The Narendra Modi government in its budget proposal on Friday, February 1, has offered to provide full tax rebate to the neo-middle class, direct-cash support to the small farmers, pension for the unorganized working class, and many more as an effort to convince all sections, while the nation is making up its mind for the elections due in less than two months now.
Piyush Goel, the Finance Minister-in-charge, presented the interim budget in the Lok Sabha in the absence of the Finance Minister Arun Jaitley who, at present, is recuperating in the USA.
An individual with an annual taxable income of Rs 5lakh will not have to pay any tax from the next financial year, stated Mr. Goel in his budget speech.
In this new IT system, the tax relief there will be of more than Rs 23000 crore for 3 crore people of the tax-paying middle class. Individuals with yearly earnings of up to Rs 6.5 lakh can also enjoy tax relief by investing in Provident Fund and in prescribed equities.
The Standard Deduction has been increased to Rs 50,000 from Rs 40,000 while the TDS threshold has been increased from Rs10, 000 to Rs 40, 000 on the interest earned through bank or Post – office deposits.
The proposed IT regime exempts an individual to pay tax on the notional rent of the second self-occupied house.
To the small farmers, the government is to provide Rs 6,000 a year, in three installments as an assured annual income from the next financial year. About 12.5 crore farmers are likely to be covered under the scheme named PM-KISAN with a budget outlay of Rs 75,000 crore.
Mr. Goel has announced Rs 750 crore for the Rashtriya Gokul Mission. For sustainable genetic up- gradation of the Cow resources the Finance Minister announced to set up the Rashtriya Kamdhenu Ayog.
He has also announced 2% interest subvention on loan for activities on animal husbandry and fisheries, and an extra 3% subvention on timely repayment.
The government has proposed to provide pension cover to about 10crore workers in the unorganized sector through Pradhan Mantri Shram Yogi Maandhan scheme. The scheme will make provision of a pension of Rs 3000 per month for a worker in return of his monthly contribution of Rs 100/55 after he attains 60 years of age.