The interim budget announced on Friday afternoon is the last budget by the Narendra Modi government before the 2019 General Assembly elections. Naturally, everything that could lead to a poll victory has been packed into it. If you’ve glanced through the announcements and are not very sure about how excited you should be, here are a few things that you should know.
1) Drinks on those earning under Rs 5 lakh
For working individuals who earn up to Rs 5 lakh per annum, a complete tax rebate has been announced, which means you will not have to pay any income tax if your taxable income is Rs 5 lakh or less after all the deductions. The Indian Express reports that this will mean that savings for taxpayers in this bracket will go up to Rs 12,500. So if your soul is pining for a Starbucks hot chocolate this season, GO FOR IT.
SALARIED TAX PAYERS. _ Explained
If your taxable income is Rs 5 lakh or less after all deductions , YOU WILL NOT PAY ANY INCOME TAX.
If you income is more than Rs 5 lakh no changes.
Applicable April 2019 onwards.
Good move #Budget2019
— Faye DSouza (@fayedsouza) February 1, 2019
The report also states that since this is a rebate, and not a change in the tax slab, it will not impact the tax incidence of those with larger incomes. Although, those with salaries under Rs 10 lakh can add home loans and tuition fees to get a few additional benefits.
2) Party for those earning upto Rs 6.5 lakh p.a.
People who earn upto Rs 6.5 lakh would not have to pay taxes if they make investments in provident funds and prescribed equities, The Times of India reported. This is set to benefit about an estimated three-crore middle-class taxpayers. If you’ve been smart and taken your parents advice to invest, today is your day to scoff at your colleagues or friends who don’t have any investments.
3) Standard deduction and FD are banes no more
Finance Minister declared that the standard deductions would be hiked from Rs 40,000 to Rs 50,000. Existing deductions of Rs 15,000 for medical reimbursements and Rs 19,200 for transport allowance. Last year, former finance minister Arun Jaitley had introduced the deduction at Rs 40,000 for salaried individuals. This day belongs to those who haven’t ignored their work emails to submit investment proofs.
Photo courtesy: The Indian Express
4) Training for the youth
Under the Prime Minister’s Kaushal Vikas Yojana, 1 crore youth would be trained to earn a living. “India’s youth have turned job creators from job seekers, India has become the second largest hub for startups…75 per cent of woman beneficiaries under PM Mudra Yojana, 26 weeks of maternity leave and Pradhan Mantri Matritva Yojana, are all empowering women,” Goyal said during the session.
Although this wasn’t a full budget, the usual suspects – farmers, middleclass taxpayers, and the dream of a digital-first India – were mentioned by Finance Minister Piyush Goyal, possibly in an attempt to remind voters about this governments contribution in the last five years. However, an interim budget was presented only when the government doesn’t have enough time to present a full Budget or when general elections are close, reports The Economic Times.
