Interim Budget 2019 – Key Highlights By CS Kajal Gupta


Interim Finance Minister Piyush Goyal has presented the much awaited Interim Budget also known as a Vote on account Budget. The Major highlights of the Interim Budget are as follows:
 
CHANGES IN TAX RATES

  • Individual taxpayers with annual income up to 5 lakh to get a full tax rebate.
  • The standard deduction of 40,000 has been raised to Rs. 50,000.
  • No tax on notional rent on second self-occupied.
  • No TDS on house rent upto 2.4 Lakhs.
  • TDS limit hiked from Rs 10,000 to Rs 40,000 on post-office.
  • Capital Gains exemption under Section 54 to be available on two houses.
  • Group of Ministers looking at ways to ease GST burden on.
  • All interest income above 40,000 from Bank deposits will now get taxed and not Rs. 10,000.
ECONOMY & ALLOCATIONS

  • FY20 fiscal deficit target set at 4 percent.
  • Expenditure target for FY20 set at Rs 84 lakh crore.
  • Capital expenditure for FY20 set at Rs 36 lakh crore.
  • FY19 fiscal deficit pegged at 3.4 percent of GDP; current account deficit at 2.5 percent of
  • Divestment target of Rs. 80,000.
  • Focus on debt consolidation along with Fiscal.
  • Allocation for North Eastern Region proposed to be increased to 58,166 crores in this year, a 21% rise over the previous year.
  • Railway Capex increased from 53,060 crores in FY 19 to Rs. 64,586 Crores in FY 20.
  • Defense Budget increased to 3 Lakh Crore.
  • Indian Railway Budget outlay 1,48,658 Crores.
  • Will set up “Rashtriya Kamdhenu Aayog” to look after the welfare of cows, including genetic improvements and sustainable development.
  • 9 priority areas have been identified; the National Artificial Intelligence portal to be developed.
  • Mahatma Gandhi National Rural Employment Guarantee Program’s allocation increased to Rs. 60,000.
VISION 2030

  • Placing an Indian astronaut in Space by.
  • Aspire to become $ 10 Trillion economies in next 8.
FARMERS
 
  • Farmers with less than two hectares of land to be offered Rs 6,000 per year as a direct transfer under PM Kisaan Samman Nidhi. The benefit will be transferred directly into the bank account of beneficiary farmers in three installments of Rs 2,000 Around 12 crore farmers to benefit from the scheme. This scheme will cost the government around Rs 75,000 crore.
  • 2% interest subvention (subsidy) to be given to farmers involved in animal husbandry activities via kisaan credit card
  • All farmers affected by severe natural disasters to will continue to get 2% interest subvention (subsidy) and an additional three percent subsidy will be paid on timely payment of
  • Separate Department of Fisheries created, two percent interest subvention for those in
  • To provide Rs 750 crore in FY19 to support animal husbandry and
WORKERS
 
  • Monthly pension of Rs 3,000 for workers in the unorganised sector to be paid out after retirement. Pension scheme to benefit 10 crore workers in the unorganised sector. Those who join at 18 years of age will have to contribute a mere Rs 55 per month. The government will contribute equal matching share in the pension account.
  • Employees' State Insurance eligibility cover limit has been raised to Rs 21,000 per month from Rs 15,000 per month.
  • Gratuity limit increased from Rs 10 lakh to Rs 30.
  • Workers who suffer grievous injuries will now receive Rs 6 lakh from Rs 2.5 lakh through the Employee Provident Fund Organisation (EPFO).
  • New Pension Scheme – Employees Contribution is 10%, the government’s contribution increased from 10% to 14%.
HEALTH

  • 22nd AIIMS hospital is going to be set up in.
FILM INDUSTRY

  • Single window clearance for film making to be made available to Indian Filmmakers.
  • Anti – camcording provisions to be introduced to Cinematography Act to combat film.

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