Major Highlights on Interim Budget (2019-20) By CS Hemant Gupta


Presented in Parliament on 01.02.2019 by Shri Piyush Goyal, the Union Minister for Finance, Corporate Affairs, Railways & Coal.

Major Schemes

  1. Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN) to extend direct income support at the rate of Rs. 6,000 per year to farmer families, having cultivable land upto 2 hectares is announced. (Rs. 2000 each will be transferred to the bank accounts of around 12 Cr. Small and Marginal Farmer families in 3 equal installments, the first installment for the period upto 31.03.2019 would be paid during this year itself)
  1. A separate Department of Fisheries & 2% interest subvention to the farmers pursuing the activities of animal husbandry and fisheries, who avail loan through Kisan Credit Card. Further, in case of timely repayment of the loan, they will also get an additional 3% interest subvention.
  1. Setting up of Rashtriya Kamdhenu Aayog to upscale sustainable genetic upgradation of cow resources and to enhance production and productivity of cows has also been announced.
  1. Allocation of Rs.750 crore for Rashtriya Gokul Mission has been announced for the current year itself.
  1. Pensionary benefits to at least 10 Crore laborers and workers in the unorganized sector a new Scheme called 'Pradhan Mantri Shram-Yogi Maandhan' is announced. A sum of Rs.500 Crore has been allocated for the Scheme
Tax Benefits

  1. No Income Tax for Individual taxpayers having taxable annual income up to Rs.5 lakhs (provided in the form of rebate under section 87A i.e. it will be applicable to only such individuals who are having taxable income <= 5 Lakh).
  1. Persons having gross income up to Rs. 6.50 lakhs are not required to pay any income tax if they make investments in provident funds, specified savings and insurance etc. u/s 80C.
  1. Additional deductions such as interest on a home loan up to Rs. 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance and medical expenditure on senior citizens etc.
  1. For salaried persons, Standard Deduction is being raised from the current Rs.40,000 to Rs.50,000.
  2. Exemption on levy of income tax on notional rent on a second self-occupied house is also now proposed.
  1. TDS threshold on interest earned on bank/post office deposits is being raised from Rs. 10,000 to Rs.40,000
  1. TDS threshold deduction of tax on rent is proposed to be increased from Rs. 1,80,000 to Rs.2,40,000 for providing relief to small taxpayers.
Enhanced allocations for major Schemes

  1. Allocation of Rs.60,000 crores for MGNREGA for Budget Estimates 2019-20.
  1. Pradhan Mantri Gram Sadak Yojana (PMGSY) is being allocated Rs.19,000 crore in BE 2019-20
  1. setting up of a new – the 22nd AIIMS in Haryana
  1. Allocation for Integrated Child Development Scheme (ICDS) is being increased from Rs.23,357 crore in RE 2018-19 to Rs.27,584 Cr.
  1. A substantial increase in the allocation for welfare of the Scheduled Castes and Scheduled Tribes-proposed to be enhanced to Rs.76,801 crore from Rs.62,474 crore.
  1. For the Scheduled Tribes also, proposed allocation in 2019-20 BE is Rs.50,086 crore as against Rs.39,135 Cr.
  1. a Welfare Development Board to frame special strategies for the benefit of the hard-to-reach De-notified, Nomadic and Semi-Nomadic communities will be set up under the Ministry of Social Justice and Empowerment
  1. a National Artificial Intelligence Portal will also be developed soon as a part of the National Programme on 'Artificial Intelligence’
  1. DIPP will now be renamed as the Department for Promotion of Industries and Internal Trade
  1. Defence Budget will be of over Rs.3 lakh crore
  1. Capital support from the budget for Indian Railways is proposed at Rs.64,587 crore in 2019-20

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