Finance Minister Piyush Goyal presented the last Budget of the Narendra Modi government ahead of upcoming Lok Sabha polls, which was full of election goodies for farmers, middle-class, homebuyers, and labourers. Here are major highlights in a nutshell.
Individuals: In a surprise announcement, Goyal gave the much-awaited tax relief to the middle-class by exempting income up to Rs.5 lakh per annum. He also increased the standard deduction limit increased by Rs.10,000 to 50,000.
Farmers: After the poll debacle in three heartland states, the government tried to woo voters by announcing Rs.6,000 per year income support to marginal and small farmers with less than 2 hectares of land. under PM-KISAN. Moreover, agriculture and fisheries sector also got 2% subvention under Kisan Credit Card and further 3% on timely repayment.
Homebuyers: The government also announced rollover of capital gains allowed for two houses as one-time benefit up to a gain of Rs.2 crore.
SMEs and Traders: Goyal also announced that an increase in sourcing requirements from SMEs by government enterprises by 25%, of which 3% to be sourced from women-owned SMEs.
Women: Asha and Anganwadi workers’ honorarium has been increased by about 50% for all categories. The government also announced that it will extend the coverage under Ujjwala to 8 crore from present 6 crore.
Builders: The government extended the exemption on levy of the tax for unsold inventories from one-year to two years. Moreover, Section 80IBA benefits were also extended for one more year for affordable housing projects approved by March 31, 2020.
Unorganised workers: The government announced to provide Rs.3,000 monthly pension after the age of 60 under PM Shram Yogi Maandhan.
Rural workers: The government made higher allocation for MGNREGA of Rs.60,000 crore. For Prime Minister Gram Sadak Yojana, the government allocated Rs.19,000 crore, a 20% increase on-year.
Small savers: Goyal also announced TDS exemption on interest income from Rs.10,000 to 40,000. For self-occupied house, income tax exemption on notional rent on the second house has been given.