Stand-in Finance Minister Piyush Goyal followed the convention by not presenting changes in the main tax proposals but within that he did try to tinker with some provisions to provide relief to income tax payers.

As farm sector was in dire need of assistance, he announced launching a new scheme KISAN top assist kisans. To take care of social security for the unorganised sector workers, he made a provision of contributory new pension schemes for the workers with matching contribution by the Government.

Size of budget has gone up by 14 per cent. Share of health in total budget size stays at over 2.5 per cent while on education it has come down to 3.37 per cent from 3.48 per cent in 2019-20

Benefits for different sections

For Farmers

1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

- Vulnerable landholding farmer families, having cultivable land up to 2 hectares, will be provided direct income support at the rate of Rs 6000 per year.

- This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs 2000 each

- The programme will be funded by Government of India

- Around 12 crore small and marginal farmer families to be benefited

- The programme would be made effective from December 1, 2018 and the first instalment for the period up to March 31, 2019 would be paid during this year itself

- Anneal expenditure would be Rs 75,000 crore. Allocation of Rs 20,000 crore for 2018-19 and Rs 75,000 crore for 2019-20

2. Benefit of 2 per cent interest subvention to the farmers pursuing the activities of animal husbandry and fisheries who avail loan through Kisan Credit Card. Further in case of timely repayment of loan, they will also get an additional 3 per cent interest subvention

3. All farmers affected by severe natural calamities, where assistance is provided from National DisasterRelief Fund (NDRF), will be provided the benefit of interest subvention of 2 per cent and prompt repayment incentive of 3 per cent for the entire period of reshedulement of their loans

4. Rashtriye Kamdehenu Aayog to be set up to upscale sustainable genetic up-gradation of cow resources and to enhance production and productivity of cows

For taxpayers

 

- Taxpayers having annual taxable income up to Rs 5 lakh will get full tax rebate means no tax to be paid

- Every person having gross income up to Rs 6.50 lakhs may not be required to pay income tax if they make investments in provident funds, specified savings, insurance etc.

- Benefit will go up after investment in NPS, medical insurance, interest re payment on housing loans

- Benefit to 3 crore middle class, total tax benefit of Rs 18,500 crore

- Standard deduction raised to Rs 50000 from Rs 40000. Additional tax benefit of Rs 4,700 crore to more than 3 crore salaried and pensioners

- No income tax on notional rent on a second self occupied house

- TDS threshold on interest raised to Rs 40,000 crore from Rs 10,000 crore

- TDS threshold for deduction of tax on rent to be raised Rs 2.40 lakh crore from Rs 1.80 lakh crore

- No change in income tax slab and rates

For workers

 

 

1. Pradhan Mantri Shram-Yogi Maandhan Yojana

- It will be for unorganised sector workers with monthly income up to Rs 15000

- It will provide an assured monthly pension of Rs 3000 from the age of 60 years on a monthly contribution.  Click here to read pension story

- Contribution of Rs 55 per month for those who are joining at the age of 18 years

- Contribution of Rs 100 per month for those who are joining at the age of 29 years till the age of 60 years

- Matching amount by the Government

- 10 crore workers are expected to take benefit of the new scheme within next five year making it one of the largest pension scheme of the world

- Rs 500 crore provided for the scheme which can be raised if needed

Defence

- Allocation will be over Rs 3 lakh crore for the first time

Railway

- Operating ratio is expected to improve from 98.4 per cent in 2017-18 to 96.2 per cent6 in 2018-19 and further to 95 per cent in 2019-20

- Overall capital expenditure are over Rs 1.58 lakh crore

- All unmanned railway crossings on broad gauge network removed

Stamp Duty

- To be levied on one instruments relating to one transaction and get collected at one place through the stock exchanges.

- Duty collected will be shared with the State Governments seamlessly on the basis of domicile of buying clients

Fiscal Deficit

- Estimate revised to 3.4 per cent for 2018-19 and 2019-20 as against 3.3 per cent in 2018-19 and 3.1 per cent in 2019-20

- Gross tax revenue collection estimate lowered in the revised estimate to Rs 22.48 lakh crore from Rs 22.71 lakh crore

- Higher deficit to income support programe

- Committed to maintain 3 per cent during 2020-21

Goyal presented 10 points vison for next decade. It includes

a. Building physical as well as social infrastructure for a 10 trillion dollar economy

b. Digital India reaching every sector of the economy, every corner of the country and impacting the life of all Indians

c. Making India a pollution free nation

d. Expanding rural industrialization

e. Clean rivers

f. Using coastline and ocean waters to power India’s development and growth

g. India becoming launching pad of satellites for the world

h. Making India self sufficient in food

i. Healthy India

j. Proactive and responsible bureaucracy

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