Mail News Service
Jamshedpur, Feb 1: As the economics saying goes: “Budget is actually a vision for macro-economic policy promoting overall economic growth”. Finance minister Piyush Goyal presented the sixth and hence, the interim budget 2019-2020 on Friday. The interim budget is widely expected to focus on giving big push to investment in agriculture, small and medium industries, and health sectors. This was observed by city-based Chartered Accountant Rohit Kumar Choudhary.
“During last 5 years tenure, government has taken many hard decisions to curb black money and push GDP. After demonetization more than 1 crore assesees have filed income tax return for the first time. In this interim budget finance minister has tried to woo middle class with tax breaks, farmers with sops. The tax breaks for the salaried, middle class, pensioners is being welcomed and is far more than expectations,” he said.
Choudhary went on to add, “With the additional tax rebate, an individual with total income up to Rs. 5 lakhs will have no tax to be paid. Individuals with gross income of up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities. It is very important that there is no increase in threshold limit of Rs 2,50,000. It is rebate under Section 87A increased from RS 2,500 to Rs 12,500. And eligibility of total income not to exceed Rs 3,50,000 increased to Rs5,00,000. Thus the benefit will be to only those taxpayers whose total income doesn’t exceed Rs5,00,000. The moment it exceeds RS 5,00,000 tax will start from Rs 2,50,0000 at 5% up to Rs5,00,000 and 20% from 5,00,000 to Rs10,00,000. Also, Standard tax deduction for salaried persons raised from Rs 40,000 to Rs 50,000 which is again welcomed by salaried class.”
According to Choudhary, increase in TDS threshold limit on Interest & rental income has brought cheer on the face of pensioners and retired people whose only source is income from Interest & house property, now they don’t have to file ITR and claim refund. In my opinion increase of TDS threshold on interest on bank and post office deposits from Rs 10,000 to Rs 40,000 and TDS threshold on rental income from Rs 1.8 lakh to Rs 2.4 lakh was due for long and much awaited.
“Exemption from Capital Gain on sale of residential house under Section 54 has been extended to purchase of 2 residential house subject to maximum capital gain of Rs. 2 Crores. This option can be claimed once in a lifetime.
Making scrutiny of income tax returns jurisdiction free will give huge relief to
honest taxpayers, though its implementation will take next two years as said by the finance minister in his budget speech. Once implemented , taxpayers whose ITR has been selected for scrutiny will need not be required to visit income tax office and make physical submission of books. Neither the taxpayer nor the Assessing officer will know whereabouts of each other,” he said.
“The Interim Budget presented by Piyush Goyal marks a high point in the policy directions that the government has given to this nation. Interim Budgets are also an opportunity for the government of the day to introspect their performance of the last five years and place its facts before the people. Between 2014-19, every Budget has given significant relief to the middle class. Overall the Budget lived up to government’s motto of “sabka sath sabka vikas” and ‘minimum Government maximum Governance’. As we know 2019 is the year of Lok Sabha Election, this budget could be a game changer among middle class,” Choudhary said.