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Budget 2019: Piyush Goyal woos middle class with tax cuts, farmers with sops and more

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New Delhi, Feb 1: Finance Minister Piyush Goyal on 1 February presented Narendra Modi government's sixth and final Budget, which was an interim one, keeping up with established tradition. This was the last Budget of the BJP-led NDA government ahead of the General Election.

Budget 2019 LIVE: Piyush Goyal presents Interim Budget

The Budget will seek Parliament's nod for spending for four months till a new government is sworn-in.

Goyal announced big cheer for the salaried and middle-class taxpayers. In a huge boost, taxpayers with income up to Rs 5 lakh will get full rebate, standard deduction was raised by Rs 10,000, capital gains benefit for those selling a house property and reinvesting the proceeds, huge jump of Rs 30,000 in the threshold for TDS on bank interest and income from post office investments.

Even the TDS threshold on rental income was hiked substantially from Rs 1.8 lakh to Rs 2.4 lakh, thereby giving relief to landlords.

A big income support scheme for farmers by the name of Pradhan Mantri Kisan Samman Nidhi, a pension scheme for unorganised workers called Pradhan Mantri Shram Yogi Mandhan, financial support for cos and fisheries are the key highlights of the big budget push towards rural and poor.

In his speech in Lok Sabha, finance minister Piyush Goyal announced annual support of Rs 6000 per year for farmers holding land below 2 hectares. The gratuity limit has been pegged at Rs 30 lakh. There is a 2% interest subvention for farmers engaged in fisheries and animal husbandry. On the jobs front, the finance minister said that a fast-growing economy is creating jobs based on EPFO data and that sectors like solar have created lakhs of jobs.

Here are the highlights:

