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Budget 2019: No need to pay income tax if you earn less than Rs 5 lakh

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New Delhi, Feb 1: Finance Minister Piyush Goyal on Friday made some major announcements in this year’s interim budget, including income support for marginal farmers and a full tax rebate for the salaried class for those with an income of up to Rs 5 lakh.

As widely expected, the government announced direct annual income support of Rs 6,000 to farmers with land holding of two hectares. Goyal said the Pradhan Mantri Fund Scheme has been constituted with an aim to double farmers’ income by 2022.He said Rs 75,000 crore will be allocated for the scheme for 2019-20 and Rs 20,000 crore has been set apart in the revised estimates for the current year 2018-19.

The money will be transferred in three instalments through direct benefit transfer. The scheme, to be implemented from December 1, 2018, will be notified shortly.

Goyal also announced a mega pension scheme for those in the unorganised sector. Under the Pradhan Mantri Shram Yogi Mandhan, Goyal said, a monthly pension of Rs 3,000 will be given to those who contribute Rs 100 month before retirement. This move will benefit 10 crore workers in the unorganised sector and may become the world’s biggest pension scheme for the unorganised sector in five years, he added.

And, in a major relief for the middle class, those with an annual income of up to Rs 5 lakh will get a full tax rebate. Presenting the Budget, Goyal proposed doubling the standard deduction threshold for individual annual incomes from the current Rs 2.5 lakh to Rs 5 lakh.

Read More: Highlights of Interim Budget 2019-20

This was Prime Minister Narendra Modi-led government’s last Union Budget which could play a key role in setting the tone in BJP’s favour before the Lok Sabha Elections in April-May.

Key Highlights of Budget 2019:

1.08 pm: The government has hiked TDS limit to Rs 40,000 from Rs 10,000 on post office, bank savings.

12.52 pm: The government has increased capex for the Railways to Rs 1.59-lakh crore from the earlier Rs 1.48-lakh crore.

12.50 pm: The new tax exemption rule will be applicable from the next financial year.

12.46 pm: The income tax exemption limit increased to Rs 5 lakh from the current Rs 2.5 lakh.

12.39 pm: Individuals with gross income up to Rs 6.5 lakh will not need to pay any income tax if they make investments in provident funds and prescribed equities, says FM Piyush Goyal.

12.33 pm: Big tax benefit! Individual taxpayers with annual income up to Rs 5 lakh to get full tax rebate.

12.29 pm: Piyush Goyal thanks tax payers, and vouch for the benefits to the middle class people, including small tax payers and salaried class.

12.29 pm: “Along with completion of fiscal deficit consolidation programme, we will now focus on debt-to-GDP ratio consolidation,” says Piyush Goyal.

12.26 pm: Under SkilI India, more than 1 crore youth are being trained to earn livelyhood, says Goyal. Under the Mudra Yojana, as many as 15.56 crore loans have been disbursed amounting to 7 lak 23 thousand rupees, he said.

12.25 pm: “Within almost two years, almost all assessment and verification of the I-T returns will be done electronically by an anonymised tax system without any intervention by tax official,” says Goyal.

12.24 pm: Cost of data and voice calls in India is now possibly the lowest in the world; mobile and mobile part manufacturing companies have increased from 2 to 268, says Piyush Goyal.

12.22 pm: The GST registered MSMEs to get 2% interest subvention on 1 crore loan.

12.14 pm: 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: FM Piyush Goyal.

12.24 pm: Cost of data and voice calls in India is now possibly the lowest in the world; mobile and mobile part manufacturing companies have increased from 2 to 268, says Piyush Goyal.

12.10 pm: “A single window clearance for filmmaking to be made available to filmmakers, anti-camcording provision to also to be introduced to Cinematography Act to fight piracy,” says Goyal.

12.00 pm: Simplification of direct tax system will benefit taxpayers; direct tax reduced and tax interface made simpler and faceless to make life easier; resulting in increase in tax collections and return filings: FM Shri Piyush Goyal.

