As the economics saying goes: “Budget is actually a vision for macro-economic policy promoting overall economic growth”. Finance minister Piyush Goyal presented the sixth and hence, the interim budget 2019-2020 on Friday. The interim budget is widely expected to focus on giving big push to investment in agriculture, small and medium industries, and health sectors. During last 5 years tenure, government has taken many hard decisions to curb black money and push GDP. After demonetization more than 1 crore assesees have filed income tax return for the first time. In this interim budget finance minister has tried to woo middle class with tax breaks, farmers with sops. The tax breaks for the salaried, middle class, pensioners is being welcomed and is far more than expectations.
With the additional tax rebate, an individual with total income up to Rs. 5 lakhs will have no tax to be paid. Individuals with gross income of up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities. It is very important that there is no increase in threshold limit of Rs 2,50,000. Increase in TDS threshold limit on Interest & rental income has brought cheer on the face of pensioners and retired people whose only source is income from Interest & house property, now they don’t have to file ITR and claim refund. In my opinion increase of TDS threshold on interest on bank and post office deposits from Rs 10,000 to Rs 40,000 and TDS threshold on rental income from Rs 1.8 lakh to Rs 2.4 lakh was due for long and much awaited.
The Interim Budget presented by Piyush Goyal marks a high point in the policy directions that the government has given to this nation. Interim Budgets are also an opportunity for the government of the day to introspect their performance of the last five years and place its facts before the people. Between 2014-19, every Budget has given significant relief to the middle class. Overall the Budget lived up to government’s motto of “sabka sath sabka vikas” and ‘minimum Government maximum Governance’. As we know 2019 is the year of Lok Sabha Election, this budget could be a game changer among middle class.
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