The upcoming Union Budget to be announced on the 5th of July 2019 would be the seventh Union budget of the NDA government, including the interim budget announced on 1st February 2019 by the then finance minister, Mr. Piyush Goyal. It will be the first budget of the NDA government after returning to power. With great expectations being made from Nirmala Sithraman’s maiden budget, let’s have a look at NDA’s tax reforms in the past five years:
The Interim Budget was presented on the 1st of February 2019 by the then Finance Minister Mr. Piyush Goyal, the budget attributed much attention to the middle class taxpayers.The budget declared a tax exemption for an earning up to Rs. 5 lakhs. This benefit was given in the form of rebate under section 87A, which was revised to Rs. 5 lakhs. The standard deduction from salary was also increased from Rs. 40,000 to Rs. 50,000 and Tax Deduction Source (TDS) was increased from Rs. 10,000 to Rs. 40,000 on post office deposits and other deposits. The government also proposed 2% interest rate subvention for Micro, Small and Medium Enterprises (MSMEs).
The Union Budget for financial year 2018-19 was announced on February 2, 2018, by Finance Minister Arun Jaitley. The Union Budget 2018 reintroduced a standard deduction of Rs 40,000 from salary, which was withdrawn in the Union Budget of 2005-06 and replaced the exemption of transport allowance and reimbursement of miscellaneous medical expenses. A reduced tax rate of 25 percent was extended to companies with a turnover of up to Rs 250 crore during FY 2016-17. Long Term Capital Gains (LTCG) was reintroduced at 10 percent on gains arising from the transfer of listed equity shares exceeding Rs 1 lakh at 10 percent without indexation benefit. Cess on personal income tax and corporation tax was proposed to be increased from 3 per cent to 4 per cent. The new cess was called ‘Health and Education Cess’. Also the limit of deduction under section 80 D for senior citizens was increased from Rs 30,000 to Rs 50,000.
Union Budget 2017:
The Union budget 2017 was announced in advance on February 1 from earlier practice of announcing the budget on last working day of February. In this budget the existing rate of tax for individuals between Rs. 2.5 to Rs 5 lakh was reduced to 5% from 10%. All other categories of taxpayers in subsequent brackets were given a benefit of Rs 12,500. Further, a simplified one-page Income Tax Return (ITR) form for the category of individuals having taxable income up to Rs 5 lakhs other than business income was announced and people filing IT returns for the first time were not covered under any government scrutiny. Surcharge on taxpayers with income exceeding Rs 1 crore was further increased from 12 per cent to 15 percent. The government also introduced a maximum penalty of Rs. 10,000 for delayed filing of ITR by individuals. Surcharge of 10% of tax payable on categories of individuals with annual taxable income between Rs 50 lakhs and Rs 1 crore was also introduced.
Union Budget 2016:
The third Budget of the NDA government was announced on February 28, 2015 by the then Finance Minister Arun Jaitley.The government raised the ceiling of tax rebate under section 87A from Rs 2,000 to Rs 5,000.The limit of deduction of rent paid under section 80GG was also increased from Rs 24,000 per annum to Rs 60,000, National Pension Scheme (NPS), withdrawal of up to 40% of the amount at the time of retirement was made tax exempt. First time home buyers availing home loans of up to Rs 35 lakh in 2016-17, were allowed additional tax benefit of up to Rs 50,000 under Section 80EE of the Income Tax Act, 1961, where house cost does not exceed Rs 50 lakh. This deduction was over and above the existing deduction of Rs 2 lakh under Section 24. Surcharge on taxpayers with income exceeding Rs 1 crore was further increased from 12 percent to 15 percent.
The Budget for 2015 was announced on February 28 by the then Finance Minister Arun Jaitley. In this budget the Government increased the limit of deduction of health insurance premium from Rs 15,000 to Rs 25,000, for senior citizens limit increased from Rs 20,000 to Rs 30,000. Senior citizens above the age of 80 years, who were not covered by health insurance, were allowed deduction of Rs 30,000 towards medical expenditures. Deduction limit of Rs 60,000 with respect to specified disease of serious nature increased to Rs 80,000 in case of senior citizen. Additional deduction of Rs 25,000 allowed for differently abled persons. Additional deduction of Rs 50,000 in NPS under section 80CCD was announced.The transport allowance exemption increased to Rs 1,600 per month from Rs 800 per month. Also, Sukanya Samriddhi Yojana was made tax exempt. Surcharge on taxable income exceeding Rs 1 crore was also increased from 10 per cent to 12 per cent.
Union Budget 2014:
The Union Budget 2014 was the first budget of Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government. It was announced on July 10, 2014 by Finance Minister Arun Jaitley. The finance minister increased the personal Income-tax exemption limit by Rs 50,000, i.e. from Rs 2 lakh to Rs 2.5 lakh in the case of individual taxpayers, below the age of 60 years. While for senior citizens the limit was raised from Rs 2.5 lakh to Rs 3 lakh.Investment limit under Section 80C of the Income-tax Act was raised from Rs 1 lakh to Rs 1.5 lakh.Deduction limit on account of interest on loan in respect of self-occupied house property raised from Rs 1.5 lakh to Rs 2 lakh. Kisan Vikas Patra was reintroduced and National Savings Certificate with insurance cover was also introduced.
Tags Union Budget