Highlights of the Union Budget 2019 – 2020

  1. Income Tax Exemptions
    • In a move aimed at the middle class, Finance Minister Piyush Goyal announced a full tax rebate for individual tax payers earning an annual income of Rs 5 lakhs.
  2. Defence Budget
    • The Defence Budget was increased beyond Rs 3 lakh crore.
    • The Government has disbursed Rs 35,000 crore to the soldiers under the ‘One Rank One Pension’ scheme which was pending for the last 40 years.
  3. Pension for the Unorganised Sector
    • Under the Pradhan Mantri Shram Yogi Maan Dhan Yojana, the unorganised sector workers will get a pension of Rs 3,000 per month after the age of 60.
  4. Direct Income Support for Farmers
    • Under the Pradhan Mantri Kisan Yojana, the vulnerable farmers will get direct income support of Rs 6,000 per year.
    • The scheme is applicable to farmers will less than two hectares of land.
    • This initiative will benefit 12 crore small and marginal farmers at an estimated cost of Rs 75,000 crore.
  5. Gratuity Limited Extended
    • Gratuity payment limit has been increased from Rs 10 lakhs to Rs 30 lakhs.
  6. Interest Subvention on MSMEs Loans
    • GST-registered MSME units will get 2 percent interest subvention on loan of Rs 1 crore.
  7. Simplify Direct Tax System
    • Income Tax returns will be processed within 24 hours and returns will also be paid immediately.
    • The assessment and verification of IT returns will be done electronically without any intervention by officials.
  8. Standard Deduction Raise
    • Standard deduction was raised from Rs 40,00 to Rs 50,000 per year.
  9. Changes in TDS
    • TDS threshold on rental income raised from Rs 1.8 lakh to Rs 2.4 lakh per year.
    • Also, no TDS on bank, post office interest up to Rs 40,000 as compared to Rs 10,000 earlier.
  10. Increase in Direct Tax Collection
    • Direct Tax collections have increased from Rs 6.38 lakh crore in 2013-2014 to almost Rs 12 lakh crore.
    • The tax base has also increased from Rs 3.79 crore to Rs 6.85 crore
  11. Vision 2030
    • Building next-gen infrastructure
    • Focus on digitalising India
    • Making India clean and pollution free
    • Expanding rural industrialisation to ensure massive employment
    • Clean rivers
    • Developing coastlines and inland waterways
    • Make India a launchpad for space programmes by sending an Indian astronaut in space by 2022
    • Healthy India
    • Minimum Government and Maximum Governance with proactive and responsible bureaucracy
  12. Healthcare
    • Ayushman Bharat, launched with an aim to provide medical care to nearly 50 crore people, has resulted in Rs 3,000 crore savings by families.
    • AIIMS are operating or being established of which 14 have been announced since 2014.

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