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

Budget piyush goyal

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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