13 things you need to know about the Budget and how it would impact your Income

NEW DELHI, INDIA: Budget 2019 is Modi government 2.0’s first budget and one of the most aspirational ones as it aims at making India a 5 trillion dollar economy by 2024.

But for the common man what most matters in a budget is the the taxes he has to pay and how much exemption he can claim in his income tax return.

Since budget is comprehensive it can be difficult for common man to find his major points of concern and how budget addresses them, we bring to you point-wise changes in the tax structure presented in this budget and how it will impact your life.

1. 3% Increase in surcharge for individuals with incomes between 2 to 5 cr. 7% increase in surcharge for incomes above 5 cr.

2. Proposal to make PAN and Aadhaar interchangeable. ITR can be filed without PAN by quoting Aadhaar.

3. Propose to increase special additional duty and road and infrastructure cess on diesel and petrol by Re1.

4. Additional income tax deduction of Rs 1.5 lakh on the interest paid on loans for EVs.

5. Additional deduction of up to Rs 1.5 lakh for interest on loans borrowed upto March 31, 2020 for purchase of affordable house upto Rs 45 lakh.

6. Business establishments with annual turnover of Rs 50 crore will offer low-cost digital mode of payments to customers and no charges or merchant discount rates shall be imposed on customers as well as merchants.

7. For every verified woman Self Help Group member having a Jan Dhan account, an overdraft of 5000 rupees will be allowed.

8. One woman in every SHG shall be made eligible for a loan of Rs 1 lakh under MUDRA scheme.

9. Pension benefits will be offered to 3 crore shopowners with annual turnover of less than Rs 1.5 crore under new scheme called Pradhan Mantri Man Dhan Scheme.

10. Rs 20 coin to be released soon.

11. Rs 70,000 cr recapitalisation of public sector banks for cheap credit.

12. TDS of 2% to be charged on cash withdrawals of Rs 1cr in a year to discourage business payments in cash.

13. Rs 1cr of loan for MSME in 59 minutes.

However, surcharges would be levied as follows, once the budget proposals are passed by the Parliament for FY 2019-20:

For Non-resident individuals (NRI), the basic exemption limit is of Rs 2.5 lakh in a financial year irrespective of their age.

A resident individual can also avail rebate under Section 87(A) whose net income is equal to or less than Rs 3.5 lakh. The amount of rebate under this section is 100% of the income tax or Rs 2,500 whichever is less. It is deductible before calculating the cess.

This budget clearly has taxed the super rich while providing relief for the middle class and low income group, a push towards greener and digital India is evident and cheap credit is giving wings to entrepreneurial dreams.

What is your opinion about the budget? How do you think it would impact your income ?

Do Comment.