“This Union Budget seems to be a budget, which is bundled with avenues for all the sectors of the society. One may think it is a populist budget, keeping in mind the upcoming general election, but it has meat for all the respondent to the budget. Prime Minister Narendra Modi-led government on Friday exempted people with an earning of up to Rs 5 lakh from payment of income tax, announced an annual cash dole-out of Rs 6,000 to small farmers and provided a monthly pension of Rs 3,000 to workers in the unorganized sector and the highest ever allocation for Defense budget of Rs. 3 Lac Crores plus. The Government’s plan seems to focus on basic need like to provide physical and social infrastructure across India, to every citizen, with a concurrent emphasis on geographical areas that have historically been overlooked. The direct and indirect emphasis in providing entrepreneurship, make life easier for business, citizens, corporate and public sectors (G2B, G2C, and even G2G). Overall a good and progressive budget.” Said CA Biswajit Mishra, CDO, HostBooksLimited, India’s number one accounting software company for SMEs.
Some of the major Budget Highlights are
- Individual taxpayer resident in India to Rs.6.5lakhs will need not to pay any tax if they make investment eligible for deduction under section 80C.
- Threshold Limit of Standard Deduction from salary income has been increased to Rs.50000
- Provide relief to the resident individual taxpayers through increasing rebates/s87AtoRs.12500 and increasing again threshold limit of a total income of Rs. 500000.
- Threshold limit for TDS by a banking company, co-operative society or a post office from payment of interest income other than interest from securities has been increased to Rs.40000.
- Threshold limit for TDS on payment of rental income has been increased to Rs.240000/-
- Income tax return to be processed within 24 hours and refund will be paid immediately.
- Under“Pradhan Mantri Kisan SammanNidhi (PM-KISAN)” program, Rs.6,000per year assured income support for small and marginal farmers.
- Businesses with less than the Rs.5crores annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns.
- Under the New Pension Scheme Government contribution increased to 14% from 10%
- Maximum ceiling of the bonus given to the laborer has been increased from Rs.3,500 to Rs.7,000 and a maximum ceiling of the pay has been increased from Rs. 10,000 pm to Rs. 21,000 pm
- The ceiling of ESI’s eligibility cover has been increased from Rs. 15,000 pm to Rs. 21,000 pm
- GST registered SME units will get 2% interest rebate on an incremental loan of Rs. 1 Crore
- New manufacturing companies without any turnover limits shall be taxed at the rate of 25%.
- Exemptions from GST for small businesses has been doubled from Rs. 20 lakhs to Rs. 40 lakh
- Small service providers with turnover upto`50 lakhs can now opt for composition scheme and pay GST at 6% instead of 18%.
- Soon, businesses comprising over 90% of GST payers will be allowed to file quarterly return.
- Stamp duties would be levied on one instrument relating to one transaction and get collected at one place through the Stock Exchanges.