Highlights of the 2019 Union Budget

On 1st February, 2019 (Friday), the Union Finance Minister, Piyush Goyal has declared the Union Budget of 2019 on the eve of the election. This time the budget has been a friendly one for the middle-class people, the farmers and people working in the unorganized sector.

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Let’s take a quick look at the budget 2019 highlights:

• Income Tax Relief

• Tax relief till Rs. 5 lakhs income for individual tax payers
• Increase in standard deduction to Rs. 50,000 for the salaried class

• Tax Exemptions on Investments

• People earning 6.5 lakhs per year will not have to pay taxes provided they invest in provident funds
• Tax will not be charged on interest income up to Rs. 40000 in banks and post offices
• TDS for home increased up to Rs. 2.4 lakhs

• Other Tax Related Reliefs

• The income tax returns has to be processed within 24 hours and the returns has to be paid immediately

• For Farmers

• Support ensured to marginal and small farmers for income up to Rs. 6000
• Farmers with 2 hectares of land will get Rs. 6000 every year in three installments
• Kamdhenu scheme for animal industry

• GST

• Group of ministers to suggest methods to lessen GST for home buyers
• Increase in direct tax collection from Rs. 6.38 lakh crore to Rs. 12 lakh crore
• Complete digitization of Indian customs
• GST to be collected in January 2019 that has crossed the level of Rs. 1 lakh crore

• Sops for Workers

• Unorganized sector workers are given Rs. 3000 pension each year
• Gratuity limit increased for workers to Rs. 30 lakh
• Allocation of Rs. 500 crore by the government for the New Pradhan Mantri Shram Yogi Maandhan Yojana for the unorganized sector

• Rural Allocation

• Rs. 60000 for the MNREGA
• Rs. 19000 allocated for the construction of rural roads under the scheme of Gram Sadak Yojana

• Defence Budget

• Increase in the defence budget to Rs. 3 lakh crores
• Government will provide additional funds to the defence sector if required
• Disbursement of Rs. 35000 crore for the OROP scheme

• Railways

• The operating ratio of railway seen as 96.2% in FY19 vs. 95% in FY20
• Railway Capex for FY20 set at record Rs 1.6 lakh crore

• Single Window Clearance for Filmmakers

• A single window clearance will be made available to filmmakers, anti-camcording provision to be introduced in the Cinematography Act to fight back piracy

• Nine Priority Sectors for Government

• To digitalize India that reaches out to every citizen
• Green and clean India
• Elaborating rural industrialization with modern technologies
• Clean rivers ensuring safe drinking water to all Indians
• Healthy India
• Oceans and coastlines
• Making India the Launchpad of the world
• Self-sufficiency in food and enhancing agricultural productivity by putting emphasis on organic food
• Minimum government with maximum governance

Conclusion

Therefore, the year ahead is going to bring some new developments. Also, the taxes on few sectors have been reduced. Let’s hope for the best.