Interim Budget: Income tax exemption raised, farmers to get cash dole

New Delhi, Feb 1 Making a strong re-election pitch, the BJP-led NDA government Friday reported the biggest income tax sops for middle-class, including total exemption for income up to Rs 5 lakh, and Rs 6,000 yearly money dole to poor farmers in a plan that will cost Rs 75,000 crore for every year.

Converting a vote on account speech into an almost full- fledged budget announcement in Lok Sabha, Finance Minister Piyush Goyal proposed a variety of motivating forces for both white collar class and ranchers, whose disenchantment was said to have cost the BJP dearly in recent assembly elections.

More than three crore salaried class, retired people, self- employed and small businesses will spare Rs 18,500 crore in pay assess every year after as far as possible was multiplied to Rs 5 lakh for the next fiscal from current Rs 2.5 lakh.

Also, standard deduction was raised to Rs 50,000 from current Rs 40,000.

TDS edge on interest from bank and post office deposits has been raised from Rs 10,000 to Rs 40,000.

Presenting the interim Budget, Goyal said capital gains of up to Rs 2 crore made from sale of immovable property would now invested in two residential houses as against current practice of exempting such income if invested in one house within a year.

However, it can be exercised once in a lifetime, he stated, including the current tax slabs of 20 percent tax on income between Rs 5 lakh and Rs 10 lakh and 30 percent tax on earnings of over Rs 10 lakh would proceed in the next fiscal year beginning April 1, 2019.

Also, TDS threshold for deduction of tax on rent has been increased to Rs 2.4 lakh from current Rs 1.8 lakh.

As was widely anticipated, he announced an income support scheme for 12 crore little and minor agriculturists by giving Rs 6,000 in their bank accounts in three equal instalments in a year.

The eligibility for the plan, called Pradhan Mantri Kisan Samman Nidhi, will be responsibility for than 2 hectares of cultivable land.

The plan will be executed from the current fiscal year, where it will cost Rs 20,000 crore. For the next fiscal year, the allocation will jump to Rs 75,000 crore.

The farm income support scheme will result in the government breaching its 3.3 percent fiscal deficit target from the current year.

For next fiscal, he pegged fiscal deficit at 3.4 percent of the GDP, up from fiscal consolidation roadmap of bringing it down to 3.1 per cent in 2019-20 and 3 per cent in 2020-21.

"We would have kept up fiscal deficit at 3.3 percent for the year 2018-19 and found a way to consolidate fiscal deficit in the year 2019-20.

"However, considering the requirement for income support to agriculturists, we have given Rs 20,000 crore in 2018-19 RE (Revised Estimate) and Rs 75,000 crore in 2019-20. On the off chance that we avoid this, the fiscal deficit would have been under 3.3 percent for 2018-19 and under 3.1 percent for the year 2019-20," he said.

fiscal deficit for 2018-19 has been pegged at 3.4 percent and current record deficiency at 2.5 percent.

Justifying inclusion of tax proposals in an interim budget, he stated, "However according to tradition, the main tax proposals will be presented in regular budget, small taxpayers especially middle class, pay workers, retired people and senior subjects require assurance in their minds at the beginning of the year about their taxes.

"Therefore, proposals, particularly relating to such class of persons should not wait."

Goyal, who was made the interim finance minister after Arun Jaitley had to rush to New York for medical treatment a month ago, said what he presented was not merely an interim Budget, but a medium of the country's development journey.

"All the transformation that we are seeing is a direct result of the enthusiasm of the general population of our country. The credit goes to them as it were. Advancement has turned into a mass-development amid the time of our legislature.

"We will change India into a main country of the world with the help of our kin. We along with them have laid the foundation. A terrific structure will be raised with their help. We have given a conclusive authority, whose purpose is clear, strategy is transparent and integrity is resolute," he said.

The NDA Government, he stated, has established the foundation for India's development and development for times to come.

"We have resolved many problems which were coming in the way for understanding our maximum capacity as a general public and an economy. We are ready to wind up a USD 5 trillion economy in the following five years and seek to end up a USD 10 trillion dollar economy in the following eight years from that point," he said.

Goyal raised allocation of rural employment guarantee scheme MNREGA to Rs 60,000 crore for 2019-20.

"We have arranged the establishment for economical advancement and thriving for our kin. We are moving towards understanding the fantasy of New India by 2022," he said in his 100-minute discourse.

The Finance Minister said India has been all around perceived as a brilliant spot on the planet economy. "We are the quickest developing bigger economy on the planet today".

Seeking to address worries over ranch trouble, the fund serve said the administration has taken a "notable" choice to fix the base help value (MSP) of 22 advised harvests at any rate 1.5 occasions of creation cost.

Terming inflation as hidden and unfair tax, he said the government has "crushed the spirit of overwhelming swelling".

Inflation stood at just 2.1 percent in December 2018 from 10.1 percent during 2009-14. Fiscal deficit has been brought down to 3.4 percent in the reconsidered gauge of 2018-19.

"If we had not controlled inflation our families would have been spending 35-40 percent more on daily use items," the finance minister said.

On non-performing advances (NPA), Goyal said Rs 3 lakh crore has been recuperated by banks and lenders with usage of Insolvency and Bankruptcy Code. "Recapitalisation of banks adding up to Rs 2,6 lakh crore has been finished".

Talking about Swachh Bharat mission, the fund serve said that more than 98 percent country sanitation inclusion has been accomplished. More than 5.45 lakh towns pronounced open crap free.

Goyal said the pace of construction of rural roads has been tripled in the last five years. Amid 2014-18, 1.53 crore houses have been developed under PM Awas Yojana.

He said 10 lakh patients have been dealt with so far under Ayushman Bharat scheme, the world's biggest human services program. The plan was launched to give restorative consideration to provide medical care to nearly 50 crore people, resulting in savings of Rs 3,000 crore for poor families.

Goyal also reported another AIIMs, the 22nd in the nation, in Haryana. He said as of now 21 AIIMs are working or being built up in the nation, of which 14 have been reported since 2014.

The government declared setting up of Rashtriya Kamdhenu Aayog to enhance profitability of cows. It provided 2 percent intrigue subvention to farmers involved in animal husbandry and fishery.

Goyal said the government has provided 10 percent reservation to the economically weaker section in educational institutions and the government jobs. This has been managed without disturbing existing reservation system.

He said India attracted USD 239 bn in FDI in most recent five years