The Interim Budget presented by Piyush Goyal did not disappoint, as it was the first time when someone talks about the middle class. Addressing the middle class, the Budget 2019 is a gift of benefits.
Yes, we know it’s all for the game of votes but at least, it’s beneficial. In politics, everything is about votes from Gau rakshaks, Ram Mandir to every scheme of Government but still, as a middle class, this is the first time when the benefit will be given to us.
Taking the place of Arun Jaitley, the finance minister, Piyush Goyal announced the budget which focused on the farmers and the middle class. Let’s begin with the first benefit, No tax on income up to ₹ 5 Lakh a year. The current limit for no tax is ₹ 2.5 Lakh and people who earn above this had to pay 10% tax. But the new budget says that you won’t have to pay any tax with income of 5 lakh a year. Individuals with income up to ₹ 6.5 lakh will not need to pay tax if they make investments under prescribed schemes.
Now come to the second benefit, No rental income will be added, if the same family own up to two houses. There will be no rent on a second property occupied by the family. This will give a benefit to people who live in their other house. The cap for tax on rent has been upped from ₹ 1,80,000 to ₹ 2,40,000. It means No Tax Deducted at Source (TDS) on house rent up to ₹240,000, raised from ₹180,000 earlier.
This benefit is like a cherry on the cake as Standard deduction from the income upped from ₹ 40,000 to ₹5 0,000. The standard deduction is an amount of deduction, that can be reduced by taxpayers, from their gross salary.
Except this, the interim budget 2019 is a big relief to pensioners as well as senior citizens. It also raised the threshold for TDS on interest received at post offices and bank deposits from ₹10,000 to ₹40,000. The finance minister said that around 3 crore middle-class people will get tax exemption by budget presented by Piyush Goyal. It also mentioned the increase in Gratuity limit from ₹ 10 lakh to ₹ 30 lakh rupees.
So many benefits in the same budget? Well, this is not enough as the government also think about the poor section of the economy as well as farmers. While the reservations for poor are already in place and the government gives an additional 10% of reservation to the poor in the sector of government jobs and education.