Budget Impact

BUDGET ALLOCATION
  • SECTORS
  • 2019-20
  • 2018-19
  • 2017-18
  • Agriculture
  • 1,40,764
  • 57,600
  • 51,026
  • Railways
  • 66,769
  • 55,088
  • 55,000
  • Defence
  • 4,31,011
  • 4,04,365
  • 3,59,854
  • Infrastructure
  • 1,46,923
  • 1,27,812
  • 1,19,399
  • Education
  • 93,848
  • 85,010
  • 79,686
  • Health
  • 65,038
  • 53,506
  • 50,281
  • Social Sector
  • 2,15,212
  • 1,94,393
  • 1,79,836
All the above figures are in rupee crore, Source: HowIndialives.com
A file photo of former finance minister P. Chidambaram. (Hindustan Times)
A file photo of former finance minister P. Chidambaram. (Hindustan Times)

Never has an interim budget tinkered with tax rates: P. Chidambaram

  • Interim budget 2019 shows the desperation of the NDA, says P. Chidambaram
  • Chidambaram said the budget presented by the NDA govt violated both convention and the spirit of an interim budget

Finance minister Piyush Goyal with his Cabinet colleagues outside the North Block on Friday (Ramesh Pathania/Mint)
Finance minister Piyush Goyal with his Cabinet colleagues outside the North Block on Friday (Ramesh Pathania/Mint)

Budget 2019: Voters have reason to cheer

  • Standard deduction limit increased to Rs. 50,000 from Rs. 40,000
  • Allocation for rural employment guarantee programme hiked to Rs. 60000 crore

Budget 2019 - Videos
 (iStock)
(iStock)

Will tax benefits announced in interim budget impact households significantly?

  • From tax sops to a mega pension scheme, the Budget has a lot for the middle-income group
  • The sops given to real estate will benefit households

Standard deduction increased from  ₹40,000 to  ₹50000.
Standard deduction increased from 40,000 to 50000.

5 income tax changes announced in Budget 2019

  • The rebate under Section 87A of the Income tax Act, 1961, has been raised to Rs. 12,500
  • FM proposed exemption from notional rent in respect of two self-occupied house properties

Money
Money

You will get to save more tax in FY2019-20

  • Even for other taxpayers with taxable income above Rs. 5 lakh, the tax outgo will reduce marginally in FY2019-20
  • Here’s how much you stand to gain as compared to what you paid in taxes in FY2018-19

Economist and former member of the erstwhile Planning Commission Abhijit Sen (Photo: Priyanka Parashar/Mint)
Economist and former member of the erstwhile Planning Commission Abhijit Sen (Photo: Priyanka Parashar/Mint)

This entire idea of direct cash transfer to farmers is stupid: Abhijit Sen

  • If you want to give a cash benefit, do it without distinguishing between farmers and non-farmers
  • A toothless NITI Aayog is trying to flex its muscles on India’s statistical system. And in doing so, it is destroying its credibility 

Finance Minister Piyush Goyal presented his first budget
Finance Minister Piyush Goyal presented his first budget

Opinion: Socio-economic issues focus area of Budget 2019

The absence of any incentive for healthcare sector has been a major disappointment

Budget 2019: You may never get to see the taxman; ITR refunds in 24 hours

  • If your income tax returns is not going under scrutiny by the I-T department, you will get refund in just 24 hours
  • The government has promised in interim budget 2019 that there will be no personal interface between taxpayers and tax officers

 (iStock)
(iStock)

Opinion | Budget for low income, middle class taxpayers

  • Reasonably good budget particularly for those with lower levels of income
  • The increase in the limit for TDS on bank interest will reduce the woes of senior citizens, persons with incomes below the taxable limit

Finance Minister Piyush Goyal presenting the Union Budget 2019 in Lok Sabha. (ANI)
Finance Minister Piyush Goyal presenting the Union Budget 2019 in Lok Sabha. (ANI)

The winners and losers from India’s interim budget

  • Income tax payers earning up to Rs. 5,00,000 will get a full tax rebate
  • Modi’s govt will breach its fiscal deficit target for a second year

 (iStock)
(iStock)

Budget 2019: Income tax processing to get quicker and scrutiny stricter

  • The project looks to make the process more assessee- friendly 
  • All tax returns filed will be processed in 24 hours and the refund initiated simultaneously

People whose taxable income, after all the deductions, is higher than  ₹5 lakh, the old tax rates will apply. 
People whose taxable income, after all the deductions, is higher than 5 lakh, the old tax rates will apply. 

Budget 2019: It's a rebate and not an exemption

  • A tax exemption is when the income you earn does not attract tax
  • The finance minister has announced a rebate and not an exemption

 (Bloomberg)
(Bloomberg)

Bond yields rise follow tax gifts, cash transfers announced in interim budget

  • An announcement of record borrowing plan at Rs. 7.04 trillion for fiscal year 2020
  • Analysts cautioned against rising risk to the fiscal consolidation efforts from higher expenditure outlay in the budget

This increase of  ₹10,000 will result in tax savings of  ₹3,120 for individuals in the highest tax bracket of 31.2%. (Mint)
This increase of 10,000 will result in tax savings of 3,120 for individuals in the highest tax bracket of 31.2%. (Mint)

Standard deduction to bring relief of 3,120 in the highest tax slab

  • A standard-deduction reduces your taxable income thereby reducing your tax liability
  • The standard deduction has been enhanced from 40,000 to 50,000

Allocation towards defence has been reduced to 8 paise from 9 paise last year (Aniruddha Chowdhury/Mint)
Allocation towards defence has been reduced to 8 paise from 9 paise last year (Aniruddha Chowdhury/Mint)

For every rupee in govt kitty, 70 paise comes from taxes

  • The government intends to earn 8 paise from non-tax revenue like disinvestment.
  • Income tax mobilisation for the next fiscal has been increased to 17 paise.

Currently, income up to  ₹2.5 lakh is exempt from personal income tax. Photo: Pradeep Gaur/Mint
Currently, income up to 2.5 lakh is exempt from personal income tax. Photo: Pradeep Gaur/Mint

Tax rebate enhanced. Taxable income upto 5 lakh are exempt from tax

  • Govt increases income tax exemption limit to Rs. 5 lakh per year.
  • No TDS on post office savings up to Rs. 40,000

Union Minister Arun Jaitley.
Union Minister Arun Jaitley.

Raising I-T exemption limit will benefit ‘great Indian middle class’: Jaitley

  • Raising income tax exemption limit will strengthen the purchasing power of the middle class, says Jaitley
  • Jaitley says the budget marks a high point in the policy directions that the Modi government has given to the nation

File Photo: Piyush Goyal, India's interim finance minister, speaks during a news conference in New Delhi. (Bloomberg)
File Photo: Piyush Goyal, India's interim finance minister, speaks during a news conference in New Delhi. (Bloomberg)

Income tax law needs to be a lot simpler: Piyush Goyal

  • Finance minister says making the tax regime more people-friendly is a priority for the NDA 
  • The Narendra Modi govt, which has undertaken several measures to curb tax evasion, is working on changes to the income tax law

For salaried persons, standard deduction has been raised from the current  ₹40,000 to  ₹50,000 for FY 2019-20 in the interim budget.
For salaried persons, standard deduction has been raised from the current 40,000 to 50,000 for FY 2019-20 in the interim budget.

Income tax rates for 2019-20 after interim budget  

  • In the next FY 2019-20, a tax rebate has been given to only those who fall in the Rs. 5 lakh income slab
  • Together with the increase in the standard deduction, the total tax saving comes up to Rs. 13,520 for someone in the Rs. 5 lakh bracket