Finance Minister Piyush Goyal Friday proposed to increase tax deducted at source (TDS) on rent income to Rs 2.4 lakh from the current Rs 1.80 lakh.
Presenting the Budget for 2019-20 in the Lok Sabha, Goyal also announced that the TDS threshold on interest from bank and post office deposits will be raised from Rs 10,000 to Rs 40,000.
The government also proposes to exempt tax on notional rent for unsold units for two years, he added.
Among other measures, he said benefits under Section 80(i)BA were being extended for one more year for all housing projects approved till the end of 2019-2020.
Goyal also expressed confidence over crossing Rs 80,000 crore disinvestment target this year.
The Finance Minister also added that expenditure will rise by 13 per cent from revised estimate 2018-19 to Budget estimate 2019-20.
Along with completion of fiscal deficit consolidation programme, government will now focus on debt-to-GDP ratio consolidation, he added.
Stating that the NDA government has laid the foundation for India's growth and development for times to come, he said that its Vision 2030 would entail expanding rural industrialisation, using modern industrial technologies and Make In India approach.
Goyal said India was on the way to becoming global manufacturing hub including automobiles, electronics and defence.
Impactful steps have been taken to reduce tax, bring benefits for middle class citizens, he said, adding as many as as 34 crore Jan Dhan accounts opened in five years and that Aadhaar had ensured benefits reached the poor.
Also, he said Rs 76,800 crore have been allocated for welfare of SCs/STs for 2019-20, up from Rs 62,474 crore in 2018-19.
Budget allocation to north east region is proposed to be increased by 21 per cent to Rs 58,166 crore for 2019-20, the finance minister added.
Announcing other measures, he said the government has proposed amendments to ensure streamlined system for levy of stamp duties to be imposed and collected at one place.
Stamp duty will be collected by stock exchanges on basis of domicile of client, he added.
Urgent steps were needed to boost domestic oil and gas production to cut imports, he said.
Amid criticism from the opposition, Goyal asserted, "This is not just an Interim Budget, this is a vehicle for developmental transformation of the nation.
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.