Interim Budget 2019 Expectations

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  • By Taxmann
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  • Last Updated on 28 June, 2022

NDA Government will be Announcing the Interim Budget for 2019 on 1st of February:

A ruling government is announce the annual financial statement as per Article 112 of constitution of India, also known as Annual Budget of Republic of India, so as to get it materialized before commencement of new financial year in April.  This budget session is the last budget to be presented by the NDA Govt. Usually the ruling party presents the Interim budget or vote on account instead of a full budget in the year of election. According to the latest clarification made by the Finance ministry, budget to be presented on February 1, 2019 shall be an interim budget only. However, the doubt is still uncleared whether the Govt. will announce any changes related to Income-tax Act or not. The interim budget is to be presented by the Union Minister Mr. Piyush Goyal in the absence of Finance Minister Mr. Arun Jaitley.  As per the media report, the major focus of the interim budget would be to align the welfare of small households with government schemes. Considering the various schemes introduced by the government in last two years, we have listed down our expectations from the interim budget:

Income Tax benefits and other incentives for the middle-class:

The interim budget may double the income-tax exemption limits from 2.5 lakhs to 5 lakhs to reduce the tax burden of the small households. There could also be an increase in deduction under Section 80C from 1.5 lakhs to 2 lakhs to incentivize savings. It is also expected in reduction in highest personal income tax rate from 30% down to 25%.

Real Estate Reforms:

Real Estate is expecting the NDA government to rationalize the GST slab for the properties which are under construction and bring stamp duties under the purview of GST

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Relief for Start-up:

NDA Government have passed various procedures to promote startups in India which sort of put the startups under limelight in India and endeavored to bring in innovation and created various job opportunities and opportunities for wealth creation. Startups in India are expecting NDA government to give more clarity on Angel Tax, to have policy reforms to promote digital transaction, imbibe the ‘ease of shutting down’ for startups, to introduce tax holiday for government registered startups, boost establishment of incubators and accelerators, soften the GST rates for fund managers and more clarity of tax on ESOPs.

Also Read: Budget 2019 Highlights

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