New Delhi: Finance Minister Piyush Goyal on Friday doled out sops across various categories –Farmers, middle class, salaried individuals, unorganised sector and small tax payers while presenting Interim Budget for 2019-20 in Lok Sabha.
The final Budget for the fiscal year ending in March 2020 (FY20) will be presented soon after the next government takes office following general elections, which are due by May 2019.
FM Goyal proposed to double the tax exemption limit for salaried class from existing Rs 2.5 lakh to Rs 5 lakh and also increased the standard deduction to Rs 50,000 from Rs 40,000.
Goyal further explained that if an individual invests in the specified tax saving schemes of the government, the effective tax-free income limit will be Rs 6.5 lakh a year, while it may go further up with additional avenues like NPS, medical insurance and home loan interest payment.
The Finance Minister also announced increase of gratuity limit from Rs 10 lakh to Rs 20 lakh from the next fiscal.
For middle class, small depositors and Senior Citizens
Goyal announced that TDS threshold on interest from bank, post office deposits will be raised from Rs 10,000 to Rs 40,000.
The proposal will benefit senior citizens and small depositors who depend upon income from interest on deposits in banks and post offices, the FM said.
The Budget also proposed to exempt tax on notional rent for unsold housing units for two years. Goyal also proposed that benefit of rollover of capital tax gains be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains of up to Rs 2 crore. However, it can be exercised once in a lifetime.
Further, the TDS threshold for 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.
Bonanza for Farmers
Goyal announced major sops to provide relief to distressed farm sector. Under the scheme called 'Pradhan Mantri Kisan Samman Nidhi', FM announced that farmers holding up to 2 hectares of land will get Rs 6,000 per year cash support. This will cost the exchequer Rs 75,000 crore annually,
The Rs 6,000 will be transferred into bank accounts of each farmers in three equal instalments. Goyal said it will benefit 12 crore farmers and will be implemented from this fiscal itself.
Rs 20,000 crore have been provided for current fiscal and allocation of Rs 75,000 crore has been announced for the next fiscal.
FM unveiled a mega pension yojna for the unorganised sector workers that will benefit 10 crore people. Workers of the unorganised sector will get assured monthly pension of Rs 3,000 after reaching the age of 60 years under Pradhan Mantri Shram Yogi Mandhan scheme. The scheme will provide assured monthly pension of Rs 3,000, with contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age," Goyal said.
Goyal announced an increase in defence budget to over Rs 3 lakh crore in 2019-20, adding that additional funds will also be provided if necessary. Rs 3,05,296 crore have been provided in the Budget Estimates for 2019-20, compared to Rs 2,82,733 crore provided in 2018-19 Budget Estimates.
He also said Rs 35,000 crore has been given under OROP in the last three years. Announcing substantial hike in military service pay, the finance minister said defence budget has been increased to over Rs 3 lakh crore in 2019-20.