Finance minister Piyush Goyal made major announcements in the interim Budget 2019 which included farm relief package, full tax rebate for income up to Rs 5 lakh, pension scheme for the unorganised sector among others.
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Below are the 10 key highlights of finance ministry Piyush Goyal's speech:
In a major relief to the salaried class, Goyal announced full tax rebate for income up to Rs 5 lakh crore. Individuals falling under the said tax slab will get full tax rebate. This translates to a benefit of Rs 18,500 crore to more than 3 crore taxpayers.
Farm relief package: The much talked about farm relief package did get a place in the budget announcement with Goyal proposing a farm relief package of Rs 6,000 per year to farmers owning two hectares of land. This, he said, will cost the government Rs 75,000 crore.
Pension Scheme for unorganised sector: The government announced an allocation of Rs 500 crore for a mega pension scheme, Shram Yojana, for the unorganised sector. For those who have reached the retirement age, 60, will get a monthly pension of Rs 3,000.
TDS limit increased: The tax deduction at source (TDS) limit, the government said, will be hiked from Rs 10,000 crore to Rs 40,000 crore on post-office savings.
Gratuity limit increased: The government also increased the gratuity limit from Rs 10 lakh to Rs 30 lakh. Any person who completes 5 years in an organisation is eligible for gratuity.
Fiscal deficit target revised: Goyal, in his speech, said the revised fiscal deficit target for 2018-19 is at 3.4 percent from the earlier 3.3 percent. The current account deficit, he said, will be contained at 2.5 percent.
Capital gains exemption: Capital gains exemption under Section 54 has been increased to Rs 2 crore and will be available on two house properties.
Expenditure: The expenditure target for FY20 is at Rs 27.84 lakh crore while the capital expenditure target is at Rs 3.36 lakh crore.
MGNREGA and Pradhan Mantri Gram Sadak Yojana: An amount of Rs 19,000 crore has been allocated for Pradhan Mantri Gram Sadak Yojana and Rs 60,000 crore for MGNREGA this year.
Divestment target: The government said it is confident to reach the divestment target of Rs 80,000 crore. The target for FY20 has been pegged at Rs 90,000 crore.
First Published: Feb 1, 2019 1:33 PM IST