mandhan announced for workers in unorganized sector. Under the scheme, assured monthly pension of Rs 3,000 per month, with the contribution of Rs 100 per month, for the workers after 60 years of age, said Goyal in Budget speech.

11:35 AM: Over 6 crore free cooking gas connections have been provided under the government’s Ujjwala Yojana scheme aimed at providing LPG to poor households: Goyal

11:30 AM: Under the Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 per year for each farmer will be credited in three instalments. The amount will be transferred directly to bank accounts of farmers with less than 2 hectares landholding. As many as 12 crore small and marginal farmers will be benefited with the scheme.

11:20 AM: Current account deficit is seen at 2.5% this year, said Goyal.

11: 14 AM: Inflation in December 2018 was 2.1% and fiscal deficit has been brought down to 3.4% in the revised estimate of 2018-19, said Goyal in interim budget speech

11:08 AM: “I can confidently say, India is solidly back on track and marching towards growth and prosperity,” said Goyal.

11:03 AM: Finance Minister Piyush Goyal began his Budget 2019 speech.

10:52 AM: Union Cabinet approved the interim Budget 2019-20.

10: 40 AM: Wearing black dress MPs of Telugu Desam Party (TDP) protested against the central government in Parliament premises ahead of the presentation of the interim Budget 2019. They demanded special category status for Andhra Pradesh.

image credit: ANI

10:06 AM: “I believe investment in Railways will certainly be increased,” said Manoj Sinha, Minister of State for Railways while speaking to ANI

9:55 AM: Finance Minister Piyush Goyal arrived at the Parliament with the Budget briefcase. He will present the interim Budget 2019-20 at 11 am following the Cabinet meeting.

Here are other highlights of the Interim Budget for 2019-20:

1. Within 2 years, tax assessment will be done electronically

2. IT returns processing in just 24 hours

3. Minimum 14% revenue of GST to states by Central government

4. Custom duty abolished from 36 Capital Goods

5. Recommendations to GST Council for reducing GST rates for home buyers

6. Full rebate up to Rs 5 lakh annual income after all deductions

7. Standard deduction increased from Rs 40,000 to Rs 50,000

8. Exemption on tax on second self-occupied house

9. Ceiling Limit of TDS u/s 194A increased from Rs 10,000 to Rs 40,000 for women

10. Ceiling Limit of TDS u/s 194I increasedd from Rs 180,000 to Rs 240,000

11. Capital tax Benefit u/s 54 increased from investment in one residential house to two residential houses.

12. Benefit u/s 80IB increased to one more year i.e. 2020

13. Benefit given to unsold inventory increased from one year to two years

Other Areas

14. State share increased to 42%

15. PCA restriction abolished from 3 major banks

16. 2 lakh seats will increase for the reservation of 10%

17. Rs 60,000 crore for MGNREGA

18. Rs 1.7 lakh crore to ensure food for all

19. 22nd AIIMS to open in Haryana

20. Approval has to be given to PM Kisan Yojana

21. Rs 6,000 per annum to be given to every farmer having up to 2 hectare land. Applicable from September 2018. Amount will be transferred in 3 installments

22. National ‘kamdhenu ayog’ for cows. Rs 750 crore for National Gokul Mission

23. 2% interest subvention for farmers pursuing animal husbandry. Creation of separate department for fisheries.

24. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.

25. free gratuity limit increased to Rs 20 lakh from Rs 10 lakh

26. Bonus will be applicable for workers earning Rs 21,000 monthly

27. Pradhan Mantri Shram Yogi Mandhan will provide assured monthly pension of Rs 3,000 with contribution of Rs 100 per month for workers in unorganized sector after 60 years of age.

28. Our government delivered 6 crore free LPG connections under Ujjawala scheme

29. 2% interest relief for MSME GST registered person

30. 26 weeks of Maternity Leave to empower the women

31. More than Rs 3 lakh crore for defence

32. One lakh digital villages in next 5 years

33. Single window for approval of Indian filmmakers.