Finance Minister Nirmala Sitharaman presented the first budget of the second term of the Modi government on July 5, 2019. In this budget many proposals were projected and many major announcements were made. Many people had great expectations from this budget, hoping someone’s hopes were fulfilled and someone got disappointed. The ordinary citizens were exempted from the tax slab, but no such relief was given, but the tax was increased for the rich. Here we will summon the entire budget and will know which class has benefited from the budget and whose expectations are fierce.
Highlights of Budget 2019
Budget For The Middle Class People Get Relief
- The middle class hoped this time that tax exemption and tax slab can get relief, but it did not happen.
- On the purchase of an electric vehicle, the announcement of the deduction of income tax on auto loans up to Rs 1.5 lakh was announced.
- The discount on home loan interest rates increased from 2 lakh to 3.5 lakh on buying a house for up to Rs 45 lakh in the budget.
The Increased Responsibility of The Rich
- The well-to-do rich people have not been given relief, but on the annual income of Rs 2-5 crore, there will be an additional tax of 3% and 7% more tax on annual income of more than Rs 5 crore will be charged.
- To withdraw the amount of more than 10 million rupees in 1 year from the bank, 2 percent TDS will be charged, after deduction of more than Rs. 1 crore, cut 2 lakh rupees in tax.
- No separate charging or MDR will be taken from the customer on digital payment.
Price Increased on
- 1-1 rupees on petrol and diesel was increased
- Custom duty on gold and other precious metals has been increased from 10 percent to 12.5 percent.
PAN Card playing an important role -The Basis Details of the Pan Will Also Be Used
- Now the base of the PAN card will also be considered valid, i.e. if the PAN card is sought then the work will also be done from the base instead.
- PAN was essential for filling the first income tax, and now instead of the PAN, the base number will be able to work for income tax return.
Tax Relief to Companies
- Companies which make an annual turnover of up to 400 crores have been brought in the tax slab category of 25 percent.
- Earlier companies with annual turnover of Rs 250 crore used to come in Now 99.30 percent companies will come in the 25 percent corporate tax category and only 0.70 percent companies will remain untouched.
Special Schemes for Women in Budget 2019
- Women will get loan up to Rs 1 lakh under the money scheme.
- Women Entrepreneurship has been promoted with schemes such as Money Planning, Startup India, Standup India, Self Help Group (SHG) for women.
- Every woman, Verified SHG (Self Help Group) member who has a demat account, has an overdraft facility of Rs 5,000.
- Proposal for implementing the Women’s SHG Intensive Subvention Program in all districts for promoting women entrepreneurs.
Schemes for People below Poverty Line
- During the second phase of Pradhan Mantri Awas Yojana (Rural), during the year 2020 to 2021-22, the target is 1.95 crore. These homes will have toilets, electricity connections and gas facilities.
- In 2015-16, it took 314 days to build a house under this scheme, now it will be ready in just 114 days with the DBT platform.
Budget 2019 for Rural Region People
- 75 thousand skilled traders will be created in the Agro Rural Industry sector.
- Under the SFURTI scheme, more common facility centers will be set up in villages.
- The government will help the farmers in the area of bamboo, timber and renewable energy.
- Farmers will promote private businessmen for value addition in cropped crops.
- Now Anandata scheme will also be made an energy producer, for which many programs are being prepared.
- Under the Pradhan Mantri Gram Sadak Yojna, 1.25 lakh kms of roads will be built in the next 5 years in the third phase, which will cost Rs 80,250 crores.Budget 2019 relaxations for farmers
- There is a need of Rs 20 lakh crore for investment in the country every year.
- Several reforms have been proposed for the means of infrastructure financing.
- Notification has come from the RBI for the Credit Guarantee Enhancement Corporation, which will be established in 2019-20.
- FIIs and FI investments will be allowed to transfer domestic investors for a fixed period in the debt securities issued by Infrastructure Debt Funds and NBFCs.
- The Budget Speech was informed about the goal of strengthening roads, waterways and airways.
- The government wants to rivers for transportations of goods.
- Under the waterway development project, a multimodal terminal in Varanasi is functional from November and two other terminals are being constructed in Sahibganj and Haldia.
What we have for Tax Revenue Changes in Budget 2019?
- Direct Tax Revenue increases by 78%
- 6.38 lakh crore of the country’s financial year 2013-14 is growing at about 11.37 lakh crore 2018-19 every year at double speed.