The budget is out and Piyush Goyal has definitely tried to woo the Indian middle class with his budget line, particularly the income tax slab. We all know that below 5 lacs the middle income group had to pay an income tax slab of 5 % tax. This years the grass is even greener because now uptil 5 lacs, you are not required to pay any tax. Furthermore, if your income is 6.5 lacs you might as well do a fixed deposit of 1. 5 lacs which will not be applicable for tax.
Again, the government presented the interim budget this year. This budget is usually presented in the final year of the government’s tenure. Yes, this does have a catch. Once the new government comes into force, the approval of this budget is required from the new government. It’s for the new government to decide to make a few changes in the budget of change it entirely.
Nonetheless, the burden for the tax payers has definitely eased with the tax slab being increased. There is news for the farmers too and includes a yearly money transfer of 6000 for small farmers under the Kisaan scheme. It will be done in three installments of 2000 each. For government employees the tax free gratuity limit has been increased from 10 lakhs to 20 lakhs. For mothers, the government has introduced the Pradhan Mantri Matritva Yojna and 26 weeks of Maternity leave for working women. The tax on daily used items now remains within 0-5 % tax slab. The government has also announce no tax on interest of 40,000 on FDs.
The government has also announced pension scheme for house maids wherein they need to start putting 100 Rs. per month from the age of 29 and they get a monthly pension of 3000 after 60 years of age under the Pradhan Mantri Shram Yogi Mandhan and people working in the unorganized sectors. The rest of the money will be contributed by the government. The scheme is all set to begin this year.
Well, there is quite some good news it seems with the budget this year, particularly for the middle income groups. But, it needs to be seen if after the election this budget gets approval of the elected government because then only it will hold true.