The Finance Minister Piyush Goyal declared the most awaited budget in the Lok Sabha today on 1^st February, 2019 which is virtually considered as “ Full-Fledged Modi Government Budget” Piyush Goyal was given a charge of the finance portfolio to be declared in place of Arun Jaitley who is in US or medical treatment which is widely expected to replace the traditional budget by showering sops in various fields \taking into account all prospects.

The income tax sops could include a rise in the threshold exemption limit for middle class tax payers. The exemption threshold could go up from the present Rs. 2.5 lakh to Rs. 5 lakh P.A.

The corporates have also been reducing the peak rate from 30 to 25 per cent. The center of attraction for Union Budget 2019-2020 shall be the agricultural sector specially in heart states of Madhya Pradesh, Rajasthan, and Chhattisgarh.

Reworking on Bhavantar Scheme implemented by the BJP government in the State of Madhya Pradesh under which farmers are compensated for the gap between Minimum Support Price and the market price.

Due to fiscal deficit, There are major changes in the in the tax collections specially in GST i.e The Goods and Services Tax in this Union Budget 2019-2020 to meet the shortfall of the deficit by higher direct tax collection.

SPECIFIC SECTOR UNION BUDGET 2019-2020 HIGHLIGHTS

TAX:

1.  No income tax for income up to Rs 6.5 lakh (Rs 5 lakh + Rs 1.5 lakh under 80C of the Income Tax Act)
2.  Full tax rebate for income up to Rs 5 lakh per annum
3.  No tax on notional rent on second selfoccupied house
4.  Capital Gains exemption under Section 54 to be available on two house properties
5.  Tax benefit of Rs 18,500 crore given to three crore middleclass tax payers
6.  Standard deduction raised to Rs 50,000 from Rs 40,000
7.  TDS limit hiked from Rs 10,000 to Rs 40,000 on postoffice savings
8.  Group of Ministers looking at ways to ease GST burden on homebuyers.
9. Exempt on tax on second self-occupied house
10. Benefit u/s 80IB exemption to builder for affordable housing scemes has increased to one more year i.e. 2020
11. Within 2 years, Tax assessment will be done electronically
12. IT returns processing in just 24 hours

GST HIGHLIGHTS OF UNION BUDGET 2019-2020

1. GST: collections in January 2019 has crossed Rs 1 lakh crore.
2. GST has been continuously reduced, resulting in relief of 80,000 crore rupees to consumers; most items of daily use for poor and middle class are now in the 0%-5% tax bracket.
3. Group of Ministers to suggest ways to reduce GST for house buyers.
4. Businesses with less than Rs 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns .
5. Recommendations to GST council for reducing GST rates for home buyers