Budget 2019 Highlights. Income Tax Slabs, Exemptions Limits Explained

Date: February 1, 2019

Budget 2019 Key Highlights with respect to Income Tax, Deductions, Benefits including Impact and Key Announcements in India. Is Budget 2019 Hit or Fail

Budget 2019 Highlights

The Union Budget for FY 2019 – 2020 is all here. Its critical as foundation for Upcoming Election Season

Key Announcement for 

» Poor, Backward Class 

» Village and Semi Urban

» Agricultural Sector 

expected in Budget 2019 so as to pave way for upcoming Election 2019. Mr Piyush Goyal started budget with statement

1. Average Inflation as 4.6% lower than inflation under tenor of all previous government

2. Revised Fiscal Deficit Target of 3.4% of FY 2018 - 2019 at an all time low

Key Announcement in Budget 2019

1. Reservation for Poor: 10% Reservation for Poor, Backward Classes in Job and Educational Institutions now as an additional reservation introduced, other than reservation of SC, ST to be continued

2. Allocation on MGNREGA: Rs 60000 Crore allocated for Mgnrega (Mahatma Gandhi National Rural Employment Gurantee Act) 

3. Infrastructure Development: Rs 90000 crore allocated for Road and Infrastructure development and Rs 19000 crore for Pradhan Mantri Gram Sadak Yojna in New Budget

4. Support to Small Farmer (Rs 75000 crore allocated): PM Kisan Yojna introduced for Farmers with agricultural property of less than 2 Hectare will get direct support from Government for Rs 6000 per year. Government of India will provide support by transferring Rs 2000 in 3 equal instalment to such small farmers by transferring in Bank Account. Around 12 Crore Farmers will be benefitted  

5. Cow Assistance, Animal Husbandary and Fishery: Cows, Increased Budget for Rashtriya Gokul Mission and Cow Welfare Scheme with additional Budget allocated. Also focused attention on Fisheries. 2% interest subvention is also facilitated for those in Animal husbandry & Fishery sector

6. Loan to Farmer: Assistance on Loans for Farmers with Easy Simplified Process and 3% Interest Subsidy for Timely payment of Loans. Even Higher MSP would be set this year on Farmer products so as to double Farmer Income

7. Pension Yojna: Government contribution in pension is increased from 10% to 14%.  For people in organised sector with monthly income of upto Rs 15000 will get pension of Rs 3000 per month post when they cross the age of 60 years. Even Gratuity payment limit increased from 10 Lakh to 20 Lakh

8. Free LPG Connection: 8 Crore Free LPG Connection under Ujjwal Ypjana for Semi Urban and Poor People

9. Loan to Startup: Fastest Loan Disbursement of Rs 1 Crore in 59 Minutes to MSME (Micro, Small & Medium Enterprises) with 2% interest subvention

10. Defence Budget: Defence Budget increased to highest ever Rs 3 Lakh Crore 

11. Railway: Around Rs 64500 crore for Railways in Union Budget 2019 - 2020

12. Electric Vehicle: Future would be of Electric Vehicle and special assistance will be provided on thrust of Electric Vehicle

13. Disinvestment: Rs 80000 Crore Disinvestment Target

14. Affordable Housing: Tax Benefits to Developers making Affordable House

15. GST: GST is successful as Rs 97000 crore per month is revenue under GST to Government

Direct Tax (Income Tax) Slabs FY 2019 - 20

Income Tax Assessment and Scrutiny is planned to be much easier in all digital way in next 2 years without any face to face interaction in between Taxpayer and Assessee and even all tax returns will be processed with 24 hours and refunds if any even will be processed within 24 hour. 

Due to Demonetisation - Last year saw Tax Filer increased from 3.79 crore to 6.85 crore Tax Filers. FM said that reducing tax liability on Middle Class is there key priority. Government thanks Tax Payer to provide support to Healthcare, Poor, Electricity, Infrastructure Development, Defece

Below are Income Tax Slabs for FY 2019 - 20 as announced in Union Budget 2019

Additional Surcharge (for those in High Income Bracket):  10% for Income in between Rs 50 Lakh to 1 Crore / 15% for Income above Rs 1 Crore

1. Education Cess of 2% Continues 

2. Exemption Limited u/s 80GG remained same as Rs 60000 /yr

3. Rs 50000 Standard Deduction for Salaried  (Standard Deduction raised from earlier Rs 40000 to Rs 50000)

4. TDS Limit Raised from Rs 10000 to Rs 40000 from Interest on Bank FD

5. TDS Limit on Rent Raised from Rs 1.8 Lakh to Rs 2.4 Lakh

6. Rs 50000 Interest Free Income from Fixed Deposit, Bank Deposit – Section 80D

7. Rs 50000 as Deduction under Health Insurance Premium, Medical bills for Senior Citizen

8. Income Tax for Smaller Companies with Annual Turnover upto 250 Crore is now at 25%

Capital Gain Tax on Sale of Shares - Remains Same as was in last year

» Capital Gain for on Short Term Capital Gain on Sale of Shares at 15%

» Long Term Capital Gain on Sale of shares at 10%

Vision of Government in 10 Year

» Government saying that 5 Lakh Crore Dollar Economy in next 5 years and 10 Lakh Crore Dollar Economy in next 10 Years 

» Along with Ease of Business will also come Ease of Living with Urban Transport, Electric Transport, Healthy Environment

» Digital Economy of 2030 to have complete digital Transaction and Digital India with Startup India Self Reliant

» Pollution Free India which will drive on Electric Vehicle and Energy Storage with Renewable Energy Sources

» Expanding Make in India with Focus on MSME, Rural Sector, Global Manufacturing Hub, Automobile, Defence

» Clean River with Clean Water with Efficient Use of Water

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