Budget 2019 | 'Election' Budget: Silent On Jobs?

Budget 2019 | 'Election' Budget: Silent On Jobs?

Budget 2019 | 'Election' Budget: Silent On Jobs?

Union Finance Minister Piyush Goyal, in his Budget 2019 speech on Friday announced several tax benefits for the salaried and middle class.

"As a result, even persons having gross income up to Rs 6.5 lakh may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc". Section 80C of the Income Tax act provides tax exemptions up to Rs 1.5 lakh. Although the Centre's share of goods and services tax (GST) receipts is expected to be about Rs 1 trillion below the Budget Estimates in 2018-19, this share is projected to grow at over 20 per cent in 2019-20. So, he will not pay taxes for first 2.5 lakh, then 5% tax will be levied on Rs 2.5 lakh to Rs 5 lakh which will be Rs 12,500. The limit for tax deduction at source on rental income under section 194-I of the Income-tax Act, 1961 (the Act) is also marginally increased from Rs 15,000 per month to Rs 20,000 per month.

Mr Goyal also announced the government's proposal to lift the standard deduction limit - wherein employees and pensioners are given a flat relief from taxable income - from Rs 40,000 in a year to Rs 50,000.

"Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate, finance minister Piyush Goyal announed during budget 2019", Piyush Goyal said in a major announcement as people in Parliament cheered. The move will benefit senior citizens and small depositors who depend on interest income from deposits in banks and post offices, the minister said. The government's total expenditure is estimated to increase 13.3% in 2019-20 from the revised estimates for the current year.

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'Tax Rebate on the other hand, is a relief provided to taxpayers in the form of a refund on taxes already paid to the government. The government has raised about Rs 35,500 from asset sales so far this fiscal year.

In its interim budget, the government has proposed a number of tax sops that may tempt people to buy a second house. As per the government, construction of rural roads tripled in five years, thus increasing connectivity.

Despite high oil prices in 2018-19, petroleum subsidy has actually been reduced by ₹100 crore, tacitly signalling a large amount of the subsidy shifting to the next fiscal year. Troubled real estate companies were handed lifelines, in particular on unsold inventory - no tax on notional rent for two years after completion - and they were given a year's extension if they wished to access benefits associated with starting a new low-priced housing project. Those with second homes received two tax incentives - notional rent on the second house was no longer taxable, and a second home could be purchased while saving on capital gains tax.

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