The 2019 - 20 budget is an interim budget, since it is the last budget to be held later this year before the general election. In the interim budget, of course, many populist schemes were expected to be announced. So let's find out what the 2019 - 20 budget's highlights are.
Tax rates on personal income remained unchanged:
NIL tax on income upto Rs 2.5 lacs
5% tax on income above Rs 2.5 lacs upto Rs 5 lacs
20% tax on income above Rs 5 lacs upto Rs 10 lacs
30% tax on income above Rs 10 lacs
However, the full tax rebate provided for individuals earning income up to Rs 5 lakes in accordance with Section 87A. The tax discount limit has been raised from Rs 2,500 to Rs 12,500. This means that people who earn income up to Rs 5 lakes do not have to pay any tax. This move will benefit an estimated 3 crore middle class tax payers and lead to a loss of revenue for the government of Rs 18,500 crores.
Taxable income above Rs 50 lacs: Surcharge of 10%
Taxable income above Rs 1 crore: Surcharge of 15%
Health and Education cess on Income Tax: 4%
Standard tax deduction for salaried persons raised from Rs 40,000 to Rs 50,000
Income Support to Farmers
In the interim budget for 2019 - 20, Pradhan Mantri - Kisan Samman Nidhi (PM - KISAN), an income support scheme for marginal farmers was announced.
Under this scheme, farmers holding up to 2 hectares of agricultural land will receive Rs 6,000 each year as guaranteed income support.
This increases income support for marginal farmers by up to Rs 16.40 per day. Of the country's 14.57 crore agricultural holdings, approximately 12.56 crores are less than 2 hectares intended to benefit from this scheme.
However, the amount of Rs 6,000 will not be transferred in one way to the beneficiary account, but will be paid in three installments of Rs 2,000 each.
Social Security for Unorganised Sector
The Pradhan Mantri Shram Yogi Mandhan has announced a social security pension scheme for workers in the unorganized sector.
Under the scheme, workers in the unorganized sector will receive an insured monthly pension of Rs 3,000 per month after 60 years of age. However, employees will have to contribute Rs 100 months to benefit from the scheme.
In the interim budget for the financial year 2019 - 20, only Rs 500 crores were allocated for this scheme.
Other Highlights of Budget 2019-2020
The upper ceiling was increased from Rs 20 lakes to Rs 30 lakes
TDS on deposits from the bank / post office increased from Rs 10,000 to Rs 40,000
Threshold TDS for rental income from Rs 1.8 lakes to Rs 2.4 lakes
In 2018 - 19, the fiscal deficit was 3.4 percent of GDP, which was marginally higher than the 3.3 percent target. For the financial year 2019 - 2020, a fiscal deficit target of 3.4 percent has been set
A target for the 2019 - 2020 disinvestment of Rs 90,000 crores from PSUs has been set
For the financial year 2018 - 19, direct tax collections are expected to exceed the target of Rs 12 crores by Rs 50,000 crores
GST collections fell short of Rs 1 lac crore's budget target for 2018 - 19