The following are the proposed highlights of the Interim Budget announced by the Finance Minister, Mr. Piyush Goyal, on 1st February 2019.
Direct Tax
1. Individuals earning Annual Total Income up to Rs. 5 lakhs will be exempt from Income Tax.
2. Standard Deduction for Salaried Employees increased from Rs. 40,000 to Rs. 50,000
3. TDS on Rent threshold increased from the current annual rent of Rs. 1,80,000 to Rs. 2,40,000
4. Notional rent chargeable on more than one self-occupied house property is exempted for one more self-occupied house property i.e. 2 house properties can be self-occupied
5. Interest on savings account exempt under section 80TTA - exemption limit increased from Rs. 10,000 to Rs. 40,000
6. Benefits under Section 80IB has increased to one more year that is 2020.
7. Capital gains Exemptions under Section 54 to be available for two house properties.
8. Within two years, tax assessment to be done electronically.
Indirect Tax
9. Indian Customs to fully digitize Export Import transactions and leverage RFID for logistics.
10. Government has abolished duties on 36 capital goods.
11. Group of Ministers to suggest ways to reduce Goods and service Tax on home buyers. Immediate steps will be undertaken.
12. Assesses with less than Rs. 5 crore annual turnover will be allowed to file quarterly returns of GST.
Economy
13. The government has revised the fiscal deficit targets to 3.4 percent in FY 19.
14. Anti-black money measures have brought an undisclosed income amounting to Rs. 1.30 lakh crore, and 3.38 lakh shell companies were unregistered.
15. Divestment target of Rs. 80,000 crores.
16. Target for expenditure for Financial Year 2020 set at Rs. 27.84 lakh crore and capital expenditure set at Rs. 3.36 lakh crore.
17. Focus on debt consolidation along with fiscal consolidation.
Agriculture
18. Farmers occupying land less than two hectares to be offered Rs. 6,000 per year as direct transfer under Prime Minister Kisaan Samman Nidhi. The amount will be transferred directly into bank account of beneficiary farmers in three installments of Rs. 2000 each. Government has allocated Rs. 75,000 crores for this scheme.
19. Minimum Support Price (MSP) has been increased 1.5 times to fulfill the aim of doubling farm income. A fund of Rs. 60,000 crores has also been allocated to Mahatma Gandhi National Rural Employment Guarantee Act.
20. About two percent interest subsidy to be given to farmers involved in animal husbandry activities via Kisaan Credit Card Scheme.
21. All the farmers affected by natural calamities will continue to get two percent interest subsidy and an additional three percent subsidy will be paid on timely payment of loans.
22. Rashtriya Kamdhenu Aayog to be set up and separate department of fisheries created, two percent interest subsidy for those in fisheries.
Employees
23. Central Government has launched a pension scheme named Pradhan Mantri Shram Yogi Mandhan. Under this, workers in unorganized sector will get a monthly pension of Rs. 3000 per month after 60 years per month.
24. The gratuity limit has been increased from Rs. 10 lakhs to Rs. 30 lakhs.
25. The Employee Provident Fund limit has been increased from Rs. 2.5 lakhs to Rs. 6 lakhs, in case of demise of the employee.
Direct Tax
1. Individuals earning Annual Total Income up to Rs. 5 lakhs will be exempt from Income Tax.
2. Standard Deduction for Salaried Employees increased from Rs. 40,000 to Rs. 50,000
3. TDS on Rent threshold increased from the current annual rent of Rs. 1,80,000 to Rs. 2,40,000
4. Notional rent chargeable on more than one self-occupied house property is exempted for one more self-occupied house property i.e. 2 house properties can be self-occupied
5. Interest on savings account exempt under section 80TTA - exemption limit increased from Rs. 10,000 to Rs. 40,000
6. Benefits under Section 80IB has increased to one more year that is 2020.
7. Capital gains Exemptions under Section 54 to be available for two house properties.
8. Within two years, tax assessment to be done electronically.
Indirect Tax
9. Indian Customs to fully digitize Export Import transactions and leverage RFID for logistics.
10. Government has abolished duties on 36 capital goods.
11. Group of Ministers to suggest ways to reduce Goods and service Tax on home buyers. Immediate steps will be undertaken.
12. Assesses with less than Rs. 5 crore annual turnover will be allowed to file quarterly returns of GST.
Economy
13. The government has revised the fiscal deficit targets to 3.4 percent in FY 19.
14. Anti-black money measures have brought an undisclosed income amounting to Rs. 1.30 lakh crore, and 3.38 lakh shell companies were unregistered.
15. Divestment target of Rs. 80,000 crores.
16. Target for expenditure for Financial Year 2020 set at Rs. 27.84 lakh crore and capital expenditure set at Rs. 3.36 lakh crore.
17. Focus on debt consolidation along with fiscal consolidation.
Agriculture
18. Farmers occupying land less than two hectares to be offered Rs. 6,000 per year as direct transfer under Prime Minister Kisaan Samman Nidhi. The amount will be transferred directly into bank account of beneficiary farmers in three installments of Rs. 2000 each. Government has allocated Rs. 75,000 crores for this scheme.
19. Minimum Support Price (MSP) has been increased 1.5 times to fulfill the aim of doubling farm income. A fund of Rs. 60,000 crores has also been allocated to Mahatma Gandhi National Rural Employment Guarantee Act.
20. About two percent interest subsidy to be given to farmers involved in animal husbandry activities via Kisaan Credit Card Scheme.
21. All the farmers affected by natural calamities will continue to get two percent interest subsidy and an additional three percent subsidy will be paid on timely payment of loans.
22. Rashtriya Kamdhenu Aayog to be set up and separate department of fisheries created, two percent interest subsidy for those in fisheries.
Employees
23. Central Government has launched a pension scheme named Pradhan Mantri Shram Yogi Mandhan. Under this, workers in unorganized sector will get a monthly pension of Rs. 3000 per month after 60 years per month.
24. The gratuity limit has been increased from Rs. 10 lakhs to Rs. 30 lakhs.
25. The Employee Provident Fund limit has been increased from Rs. 2.5 lakhs to Rs. 6 lakhs, in case of demise of the employee.
