However, keeping in view the practicalities for the urban middle class, the proposals have extended this benefit to reinvesting into up to two residential homes instead on one subject to a limit of Rs 2 crore. Although the convention is that a government facing re-election does not make any major taxation or spending proposals that would tie the hand of the next government, which would present the full Budget subsequently, Goyal's speech laid out a series of appeals and promises to different sections of the electorate.
The move, months before general elections, is likely to benefit 12 crore farmers. Crucially, the scheme was introduced with retrospective effect, so that Rs 20,000 crore was budgeted for the income transfer in the ongoing fiscal year.
Now, as per news website Alt News, "The interim finance budget does not propose any changes in tax slabs but expands the scope of tax rebate (Rs 12,500 from Rs 2,500) and standard deduction (Rs 50,000 from Rs 40,000)". The existing income tax exemption limit is Rs 2.5 lakh, and including tax rebate, no tax is payable on income up to Rs 3 lakh. Per current tax law, any individual owning an additional house property other than the one used for one's own accommodation was taxed on the basis of computing a notional rental income based on the standard rent of the area.
The government has also proposed rollover of capital gains up to Rs 2 crore towards buying (investing) two houses compared to only one under the present one unit only.
"All interest income above Rs 40,000 from bank deposits will now get taxed, and not Rs 10,000". But PM said that your job is only aggregation, you budget for whatever has come. The government's total expenditure is estimated to increase 13.3% in 2019-20 from the revised estimates for the current year. It also announced relief to real estate developers by extending a tax rebate on the development of affordable housing till the next fiscal.
While doing so, Goyal allowed the government's commitment to fiscal consolidation to slip further. "The GDP growth during this five-year period will be about 7.5 per cent".
Goyal kept the government's disinvestment target of Rs 80,000 crore for 2018-19 and increased it to Rs 90,000 crore for next year. "It turns out that the Budget 2019 was a full-fledged budget with major policy decisions being announced including pension scheme for unorganised sector and direct subsidy to small farmers", he said. It will give a boost to consumption across rural and urban India. Here is our analysis on what promises the budget have for the masses and what would be their implication?
- ICC announces fixtures for Men's T20 World Cup 2020
- Nintendo delays its very first Mario Kart game for mobile
- Trump Says No Final Deal With China Until He Meets President Xi
- Joe Schmidt issues World Cup warning to ‘bullied’ and ‘bruised’ Ireland
- Trump reverses course, says he and U.S. intelligence ‘in agreement’
- Klitschko faces must-win bout against Fury
- Time to come home: Trump defends troops withdrawal from Middle East
- Fed Shifts to 'Patient' Policy on Rate Hikes
- Defoe strengthens Euros case
- Talent Not an Issue for England's New Manager