On the 1st of February, we saw the dawn of a new era when the Budget for 2019 surprised everyone with some amazing and revolutionary changes. One of the most highlighted and immediately important change, that a lot of you might already have heard from others or on the news is :
“Full tax rebate upto 5 lakh annual income after all deductions”
Amazing as it is, this is not the only highlight of the budget, and it also needs some in-depth explanation. Follow through this article to know more about this budget, its clauses and its important parts other than taxes.
But let us start with the taxes, of course, *wink*
Within 2 years, the Tax assessment is expected to be done electronically.
IT returns processing is to be now done in just 24 hours.
Central Government’s GST revenue’s minimum 14% share shall go to the state government.
Recommendations have been made to the GST council to reduce GST rates for home buyers.
Tax Exemptions on the second ‘Self occupied’ House.
36 capital goods are now custom duty free.
Standard deductions have increased from 40,000 to 50,000.
Cash transfer of rs. 6000 per year to farmers owning less than 2 hectors of land
Besides this, certain Ceiling Limits and Capital Tax Benefits have also increased.
OTHER AREAS –
State shares have increased to 42%
PCA restrictions abolished from 3 major banks
1.7 lakh crore dedicated to ensuring food for ALL
Rs. 750 crores dedicated to National Gokul Mission
Maternity leaves upto 26 weeks in favor of women empowerment
Over 3 lakh crores dedicated to defense
One Lakh digital villages in 5 years
Besides these, there are a lot of other clauses, which all aim to the benefit of all sectors of society.
However, there is NO CHANGE IN SLABS, which means that after 5 lakhs. The tax payable for those who earn above 5 lakh remains the same and they do not benefit in any way, which, is an important catch. So the tax as to be paid as per the 2.5 lakh slab with tax rate 5/20/30% as is applicable. But how this new clause is a curse or a boon is yet to be seen.
This budget comes only 30 days before the Lok Sabha polls. We already know the Modi Government knows its way around, impressing everyone – urban and rural, middle class and poor, millennials and their previous generation equally. This budget is nothing like ‘Interim’ and only brings hopes for an even better future, as Modi says that this is just the beginning. And honestly, it has left no room for complaining.