1. Within 2 years, Tax assessment will be done electronically - The government announced that within the next 2 years, they do all the verifications and assessments of returns electronically. They will use anonymised back offices which will be manned by tax experts and officials without any personal interface between taxpayers and officers.
2. IT returns processing in just 24 hours - With the advancement in the technology, Government promises to process all the returns in twenty-four hours and refunds issued simultaneously.
3. Minimum 14% revenue of GST to states by Central Government - After submission of the 7th Central Pay Commission Report, the recommendations implemented immediately. The New Pension Scheme (NPS) has been liberalized. The contribution of the employee is 10% and the Government’s contribution will be 4% making it 14%. Maximum ceiling of the bonus given to the labourers has been increased from Rs. 3,500/month to Rs. 7,000/month and the maximum ceiling of the pay have been increased from Rs. 10,000/month to Rs. 21,000/month.
4. Custom duty has abolished from 36 Capital Goods - Government abolished duties on 36 capital goods. A revised system of importing duty-free capital goods and inputs for manufacture and export has been introduced. Along with that, they also introduced a single point of approval under section 65 of the Customs Act. Indian Customs is introducing full and comprehensive digitalization of export/import transactions and leveraging RFID technology to improve export logistics.
5. Recommendations to GST council for reducing GST rates for home buyers - To reduce the GST burden on home buyers, Government moved the GST council to appoint a Group of Ministers to examine and make recommendations in this regard ASAP.
6. Full Tax rebate up to 5 lacs annual income after all deductions - Anyone who have an annual income of Rs. 5 Lacs will get a full tax rebate. In other words, they will not have to pay any income tax. Even persons having gross income up to Rs. 6.50 lacs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc.
7. Standard deduction has increased from 40000 to 50000 - Raising Standard Deduction from Rs. 40,000 to Rs. 50,000 will provide additional tax benefits of Rs. 4,700 Crores to more than 3 Crore Salary earners and Pensioners.
8. Exempt on tax on the second self-occupied house - Considering the difficulty of the middle class having to maintain families at two locations on account of their job, children’s education, care of parents etc. The government proposed to exempt levy of income tax on notional rent on a second self-occupied house.
9. Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000 - TDS threshold on interest earned on bank/post office deposits is being raised from Rs. 10,000 to Rs. 40,000. This will benefit small depositors and non-working spouses.
10. Ceiling Limit of TDS u/s 194I has increased from 180000 to 240000- The TDS threshold for deduction of tax on rent is proposed to be increased from Rs. 1,80,000 to Rs. 2,40,000 for providing relief to small taxpayers.
11. Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses.
12. Benefit u/s 80-IBA has increased to one more year i.e. 2020 - For making more homes available under affordable housing, the benefits under Section 80-IBA of the Income Tax Act is being extended for one more year, i.e. to the housing projects approved till 31st March 2020.
13. Benefit has given to unsold inventory as the period of exemption has increased to one year to two years.
1. State share has increased to 42% - Government contained the fiscal deficit notwithstanding the Finance Commission’s recommendations increasing the share of the States from 32% to 42% in central taxes.
2. PCA restriction has abolished from 3 major banks - Bank of India, Bank of Maharashtra and Oriental Bank of Commerce have been allowed to exit RBI’s prompt corrective action (PCA) framework.
3. 2 lac seats will increase for the reservation of 10% - The Government while maintaining the existing reservation for SC/ST/Other Backward Classes, have now ensured 10% reservation in educational institutions and Government services for poor people. In these institutions, around 2 lac (25%) extra seats will be provided so that, there is no shortfall of presently available/reserved seats for any class.
4. 60,000 crores for MGNREGA - Rs. 60,000 crores are being allocated for MGNREGA in 2019-20. Additional amount would be provided if required.
5. 1.7 Lac crore to ensure food for all - To provide foodgrains at affordable prices to the poor and middle classes, about Rs. 1,70,000 crores were spent in the year 2018-19 which is almost double the amount of Rs. 92,000 crores spent in the year 2013-14.
6. 22nd AIIMS has to be opened in Haryana
7. Approval has to be given to PM Kisan Yojana - Government launched a new historic programme called Pradhan Mantri KIsan SAmman Nidhi or simply, PM-KISAN. Under this programme, vulnerable landholding farmer families, having cultivable land up to 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal installments of Rs. 2,000 each. This programme will entail an annual expenditure of Rs. 75,000 crore.
8. Announcement of setting up National Kamdhenu Ayog for cows.
9. Increased allocation for National Gokul Mission to Rs. 750 crores.
10. 2% interest subvention for farmers pursuing animal husbandry and also create a separate department for fisheries.
11. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
12. Tax-free Gratuity limit increase to 20 Lac from 10 Lac
13. Bonus will be applicable for workers earning 21000 monthly
14. The scheme, called Pradhan Mantri Shram Yogi Mandhan, will provide assured monthly pension of Rs. 3,000 with the contribution of Rs. 100 per month for workers in the unorganized sector after 60 years of age.
15. Our government delivered 6 crores free LPG connections under Ujjwala scheme
16. 2% interest relief for MSME GST registered person
17. 26 weeks of Maternity Leaves to empower the women
18. More than 3 Lac crores for defence - Our Defence Budget will be crossing Rs. 3,00,000 crore for the first time in 2019-20. It is a great move for securing our borders and to maintain preparedness of the highest order. If necessary, the Government will provide additional funds.
19. One lac digital villages will be made in the next 5 years
20. Single window for approval of Indian filmmakers- To promote entertainment industry – Single window clearance for ease of shooting films, available only to foreigners, is now going to be made available to Indian filmmakers as well. The reason behind this step is that the Entertainment industry is a major employment generator for our country.
As the technology is becoming more advanced, people are becoming smarter. And with that, Government is thinking more about people. There are many improvements announced in the Interim Budget 2019 which will help not only Entrepreneurs but their employees also. We don't think anybody out there have any kind of problem with this budget. We hope you like this post. Congratulations to you and your family as we all the one responsible for the development of our country.
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