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What's the general public's opinion of India's interim budget of 2019? Get a feel and direct insight into the views of the "Aam Aadmi" in this thread's discussion.
  • Category: India

    2019 Interim Union Budget of India - who benefits, who doesn't - let's discuss

    As you all know, the 2019 Interim Union Budget of India is being presented today by Interim Finance Minister Piyush Goyal. Will farmers benefit and will it help in the agrarian crisis which has affected many States? Will pensioners cheer? Will the cost of medicines and health services drop? Will the "Aam Aadmi" find daily requirements like rice and grains more expensive?

    Let us discuss various aspects of the 2019 Interim Union Budget of India in this one thread.
  • #657904
    In this budget, the Finance minister announced good benefits to salaried persons and farmers.
    Farmers who are having up to 2 hectares of agricultural land will be paid Rs.6000/- per annum in three equal instalments. This amount will directly go to the farmer's bank account. This will be applicable from September 2018. It is a good gain to the small farmers. 2% interest subvention to farmers pursuing animal husbandry. 2% interest subvention for the farmers affected by natural calamities. All these will make a small farmer happier.
    Full tax rebate up to 500000 rupees income to employees. The standard deduction is increased to 50000rupees. This will be happy news for all employees and middle-class people. The exemption on tax on the second self-occupied house. This will be useful for the employees who are staying in a different place and his family is staying in a different place.
    Thus from this budget middle-class people, farmers and employees will get benefitted.

    drrao
    always confident

  • #657908
    I appreciate the interim budget submitted by the FM. It is a great relief to the middle income group who has been exempted from paying tax upto Rs. 500000/-(Five lacs)

    It would have been better if all the pensioners of the country are exempted from paying taxes to our government. Most of the pensioners are the senior citizens. Else the exempted amount for pensioners should have been doubled up as Rs. 1000000 (Ten lacs) Thus, the present government would have earned the support of all pensioners of this country.

    Hope someone will read this and appraise our government.

    No life without Sun

  • #657911
    At the time of presentation of the budget the salaried class is very curious to know the sops if any announced by the Finance Minister.

    Now, today Finance Minister has proposed raising the limit of Rs 2.5 lakhs for the salaried class (Rs 3 lakhs for Seniors) to Rs 5 Lakhs. As the tax rate for this slab was 5% the people having income of Rs 5 lakhs will have a savings of tax about Rs 12500 (Rs 10000 for seniors) in one year.

    There is no change in the slab rates above Rs 5 lakhs which means that higher income persons are not given any benefit so far in slabs or slab tax rates ( 20% from 5 to 10 lakhs and 30% above 10 lakhs) in this budget.

    Some other benefits are given in terms of buying two houses after selling one property. This will save on capital gains tax significantly.

    The standard deduction is increased from Rs 40000 to 50000 and this will benefit many people by reducing their tax burden by approximately Rs 3000 in a year.

    There are special measures announced for farmers which Dr Rao has already explained.

    Knowledge is power.

  • #657916
    The major tax benefits announced/proposed in the interim budget for salaried class/middle class are indicated below:-

    1. No tax for individuals having an annual income of Rs. 5 lakh.
    2. Standard Deduction re-started last year has been increased to Rs. 50,000/- from Rs. 40,000/-
    3. Individual tax-payers with gross annual income upto Rs. 6.5 lakh will not be required to pay any tax if they invest in Provident Funds and prescribed equities.
    4. Interest income upto Rs. 40,000/- in banks and post offices has been made tax-free (earlier it was Rs. 10,000/-).
    5. TDS for home rent has been increased to Rs. 2.4 lakhs from earlier Rs. 1.8 lakh.
    6. Capital gains exemption will be available for two house properties, instead of the present one.
    7. Income tax relief on notional rent from unsold houses has been extended to two years from present one year.
    8. Income Tax returns will be processed with 24 hours and refunds will be paid immediately.

    I will try to indicate other benefits announced for other sections in my subsequent posts or articles.

    Come on, have a fight. Don't shoot and scoot.

  • #657933
    The farmers and the common man get some benefits as explained by other members. This is a budget with an eye on the election. There is nothing to complain about for anyone.

    @657916: The interest income up to Rs 40000/ is not tax-free. The Tax Deduction at Source (TDS) threshold limit on the interest earned on bank or post office deposits is raised to Rs 40,000/ from the current Rs 10,000/.

    " Be Good and Do Good "

  • #657936
    This is only an interim budget and is subject to changes and modifications later depending upon the political conditions in the country.

    However the undertone is good especially for those who have an income within Rs 5 Lakhs there is no tax. There will be a large number of people in that category and they will be away from the hassles of submitting I T Return also.

    Thoughts exchanged is knowledge gained.

