The key highlights of the Interim Budget 2019–20 presented by Shri Piyush Goyal in Parliament today are as follows:
- Persons having Total Income upto Rs. 5 lakh exempted from Income Tax. Basic Exemption limit and Tax Slab has been remain unchanged. Therefore persons having income more than 500000 would not get any benefit and would be taxable at the same rate as was in last year.
- Standard Deduction for salaried persons to be raised to Rs. 50,000 from Rs. 40,000
- TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits. Bank would deduct TDS only if Interest income exceeds Rs.40,000 in a year.
- Tax exempted on notional rent on a second self-occupied house. No tax to be paid on Notional rental income on 2nd House Property
- TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000
- Benefit of rollover of capital gains u/s 54 increased from investment in one residential house to two residential houses for capital gains up to Rs. 2 crore.
- Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
- Tax exemption period on notional rent, on unsold inventories of builders, extended from one year to two years
- 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN
- 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.
- Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
- Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month
MSME and Traders
- 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs
- Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs
- Capital support of Rs.64,587 crore proposed in 2019–20 (BE) from the budget
- Overall capital expenditure programme to be of Rs. 1,58,658 crore
- Defence budget to cross Rs 3,00,000 crore for the first time ever
- The Government to make 1 lakh villages into Digital Villages over next five years
- 22nd AIIMS to be setup in Haryana
- Rs. 60, 000 crore allocation for MGNREGA in BE 2019–20
- 25% additional seats in educational institutions to meet the 10% reservation for the poor
- Allocation to be increased by 21% to Rs. 58,166 crore in 2019–20 BE over 2018–19 BE for North east
- New National Artificial Intelligence portal to support National Program on Artificial Intelligence
- Fiscal deficit pegged at 3.4% of GDP for 2019–20
- Target of 3% of fiscal deficit to be achieved by 2020–21.
- Fiscal deficit brought down to 3.4% in 2018–19 RE from almost 6% seven years ago
- Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019–20 BE
- Capital Expenditure for 2019–20 BE estimated at Rs. 3,36,292 crore
- Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019–20
- National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019–20
- Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019–20
- Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes -
- Allocation for SCs increased by 35.6% — from Rs. 56,619 crore in BE 2018–19 to Rs. 76,801 crore in BE for 2019–20
- Allocation for the STs increased by 28% — from 39,135 crore in BE 2018–19 to Rs. 50,086 crore in 2019–20 BE
- Government confident of achieving the disinvestment target of 80,000 crore
- Focus now on debt consolidation along with fiscal deficit consolidation programme