Budget 2019| Tax gift for ‘honest taxpayer’, cash for farmers: FM Piyush Goyal’s top 5 announcements
The government announced tax exemption for individuals earning up to Rs 5 lakh per annum. Finance Minister Piyush Goyal also proposed to increase the standard deduction from the existing Rs 40,000 to Rs 50,000, a proposal will benefit 3 crore people.Updated: Aug 16, 2019 17:22 IST
The NDA government’s last budget before the Lok Sabha polls was focused on the middle class, farmers and the poor. Finance minister Piyush Goyal said the budget will touch lives of people from every section. He said the Narendra Modi government managed to break the back of back-breaking inflation putting more money in the hands of the people.
Cash benefit for farmers
Rs 6,000 per year assured income support will be given to small and marginal farmers having less than two hectares of land.
Around 12 crore farmers will receive the cash benefit. The money will be transferred into bank accounts of farmers in three equal instalments. The finance minister said Rs 20,000 crore have been provided for current fiscal, 2018-19 under PM Kisaan scheme.
Income tax relief
The government announced tax exemption for individuals earning up to Rs 5 lakh per annum. Finance Minister Piyush Goyal also proposed to increase the standard deduction from the existing Rs 40,000 to Rs 50,000, a proposal will benefit 3 crore people. The TDS (tax deduction at source) threshold on interest from bank, post office deposits has been raised from Rs 10,000 to Rs 40,000. The finance minister further proposed to increase the TDS threshold on rental income from Rs 1.8 lakh to Rs 2.4 lakh.
Pension for labourers
A mega pension scheme for the unorganised sector workers with an aim to benefit 10 crore people was unveiled at the budget. The beneficiaries will get assured monthly pension of Rs 3,000 after reaching the age of 60 years. “We are launching Pradhan Mantri Shram Yogi Mandhan today. The scheme will provide assured monthly pension of Rs 3,000, with contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age,” Goyal said.
An outlay of Rs 3.05 lakh crore has been set aside for the defence budget for 2019-20 which was a hike of around Rs 20,000 crore compared to allocation of Rs 2.85 lakh crore in the current fiscal. Piyush Goyal said additional funds, if necessary, would be provided to secure the country’s borders and maintain defence preparedness.
The government proposed to set up a national commission, the Rashtriya Kamdhenu Aayog with the initial capital of Rs 500 crore for the welfare of cows. “Happy to announce setting up of Rashtriya Kamdhenu Aayog. Government will never step back from protection of the Gau Mata,” said finance minister Goyal.