Budget 2019: 7 things every salaried person should know
Minister of Railways, Mr. Piyush Goyal, acting as the finance minister in absence of Mr. Arun Jaitely, who is currently undergoing treatment, announced the much-awaited budget — ‘Union Budget 2019’.
Indeed, it is one of the most comprehensive budgets presented to date. Most importantly, it brings a wave of joy to the middle class in the form of tax relief. Here are seven things everyone should know.
Below are some prominent highlights of the Budget 2019:
- Full tax rebate for people whose annual income is up to 5 lakhs after all obligatory deductions. Biggest relief announced by the tentative finance minister for the working base of the nation, mostly middle class. Zero tax deductions who come under the bracket of income not more than 5 LPA. Only obligatory deductions like ESI, PF, etc. may apply.
- Standard deduction increased from Rs. 40,000 to Rs. 50,000.
- Limit for TDS deduction increased from Rs. 10,000 to Rs. 40,000 u/s 194A.
- Limit for TDS deduction increased from Rs. 180,000 to Rs. 240,000 u/s 194I.
- ESI eligibility cover limit has been raised to Rs. 21,000 per month from Rs. 15,000 per month. With the increase in limit, for ESI scheme, workers drawing salary up to Rs 21,000 will now be eligible for health care at health centers run by ESIC.
- Gratuity payment limit increased from Rs. 10 lakh to Rs. 20 lakh. Typically, eligibility for gratuity is 5 years. Now, here’s the good news for workers who have completed 5 or more years of service with the same company. The maximum limit for gratuity earnings to employees has been set at to Rs. 20 lakhs.
- Tax assessment to be done electronically after a couple of years. Great move by the government. This will not only make tax payments and tax filings easier but would also increase the number of taxpayers. eTax will definitely benefit the nation in coming years.
These were some of the prominent highlights of the Budget 2019. Final words of PM Narendra Modi post-budget declaration were,” This is just a trailer, which after elections, will pave India towards development”.
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Source: Zeebiz, Hindustan Times and Times of India