Government

2019 Budget Highlights

New Tax Rates, Tax Exemptions, Common man beneficiaries, New GST, GST Excemptions

The Indian Finance Minister Piyush Goyal Yesterday released temporary budget for the financial year 2019-2020 with Rs 27.84 Lakh Crores. The highlights of the 2019 budget are, the ones who are earning up to 5, 00,000/- per annum are exempted from the Income Tax, the standard deduction has been increased from RS 40,000 to Rs 50,000 which will directly benefit the employees whose income is above Rs 5, 00,000/- , tax exemption on the second house rent, an amount of RS 6000/- in three installments will be issued to the farmers who are having land up to 2 Acres, A Rs 3,000/- monthly pension will be issued to those who are working in unorganized sectors for a monthly contribution of RS 55/- to Rs 100/- depending on their age.

New Tax Rates in India 2019:

Income New Tax Rate
Up to Rs 2,50,000/- NIL
RS 2,50,000/- to RS 5,00,000/- NIL
RS 5,00,000/- to RS 10,00,000/ 20.80%
RS 10,00,000/- to Rs 50,00,000/- 31.20%
RS 50,00,000/- to Rs 1,00,00,000/- 34.32%
Rs 1,00,00,000/- and Above 35.88%
  • Rs 12,500/- rebate for the income up to Rs 5, 00,000/- per annum.
  • 4% of Tax liability will be added as Cess.
  • 10% surcharge on RS 50, 00,000/- to Rs 1, 00, 00,000/-.
  • 15% surcharge on Rs 1, 00, 00,000/- and above.

Highlights of Budget 2019:

  • Tax assessment will be done electronically within 2 years.
  • IT returns processing in just 24 hours.
  • 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.
  • Full Tax rebate up to 5 lakhs annual income after all deductions.
  • Standard deduction has increase from RS 40,000/- to RS 50000/-
  • Exempt on tax on second self-occupied house.
  • Ceiling Limit of TDS u/s 194A has increased from RS 10000/- to RS 40000/-
  • Ceiling Limit of TDS u/s 194I has increased from RS 180000/- to Rs 240000/-
  • 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.

Highlights of Budget 2019 in Other Sectors:

  • State share has increased to 42%.
  • PCA restriction has abolished from 3 major banks.
  • 2 lakhs seats will increase for the reservation of 10%.
  • 60000 crores for manrega.
  • 1.7 Lakh crore to ensure food for all.
  • 22nd AIIMS Approval in Haryana State.
  • Approval has to be given to PM Kisan Yojana.
  • Rs. 6000 per annum has to be given to every farmer having up to 2 hectare land. This will be applicable from September 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.
  • Tax free Gratuity limit increase to 20 Lakhs from 10 Lakhs.
  • 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.
  • 2% interest relief for MSME GST registered person.
  • 26 weeks of Maternity Leaves to empower the women.
  • More than 3 Lakhs crores for defense.
  • One lakh digital villages in next 5 years.
  • Single window for approval of India film makers.

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