The current budget published by the government came out as a sigh of relief for the middle class and poor people. The Finance Minister, Piyush Goyal talked of the recession in the tax for helping the people belonging to the middle class and lower class who live lives in a tight budget. On Tuesday, the Finance Minister announced that the people earning Rs 9.5 lakhs could use the saving scheme and escape the tax liability.
Changes in the bill
Contradicting the opposition, the finance Minister rightly added that he only brought a few modifications in the tax rate instead of deduction with the aim of boosting the economy of the country. The Finance Bill passed on Tuesday in the Lok Sabha with sufficient vote has made the budgetary process complete for the lower house.
Tax Liability: Contradicting the opposition
Bringing about the reference of Congress, Finance Monster said that the current NDA government had not brought any changes in the price of the commodities enjoyed by the upper-class people.
Also, in the current bill, Finance Bill 2019, the Minister has also proposed to raise the tax rebate for the people earning Rs 5 lakh on an annual basis from Rs 2500 to Rs 12500. This further made sure that middle-class and poor people do not need to pay any taxes. The home buyers received a significant amount of tax benefits. Also, the standard deduction amount in the bill was raised from Rs 40000 to Rs 50000.
In the bill, Finance Minister Goyal says that it is aimed for helping “poor and middle-class people living on a tight budget…This is an interim budget. We have not brought any tax proposal…we will bring them in July”.
The elections are to be held soon, and after that, a new government will be formed. This new government will have to come up with the complete budget for the 2019-20 session. It is expected that the full budget will be appearing by July.
Goyal also added that if any of the opposition has any problem with the current proposals of giving a rebate to middle-class taxpayers and farmers, they must mention it in their election manifesto. He also added that they must mention of raising rebate and taking away the farmer income scheme. This is a provoking statement for the opposition, because if they do so, they may lose power.
Various questions came up regarding the concession in budget announcement. The minister took time to answer all and focused on the tax proposals. He added that this would be beneficial for the tax deduction at source. He added that this would eventually help in increasing savings and promoting economic growth. The individuals earning Rs 9-9.5 lakh can easily move out of the tax liability with the help of saving scheme as set up by the Income Tax Act.
Modi Government bringing equality
Praising the Modi government, the finance minister added that over the years, the government had made efforts to bring justice to the society and taxpayer. He also added that India had become one of the most effective leaders in terms of the economy due to the increase in tax collection. This has eventually helped in expanding the tax collection base. This has further helped to solve the problems of socially and economically backward classes.
The increase in standard deduction and TDS limit has proved to be beneficial for senior citizens. Apart from them, the housing sector has benefitted too. They will be having liability over interest subvention, increased capital gain tax and increased rebate for home loans.
The current government has also promised house to every citizen by the 75th year of Independence of India. The government has been keeping a close check on the property proves and are adding the non-performing assets for the lowest sector. This is due to the “housewives insisting that the home loans are repaid in time.”
Tax Liability: No False Hopes
As far as the fiscal deficit is concerned, the Finance Minister said that changes and adjustments are being made in that level too. He added that the adjustments in the fiscal deficit ‘someone’ target had been 3.3% for the GDP of the year 2018-19. Therefore, instead of putting false hopes in front of the public he made the prominent budget strategy.
The budget states that the fiscal deficit for the budget may rise to 3.4 percent as far as the budget is concerned and not the expected the 3.3 percent.