  • #657945
    I have a big doubt on the budget. After going through the newspaper in detail, I understand that personnel with income beyond Rs. 5 lac are not benefitted. The slab remains the same. Supposing that a person receives an annual income of Rs. 7 lac,( with No PF or special savings) will have to pay income tax as below.
    First 2.5 lac - exempted
    For the next 2.5 lac @ 5% -Rs.12500
    For the rest 2 lac @ 20% - Rs. 40000
    Total tax to be paid Rs. 52500.



    Personnel with income beyond 5 lac are not benefitted. To get the benefit, the person has to invest his earning beyond Rs. 5 lac in PF and savings etc. ( In the above case, the person has to invest Rs. 2 lac in PF and other savings). Am I right or wrong? Tax experts, please clear this doubt.

    No life without Sun

  • #657949
    In the interim budget, our government has cleverly used the word rebate, not an exemption. In that case, the Tax will be deducted at source for income beyond 2.5 lac, and the rebate will be given only if they file their income tax return. Thus our govt ensures that every govt employee files their income return to claim their rebate. A clever pre-election move. But this won't satisfy all the taxpaying Indians.
    No life without Sun

  • #657951
    Even though the government is not agreeing to the point but one thing for sure that this budget has been presented in context to the upcoming General election which possibly going to take place during Apr'19 or May'19. We got around 90 crores individuals having the voting rights & more than 65 crores are to get the direct benefits from this budget but how come that this seems possible? There are three major areas who is being targeted here,
    1. The most important would be the unorganized sector wherein we have the small jobs or businesses with small setups like the rickshaw pullers & vendors like the vegetable sellers which we usually witness by the road side. This will make up to of around 40 crores & have been announced with the mega pension scheme in which after completion of 60 years of age they would be liable to get Rs. 3000/- per month. Investment for the same would be negligible amount like of Rs. 100/- per Month. The good thing is that the government will also compensate with the balance amount. I appreciate this as no one had ever thought of like this before.
    2. The farmers being the second most important here having the numbers of family of around 12-13 crores & if this add up to two members per family than more than 25 crores voters would come in favor of this government. Under the Pradhan Mantri — Kisan Samman Nidhi scheme, all farmers cultivating up to two hectares (5 acres) will get direct income support of Rs 6,000 annually, payable in three equal instalments of Rs 2,000 each. ... Under the Pradhan Mantri — Kisan Samman Nidhi (PM-Kisan) scheme.
    3. In the third group, Income up to Rs 5 lakh per year will be exempted from tax & this comprises of around 3 crores of the voting population & the most attractive of all.

    Instead of all the above, I do agree with #657936/Neeru Bhatt, that being the case of only an interim budget this may lead to changes and modifications later.

  • #657955
    Sun:
    Your calculation is absolutely right. The person with Rs 7 lakhs income will have to shell out Rs 52500 as tax. If such a person wants to save tax then he has to do savings under section 80C up to a maximum of Rs 1.5 lakhs and may be additional Rs 50000 in NPS or any other admissible investment.

    This provision is basically to benefit those whose income is between Rs 2.5 lakhs to Rs 5 lakhs. This is only an interim budget and we can expect some changes and modifications in coming times so let us keep a watch on the further developments in this regard.

    Thoughts exchanged is knowledge gained.

  • #658037
    Take care of
    this thread and respond therein.

    'Real knowledge is to know the extent of one's ignorance' - Confucious.

  • #658095
    Many including us still having a doubt of about why even after being an interim budget the government has come-up with such outlines but then this became very much clear from the after budget speeches of the PM Modi & FM Piyush Goyal, that the government has planned this considering the long term objectives say for ten years. Few of the facts may surprise us all considering the vision & the working style of PM Modi. Do you feel that allocating the farmers with Rs. 6000/- into their bank accounts directly would have been a success without implementing with the Demonetization? For me the answer will be "NO" because of a simple reason that many of them didn't have the bank accounts & it's only during the demonetization that this became the reality.

    I do remember the statement of our previous PM wherein he replied to the Demonetization that "in the long we all are dead". By the way it is still the people to decide about what is wrong & what is right.

  • #658239
    I have already written a detailed article on the interim budget the link of which is given below:-

    Know the key highlights of the Interim Budget for 2019-20

    But, I have realized that I have not indicated the women-specific proposals mentioned in this budget. So, I am indicating the measures taken/to be taken for the women of India. These are as follows:-

    (a) 6 crores free LPG gas connections have been provided under Ujjwala Yojna ; 8 crores to be given by the next year.
    (b) 70% of MUDRA Loan has been availed by women.
    (c) Maternity leave has been extended to 26 weeks.
    (d) Financial support for pregnant women under Pradhan Mantri Matru Vandana has been announced.

    I hope that these measures would help the Indian women.

    Come on, have a fight. Don't shoot and scoot.


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