Highlights of previous Financial Year:

  • 100% exemption benefit of Co-operative societies was extended to Agriculture Producer Company having turnover up to 100 Crore for a period of 5 years starting from F.Y. 2018-19.
  • Government forego revenue of Rs 7,000 Crore by reduction of Corporate Tax to 25% to companies that reported turnover up to 250 Crore in Financial Year 2016-17.
  • Real Estate Transactions: prohibition on making any additions on transactions within 5% -/+ range from Circle rate for Real Estate Transactions
  • No change in Income Tax Rate or Basic Exemption Limit for individual taxpayers or salaried persons.

2019, Budget is primarily focused on:

  • Agriculture,
  • Small and Medium industries and,
  • Health sectors
  • Salaried individuals, including increase in standard deduction.
  • TDS on rent, fixed deposits, etc.
  • Promoting more people to file their income tax.
  • Employment generation
  • GST regime
  • Tax gift for middle class
  • Rebate in paying income tax to small tax players.
  • Defence budget.
  • Reduction in cost of voice calls and data, in the telecom sector.

2019, Budget pitfalls:

The budget lacks in certain areas like:

  • No changes in the slab rate for income tax
  • No reduction in corporate tax

A brief run through of the 2019 budget.

INCOME TAX

  • Full tax rebate to Individuals having income up to Rs. 5 Lakh.
  • For Salaried person the Standard Tax Deduction increased to Rs. 50,000 from Rs. 40,000
  • No need to pay tax- For individuals with gross income up to Rs. 6.5 Lakh, if makes investment in provident funds and prescribed equities.
  •  TDS Limit for rental income increased to Rs. 2.4 Lakh from Rs. 1.8 Lakh
  • Limit for Gratuity increased to Rs. 30 Lakh from 20 Lakh
  • No tax for income from Interest up to Rs 40,000 in post offices and banks
  • Tax assessment will be done electronically within 2 years
  • IT returns processing would be done in just 24 hours
  • Exempt on tax on second self-occupied house
  • Ceiling Limit of TDS u/s 194A has increased from 10000 to 40000
  • Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses.
  • Benefit u/s 80IB has increased to one more year i.e. 2020
  • Benefit has given to unsold inventory has increased to one year to two years.
  • Tax free Gratuity limit increase to 20 Lakhs from 10 Lakhs

AGRICULTURE SECTOR

  • 1.7 Lakh crore to ensure food for all
  • 22nd AIIMS has to be opened in Haryana
  • Approval has to be given to PM Kisan Yojana
  • 60000 crores for Manrega
  • Rs. 6000 per annum has to be given to every farmer having upto 2 hectare land.Applicable from Sept 2018. Amount will be transferred in 3 installments
  • National kamdhenu ayog for cows. Rs. 750 crores for National Gokul Mission
  • 2% interest subvention for farmers pursuing animal husbandry and also create separate department for fisheries.
  • 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
  • Rs 20,000 crore to be spent on PM Kisan Scheme in FY19
  • In place of rescheduling of crop loans, all farmers severely affected by severe natural calamities will get 2% interest subvention and additional 3% interest subvention upon timely repayment

GST & INDIRECT TAX

  • Businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns
  • Minimum 14% revenue of GST to states by Central Govt.
  • Custom duty has abolished from 36 Capital Goods
  • Recommendations to GST council for reducing GST rates for home buyers
  • 2% interest relief for MSME GST registered person

MSME SECTOR

  • A two percent interest subsidy on loans upto Rs 1 crore for MSME registrants.
  • 25 percent of government projects to be handled by MSME sector, of which 3% will be given to women entrepreneurs.
  • MSMEs registrants given a new platform, eMarketplace (GeM), to sell and market their products and services.

OTHER AREAS

  • State share has increased to 42%
  • PCA restriction has abolished from 3 major banks
  • 2 lakhs seats will increase for the reservation of 10%
  • Bonus will be applicable for workers earning 21000 monthly
  • The scheme, called Pradhan Mantri Shram Yogi Mandhan, will provide assured monthly pension of Rs. 3,000 with contribution of Rs. 100 per month for workers in unorganized sector after 60 years of age.
  • Our government delivered 6 crores free LPG connections under Ujjawala scheme
  • 26 weeks of Maternity Leaves to empower the women
  • More than 3 Lakhs crores for defence
  • One lakh digital villages in next 5 years
  • Single window for approval of India film makers
  • Implementation of OROP(one rank , one pension.)
  • Reduced dependence in oil Imports due to Ev’s that will provide energy security.