On Friday, the interim Union budget was presented by the interim finance minister Piyush Goyal in the Lok Sabha. The key highlights of the budget were :
- A full tax rebate for individual taxpayers with less than 5 lakh annual income.
- Standard deduction increased to Rs 50,000 from Rs 40,000 for salaried people.
- Individuals with gross income up to 6.5 lakh rupees and making investments in provident funds and prescribed equities, will not need to pay any tax.
- TDS threshold raised from 1.8 lakh to 2.4 lakh on rental income.
- Gratuity limit increased from 10 lakh to 30 lakh rupees.
- Interest income up to Rs 40,000 in post offices and banks made tax free.
- Income tax refunds will be processed within 24 hours and released immediately.
- Capital tax gains exemptions under Section 54 to be available up to Rs 2 crore. Benefit of rollover of capital tax gains to be increased from investment in one house property to two house properties.
- Farmers who have less than 2 hectare of lands will get Rs 6,000 per year in three equal installment.
- 2% interest subvention to farmers who pursue animal husbandry, fisheries jobs through Kisaan credit cards.
- A single window clearance for filmmakers.
- Anti-Camcording provision to be introduced to the Cinematography Act to fight against film piracy. To which, Paresh Rawal said, “Sirf abki baar nahi, baar baar Modi Sarkar (Not only this time, but again and again Modi government).”
- Direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore. The tax base is up from Rs 3.79 crore to 6.85 crore
- Businesses with less than Rs 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns.
- Two per cent interest subvention on loan of 1 crore for GST registered MSME units.
- Pradhan Mantri Shram Yogi Mandhan Yojana, to provide assured monthly pension of 3000 rupees for workers in unorganized sector post-retirement.
- Rs 60,000 crore for MNREGA.
- Defence budget increased to over Rs 3 lakh crore and additional funds will be provided, if needed.
- Benefits under Section 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-2020.
“We are poised to become a 5 trillion dollar economy in the next five years, we aspire to become a 10 trillion dollar economy in the next eight years”, said Piyush Goyal. This can be Modi government’s last ball sixer for the upcoming general elections. The only wait is to see if the Parliament approves the budget or not.