Newest First Oldest First
2:22 PM, 1 Feb
“Those sitting in AC rooms cannot understand the plight of the small farmers. Keeping this in mind, we have introduced Pradhan Mantri Kisan Samman Nidhi scheme. This is a historic decision,” Piyush Goyal said.
2:22 PM, 1 Feb
Finance Minister Piyush Goyal said that the budget touched lives of people from every section. He also said that the previous governments have only taken such major steps to better the lives of farmers in words but never implemented them.
12:49 PM, 1 Feb
Finance Minister Piyush Goyal says that this country is changing due to the "josh" (enthusiasm) of the people. Goyal concludes his Budget speech with the quote, " Ek paav rakhta hun, hazaar raahein phoot padti hai." which literally means one step opens up a thousand roads.
12:49 PM, 1 Feb
Finance Minister Piyush Goyal says this is not just an interim budget, "ye desh ka vikas yatra ka madhyam hai (It's the route to country's development)." He says that benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-20.
12:48 PM, 1 Feb
All interest income above Rs 40,000 from bank deposits will now get taxed, and not Rs 10,000. There will be no tax on notional rent on second self-occupied house and no TDS on house rent up to Rs 2.4 lakh, says Piyush Goyal.
12:48 PM, 1 Feb
Those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have to pay no tax. The move is set to benefit nearly Rs 3 crore middle class income earners.
12:47 PM, 1 Feb
No tax on notional rent on second self-occupied house and no tds on house rent up to Rs 2.4 lakh
12:45 PM, 1 Feb
“Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 2 crore rupees; can be exercised once in a lifetime. India became one common market with implementation of GST,” finance minister Goyal said.
12:39 PM, 1 Feb
TDS threshold on interest on bank and post office deposits raised from 10,000 to 40,000 rupees. Income tax will be levied on second self-occupied house, announces Piyush Goyal.
12:37 PM, 1 Feb
Standard deduction has also been raised to Rs 50,000 from Rs 40,000
12:37 PM, 1 Feb
So those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have to pay no tax. Will benefit nearly Rs 3 crore middle class income earners
12:34 PM, 1 Feb
Finance Minister Piyush Goyal proposed to increase income tax exception limit to Rs 5 lakh. For the current financial year, the income tax slabs will be the same.
12:30 PM, 1 Feb
Goyal thanks taxpayers for their contribution toward the well being of the society and providing basic amenities to the poor. "The tax you pay will provide healthcare to 50 crore brothers, sisters and children," he says
12:30 PM, 1 Feb
Confident of reaching Rs 80,000 Cr divestment target
12:27 PM, 1 Feb
Expenditure target for FY20 is at Rs 27.84 lakh crore and FY20 fiscal deficit target is at 3.4%
12:27 PM, 1 Feb
Expenditure target for FY20 at Rs 27.84 lakh cr: FM Goyal
12:27 PM, 1 Feb
Fiscal deficit for the year 2019-20 has been pegged at 3.3 percent. "We could have clocked fiscal deficit at 3.4 percent but we have provided Rs 20,000 crore for farmer aid in this year and Rs 75,000 crore for the next year," Piyush Goyal says.
12:25 PM, 1 Feb
“India will lead the world in transport through electric vehicle (EV) and energy storage devices”, FM said.
12:25 PM, 1 Feb
Placing an Indian astronaut in space by 2022 is also a part of Vision 2030
12:23 PM, 1 Feb
The finance minister said that making India pollution-free is the government’s vision. “This India will drive on electric vehicles, India will lead the world in energy efficiency and use of renewable energy. Increasing employment opportunities in rural areas,” Piyush Goyal said.
12:23 PM, 1 Feb
To build a DigitalIndia that reaches every citizen, our youth will lead us in this, by creating innumerable startups and jobs. Build a quality science-based education sector.
12:22 PM, 1 Feb
Electric vehicles a key part of govt's vision for 2030: FM
12:22 PM, 1 Feb
In September 2017, PM Modi had exhorted Indians to "resolve" and "vow" to "contribute positively" to society ahead of 2022, when India celebrates its 75th year of Independence. In the budget, Piyush Goyal has extended that to explain what Modi's vision for India till 2030.
12:17 PM, 1 Feb
We are poised to become a 5 trillion dollar economy in the next 5 years and we aspire to become a 10 trillion dollar economy in the next 8 years
12:17 PM, 1 Feb
18% increase in direct tax collections in 2017-18, 1.06 crore people included in the tax base. Also, more than 1 crore people filed IT returns for the first time, after demonetisation
12:16 PM, 1 Feb
Committed to eliminating the scourge of black money; anti-black money measures taken have brought an undisclosed income of about 1.30 lakh crore rupees to the fore; 3.38 lakh shell companies were deregistered
12:16 PM, 1 Feb
GST collections in January 2019 has crossed Rs 1 lakh crore
12:16 PM, 1 Feb
GST has been continuously reduced resulting in relief of Rs 80,000 crore rupees to the consumers
12:16 PM, 1 Feb
Speaking on Demonetisation while reading out Budget speech, Finance Minister Piyush Goyal says that the noteban was a drive against black money. "we are committed. There are anti-black money measuresin place," he says.
12:14 PM, 1 Feb
Most items of daily use are now in the 0-5% slab making GST beneficial for the middle class
READ MORE

Here's what to expect from 2019-20 Interim Budget:

Agriculture

  • Farm relief package itself could run to at least Rs. 1 lakh crore ($14.04 billion)
  • Set to earmark about Rs. 1.8 lakh crore for food subsidies in the fiscal year
  • Expected to waive premium for taking insurance policy for food crops
  • Proposal for waiving interest on crop loans for farmers who pay on time

Divestment

  • Target of about $11 billion from state asset sales in FY 2019-20
  • Potential stake sales via IPOs include Telecommunications Consultants India, Indian Railways' subsidiaries IRCTC, RailTel Corp India and National Seeds Corp
  • Metals
  • Gold - Speculation around a duty cut
  • Health
  • Budget allocation for health is likely to increase by 5 per cent from a year ago
  • Taxes
  • An anticipated corporate tax rate cut to 25 per cent from 30 per cent may be put on hold until after the elections
  • Higher tax exemptions for the middle class and for small businesses anticipated
  • Banks
  • Discount of 2 percentage points on loans for businesses with annual sales of less than Rs. 5 crore; government to compensate banks for the costs
  • Rs. 4,000 crore-rupee capital infusion for public-sector general insurers

Autos

  • Reduction of goods and services tax (GST) on electric vehicles and batteries

IT/Telecom

  • Better digital infrastructure in rural areas
  • Abolition of the angel tax to boost start-ups
  • Exemption from GST for spectrum and licence fee payouts, reduction in spectrum fees and cuts in import duty on telecom equipment (currently at 20 per cent)

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