11.59 am: The government increases defence budget to Rs 3 lakh crore.

11.58 am: 2% interest subvention to farmers for animal husbandry, says FM Piyush Goyal.

11.55 am: “The defence budget has enhanced beyond Rs 3 lakh crore”: Piyush Goyal.

We have already disbursed Rs 35,000 crore for our soldiers under ‘One Rank One Pension’, substantial hike in military service pay has been announced”, says the FM.

11.52 am: The government’s Sagar Mala Project will help faster handling of import and export cars, says Goyal.

11.51 am: All farmers affected by severe natural disasters to will continue to get 2 per cent interest subvention and additional 3 per cent on timely loan repayment, says the FM.

11.49 am: Goyal says 75 per cent of beneficiaries under Pradhan Mantri Mudra Yojana are women. He added that 26 weeks of maternity leave and the Pradhan Mantri Matritva Yojana are empowering women in the country, says the FM.

11.47 am: The government to now give 8 crore LPG connections to rural households under the Pradhan mantri Ujjwala Yojana.

11.45 am: Under the Mega Pension Yojana, namely Pradhan Mantri Shram Yogi Mandhan, the government will provide assured monthly pension of Rs 3,000 per month, with contribution of Rs 100 per month for the workers in unorganised sector after 60 years of age, says Goyal.

11.42 am: High growth and formalisation of economy has resulted in increased EPFO members by 2 crore in the last two years, says Goyal.

11.37 am: “This initiative will benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore, this will enable farmers to earn a respectable living,” says Goyal.

11.31 am: To provide assured income support for small and marginal farmers, Pradhan Mantri Kisan Samman Nidhi has been approved, says Goyal. Under the Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 per year will be given for each farmer in three installments. This money will be transferred directly to the farmers’ bank accounts. The scheme is applicable for farmers with less than 2 hectares land holding, says Piyush Goyal.

11.28 am: During the 2014-18, 1.53 crore houses have been constructed under the PM Awas Yojana.

11.28 am: 21 AIIMSs are operating or being established, 14 of these have been announced since 2014, says FM Shri Piyush Goyal.

11.26 am: The government allocates Rs 60,000 crore for MNREGA in FY20.

11.11 am: “Inflation is a hidden and unfair tax; from 10.1 per cent during 2009-14, we have broken the back of back-breaking inflation,” says the FM.

11.10 am: “We have prepared the foundation for sustainable progress and prosperity for our people; we are moving towards realising the dream of New India by 2022,” says the FM.

11.10 am: “The people of India gave a strong mandate to the Government, under leadership of PM Narendra Modi, structural reforms undertaken, reversed policy paralysis and restored the nation’s image,” says Goyal.

UPDATES:

11.04 am: Finance Minister Piyush Goyal begins budget speech in the Parliament.

10.51 am: Union Cabinet has approved the interim Budget 2019-20.

Union Ministers Sushma Swaraj, Rajnath Singh, and Ravi Shankar Prasad arrives at the Parliament.

Finance Minister Piyush Goyal arrives at the Parliament with the Budget briefcase.

Finance Minister Piyush Goyal calls on President Ram Nath Kovind at Rashtrapati Bhavan before presenting the Union Budget.

9.25 am: Sniffer dog checks the printed copies of Budget 2019.

9.13 am: The Union Cabinet to meet ahead of the Budget 2019 in Parliament.

9.05 am: Copies of Budget 2019 brought to Parliament complex.

9.01 am: Union Finance Minister Piyush Goyal arrives at the Ministry of Finance. The Budget will be presented at 11am.

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Markets open on positive note

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Sensex Nifty Equity

Mumbai, Feb 20: The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a positive note during the morning session of the trade.

The BSE Sensex opened at 35,564.93 before touching a high of 35,581.14 and a low of 35,520.21.

