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Highlights of Union Budget 2019-20

Tags: crore lakh budget

The Budget for 2019-20 was announced on 1 February 2019 by the acting Finance Minister Piyush Goyal. This budget got a huge populist push which is aimed at benefitting the middle class, farmers, workers of the Unorganised sector, and so on. This is the final budget of the Central Government led by Prime Minister Narendra Modi before the Lok Sabha elections which are scheduled for 2019. For more details about union budget click here.

Highlights of Union Budget 2019-20
Highlights of Union Budget 2019-20

The highlights of the 2019 Budget can be summed up as follows:

  • The individuals who draw an annual income of up to Rs.5 lakh will be eligible for full tax rebate.
  • The tax slabs for the individuals whose annual income is more than Rs.5 lakh remain unaltered.
  • The individuals who draw a gross annual income of Rs.6.5 lakh will be eligible for full tax exemption, provided they make investments in insurance, provident funds, and/or other specified savings schemes.
  • For salaried individuals, the standard deduction has been increased to Rs.50,000 from Rs.40,000.
  • 23,000 crore to be allocated by direct tax proposals for the relief of 3 crore taxpayers.
  • The threshold for TDS pertaining to rental income has been increased to Rs.2.4 lakh from Rs.1.8 lakh.
  • The upper cap for gratuity has been increased to Rs.30 lakh from Rs.10 lakh.
  • The threshold for TDS pertaining to the interest earned from deposits in post offices and banks has been increased from Rs.10,000 to Rs.40,000.
  • The taxpayers who have capital gains of up to Rs.2 crore will be able to avail the benefit of rolling over the capital tax gains for investment in two residential houses as opposed to the investment in one residential house. This benefit can be availed by these taxpayers once in a lifetime.
  • The tax to be exempted on the notional rent on a second house which is self-occupied.
  • For all the housing projects which have been approved till the end of 2019-20, the benefits under Section 80(i)BA will be extended for another year.
  • Ambition to make India an economy worth $5 trillion in the next 5 years and a $10 trillion economy in the upcoming 8 years.
  • The businesses which have an annual turnover of less than Rs.5 crore will be eligible to file their returns on a quarterly basis.
  • The GST collections for the month of January 2019 have crossed the mark of Rs.1 lakh crore.
  • The tax base has been raised to Rs.6.85 crore from Rs.3.79 crore.
  • The direct tax collection has witnessed growth from Rs.6.38 lakh crore in 2013-14 to Rs.12 lakh crore.
  • Due to the continuous reduction of the Goods and Services Tax (GST), a relief of Rs.80,000 crore has been provided to the final consumers.
  • For MSME units which are registered under the Goods and Services Tax (GST), 2% interest subvention will be offered on loans of Rs.1 crore.
  • The Group of Ministers of the GST Council are looking for ways to offer benefits to the potential buyers of houses under GST.
  • The proposed budget allocation for the North East region has been increased by more than 21% to Rs.58,166 crore.
  • The allocation for the Rashtriya Gokul Mission has been increased to Rs.750 crore in this year.
  • The farmers who are pursuing fishery and animal husbandry will be getting a subvention of 2%.
  • Against a contribution of Rs.100, more than 10 crore workers belonging to the unorganised sector will be eligible for a monthly pension of Rs.3,000 after the age of 60 years under the Pradhan Mantri Shram Yogi Mandhan scheme.
  • Farmers who have a land holding of less than 2 hectares will be eligible to receive Rs.6,000 every year under the Pradhan Mantri Kisan Samman Nidhi. The entire amount will be sent to the bank account of the farmers directly, in 3 instalments. The estimated allocation for this purpose is pegged at Rs.75,000 crore.
  • The fiscal deficit has been reduced to 3.4%. The current account deficit or CAD is expected to be 2.5% of GDP for the financial year 2020.
  • The tax exemption period has been pushed to 2 years from 1 year on the notional rent on inventories which are unsold.
  • The total expenditure is set to rise by 13% in the financial year 2020 to Rs.27.84 lakh.
  • The allocation towards the National Education Mission set to be Rs. 38,572 crore (increased by around 20%).
  • The allocation towards the Integrated Child Development Scheme set to be Rs.27,584 crore (increased by more than 18%).
  • Addition of 25% seats in the educational institutions in order to meet the requirement of 10% reservation which is offered for the poor.
  • Target for disinvestment for the financial year 2020 set at Rs.90,000 crore. The target for financial year 2018-19 is likely to be met.
  • An all-time high defence budget of Rs.3 lakh crore.
  • 22nd AIIMs to be set up in Haryana.
  • The filmmakers in India to get a single window clearance access for the purpose of easy shooting of films.
  • 1 lakh villages to be digitalised in the next 5 years.
  • For the betterment of 1.5 crore fishermen, a Department of Fisheries is to be created separately.
  • At least 3% of the total of 25% of the sourcing for the undertakings of the government is set to come from SMEs owned by women.
  • For the financial year 2019-20, Rs.60,000 crore is set to be allocated for MGNREGA.
  • In order to support the national programme on Artificial Intelligence (AI), a new portal will be created.
  • Working women will now be entitled to a maternity leave of 26 weeks.
  • Under the ‘One Rank One Pension’ scheme, an allocation of Rs.35,000 crore has been made for soldiers.

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Highlights of Union Budget 2019-20


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