Detailed Analysis of Interim Budget 2019

It is the time of the year when the budget gets passed. Although it is not 1^st of March so we don’t have the union budget whereas this is the interim budget. Now what the best part of this budget is that it is going to help the middle class family a lot. They are giving a lot of advantage to them in all the aspects. The interim budget is although not the final one because this is the budget that is passed by the government before the actual budget passes. In one or the other way we can say that it is a glimpse of what is coming towards us.

Now let us see a few highlights of the budget 2019. And also know for sure that how is it going to affect the common man, today and in future as well.

When it comes to paying TAX that common man is always sweating because they have to give a lot of that. Now lets us see what all changes does the government makes in the TAX arena. In this regards the budget 2019 has been way better than the expected.

Income Tax sector and other Tax benefits

• The budget says that within next 2 years all the tax assessments will be turned from manual to electronic. The assessment will be done online.
• It also says that the processing of the Income Tax returns will be completed in just 24 hours.
• The Central government is going to give a minimum of 14% revenue to the states.
• If we were to believe the budget news then the government has abolished the custom duty from 36 Capital goods
• For those who are buying homes; the central government has recommended the GST council to reduce the rates of GST for them. Goods and services tax can be applied in simple and easy steps if you have all the document with you.
• The state share has now been increased to 42% of what it previously was.
• After all the deductions that are done if your annual income is 5 lakhs or less then you will not have to pay the TAX. The government gives a full tax rebate to them.
• Whereas the standard deduction of the TAX has increases by 10,000 INR. Previously it was 40,000 INR and now it is 50,000 INR.
• If you are living on a second self- occupied house then also you are free from paying TAX.
• The ceiling limit of the TDS u/s 194A has now increased to 40,000 INR from 10,000 INR.
• Then the ceiling limit of TDS u/s 1941 has now increased to 240,000 INR from 180,000 INR.
• The PCA restrictions have been abolished from all the major banks functioning in India.

Housing Benefits

• Now the government has also given a capital TAX benefit to the people of India as under section 54 the benefits has increased from 1 residential house to 2 residential houses.
• Now the benefits that people were getting under section 80IB has now increased to one more year which is till 2020.
• The benefits given to the unsold inventory has now increased from 1 year to 2 years.

Now these were some of the benefits that people are going to get from the interim budget in regards of the TAX. But this is not it. If you think that government has just taken these few things under consideration then you are wrong. Now apart from all the taxes and housing benefits there are a few more things that the budget highlights has touched. Let us have a quick look on that.

Agriculture Sector

• It is implemented that every farmer who has a land up to 2 hectares will be given 6000 INR every year. This has been made applicable from September 2018 and the money will be given in 3 installments.
• The government has also aimed to make 1 Lakh digital villages in next 5 years.
• Farmers having an animal husbandry will be given 2% interest on farmer’s subvention.
• Those farmers who are hit with natural calamities will be given a 2% compensation and to this they are also given a 3% interest subvention for the timely payment.

Seat Reservations and Rural Development sector

• The reservation of 10% given to people will now increase by 2 lakh seats in all the areas.
• For the investment done by the government in the National Rural Employment Guarantee Act of the year 2005, is now going to be 60,000 Crores.
• The government is now also ensuring that every citizen gets food to eat; at least 3 times a day and for this they are going to invest a huge amount which is 1.7 lakh Crore.

Health Sector

• The government has also sanctioned to open 22^nd AIIMS in Haryana
• The budget has also given the approval to the budget kisan yojana.
• The government is going to invest an amount of 750 Crore under the National Kamdhenu ayog for cows in the National Gokul Mission.

Insurance and salary Benefits

• The Tax free gratuity limit has increased from 10 lakh to 20 lakh
• Now the bonus system is also applicable for those workers who are getting a salary up to 21000 INR per month.

Defence Sector

Defence Sector has been one of the most important part of any country as all the budget allocations for this sector would define the course of the country on security platforms. This sector has not been given much allocation in this interim budget and After having a good budget analyses, we have found that the government has sanctioned 3 lakh crore for Defence.

Other Benefits

• There is going to be a single window approval for all the Indian film makers.
• The government is also going to deliver 6 crore LPG connections under the Ujjawal bharat scheme.

So this is the budget summary that is going to help people get better living standards and country a better place.