It was trading at 35,528.69 up by 176.08 points or 0.50 per cent from its Tuesday’s close at 35,352.61.

On the other hand, the broader 50-scrip Nifty at the National Stock Exchange (NSE) opened at 10,655.45 after closing at 10,604.35.

The Nifty is trading at 10,656.25 in the morning.

IANS

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PF funds’ investment in IL&FS bonds have no government guarantee: Finance Ministry

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IL&FS Financial Service

New Delhi, Feb 19 (IANS) The provident and pension fund trusts that invested in the IL&FS bonds now fear loss of money as the debt-ridden company’s bonds are unsecured debt, and the Finance Ministry says superannuated bonds do not carry any government guarantee and all such instruments have to face all market-related risks.

“Since these are investments in bonds, the government does not ensure any guarantee on them as such and if these are invested in stock markets, they carry the market risks as applicable. It is between the bond issuer and bond holders…,” the Finance Ministry said in response to IANS queries.

Thousands of crores of money of more than 15 lakh employees of both public and private sector companies have exposure to IL&FS bonds.

However, queries sent to the EPFO Commissioner and Labour Minister Santosh Gangwar remained unanswered.

Over 50 funds that manage retirement benefits of over 15 lakh employees have exposure to IL&FS. PF trusts of state electricity boards, public sector undertakings (PSUs) and banks are among them. The provident and pension fund trusts have filed intervening applications in the National Company Law Appellate Tribunal (NCLAT) stating that they stand to lose all the money since the bonds are under unsecured debt.

Usually, retirement funds have a low-risk appetite and invest in “AAA” rated bonds (which IL&FS bonds used to be once upon a time) and get assured returns with low interest rates.

The worries of pension and provident fund trusts come from the classification of IL&FS profiling its companies as to which can meet the dues obligations. Many important trust managing funds of PSUs like MMTC, IOC, Hudco, SBI and IDBI are among those filing petitions. From private sector, HUL and Asian Paints are among the petitioners.

IL&FS is currently under resolution process at the National Company Law Tribunal (NCLT). The process will decide under Section 53 of the IBC the order of priority for distribution of proceeds of the process.

The beleaguered company has informed the NCLT that of the 302 entities in the group, 169 are Indian companies, out of which only 22 are emerging as those which can meet all obligations (green), while 10 firms can pay to only secured creditors (Amber). There are 38 companies of IL&FS (red) which cannot meet any obligations of payment, and 120 entities are still being assessed.

These PF and provident funds trusts are worried that if payment is limited to secured creditors, then only financial creditors like banks will receive the dues while unsecured bond-holders will be get any payments.

IL&FS bonds attracted investments by PF trusts as it had the shareholding of SBI and LIC giving its bonds the comfort factor.

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Sachin Bansal invests Rs 650 crore in Ola

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Bengaluru, Feb 19 (IANS) Internet entrepreneur and Flipkart co-founder Sachin Bansal has invested Rs 650 crore, or about $92 million, in ride-hailing platform Ola in his personal capacity as investor, the company said in a statement on Tuesday.

This investment is part of Ola’s larger Series J funding round. It is also the largest investment by an individual in Ola to date, it said.

“Ola is one of India’s most promising consumer businesses that is creating deep impact and lasting value for the ecosystem. On one hand, they have emerged as a global force in the mobility space and on the other, they continue to build deeper for various needs of a billion Indians through their platform, becoming a trusted household name today,” Bansal said.

He further said he has known Ola founder Bhavish Aggarwal as entrepreneur and friend over the years and that he has great respect for what he and the team at Ola have built in 8 years.

“We are extremely thrilled to have Sachin onboard Ola as an investor. Sachin is an icon of entrepreneurship and his experience of building one of India’s most respected businesses ground up, is unparalleled,” Ola CEO Bhavish Aggarwal said.

Ola integrates city transportation for customers and drivers onto a mobile technology platform ensuring convenient, transparent, safe and quick service fulfilment, the statement added.

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