OUTCOME OF BUDGET 2019 SPEECH BY FINANCE MINISTER

MAJOR OUTCOME OF BUDGET SPEECH OF OUR FINANCE MINISTER, SHRI PIYUSH GOYAL ON 1^ST FEBRUARY, 2019:

1.       Farmers with less than 2 hectares of Agri Land, will be given Rs. 6,000 p.a. transferred to their bank accounts directly in 3 equal instalments.

2.       Rashtriya Kamdhenu Scheme for Cow Welfare (GoSeva).

3.       2% Disocunt on Interest for Fisheries Farmers and Animal Husbandry Farmers.

4.       Farmers repaying loans in time, will get additional Discount on Interest of 3% (over and above existing 2%).

5.       In National Pension Scheme for Government workers, government Contribution increased from 10% to 14%.

6.       Bonus to Workers drawing salary of Rs. 21,000, increased from Rs. 3,500 to Rs. 7,000 p.a.

7.       In case of accident of Government Workers, compensation increased from Rs. 2.5 lacs to Rs. 6 Lacs.

8.       New Pradhan Mantri Shram Yogi Maandhan Yojana, under which a contract labourer working in unorganised sector, drawing salary upto Rs. 15,000 per month, assured monthly pension scheme of Rs. 3,000 per month for a minimal contribution of Rs. 100 Per month.

9.       Board for Welfare of Nomadic and Semi-Nomadic (deprived Indians) formed to look after their welfare.

10.   2 Crore more Indian women will be provided free LPG Connection under Ujjwala Yojana.

11.   2% discount in interest on loans to MSME.

12.   The Defence budget increased to Rs. 3 Lacs Crores.

13.   Internal Solar Alliance – an inter-government co-operation platform for solar energy, Its head quarters established in India.

14.   Operational Airports increased to 100 in India and Passenger traffic doubled in Airways due to UDAAN Yojana.

15.   Moblie data consumption multiplied 50 times in last 5 years, showing the growth of Digital India.

16.   1 Lacs digital village to be developed in next 5 years.

17.   34 Crores Jan Dhan Accounts opened under Jan Dhan Yojana in Last 4 years, enabling direct benefit transfer.

18.   Single Window system for all cinema industry clearances.

19.   Income Tax Collections doubled and Tax Payers increased by 80% in last 5 years.

20.   99.54% Returns filed were accepted without any inquiry or scrutiny.

21.   In next 2 years, all Returns filed will be processed in 24 hours, as compared to existing time line of around 2-3 months and all scrutiny / inquiry will be fully digital.

22.   After Demonetisation, 1 Crore new taxpayers are added who filed their ITR for the first time.

23.   Basic Exemption Limit Increased to Rs. 5 Lacs from existing limit of Rs. 2.5 Lacs, i.e. it is doubled. Meaning no Income tax on income upto Rs. 5 Lacs.

24.   For Salaried taxpayers, standard deduction increased from Rs. 40,000 to Rs. 50,000

25.   Now, 2 house are allowed as SOP i.e. no notional rent will be taxed for 2 Self occupied houses, increased from 1 house earlier.

26.   TDS Limit on Interest from Bank increased from Rs. 10,000 to Rs. 40,000.

27.   TDS limit on Rent increased from Rs. 1.8 Lacs to Rs. 2.4 Lacs

28.   Capital gain tax on sale of residential house upto Rs. 2 Crore can now be invested in 2 newly purchased / constructed residential houses as compared to 1 new house earlier.

29.   For housing project developers, the exemption for affordable housing projects registered upto 31.03.2020, as compared to earlier date of 31.03.2019, will be eligible for exemption under section 80IAB.

Disclaimer: The above is extract of speech of our Finance Minister. One is advised to take due legal consultation and opinion before acting on any of above statements.

Thanks and regards,

AGARWAL & JAIN

CHARTERED ACCOUNTANTS.