As the Indian Government announced the Budget for the FY, many changes have been proposed that can alter the budgets of a common man’s household. However, most law-abiding, income-earning, and tax-paying citizens are more interested in the new changes made to the income tax provisions. Let’s begin with a quick recap of the income tax-related announcements in the Interim Budget 2019.
As the Union Budget was announced on February 1, 2018, by the Union Minister for Finance, Mr. Arun Jaitley, a lot of curiosity was created about what it meant for the country’s inhabitants. The 2018 budget was a mixed bag of sops with a lot of goodies for the economically weaker sections and the uber-rich, but very little for the middle class.
The Prime Minister, Mr. Narendra Modi, called the budget a “Farmer friendly, common citizen friendly, business- environment friendly, development friendly budget.” But not all of the budget is bright and shiny. Several provisions are definitely not pro-salaried class. The bigger corporate houses are also expected to be disappointed.
The most significant change implemented in the financial year 2018-19 is the revival of the long-term capital gains (LTCG) tax on the investments in the stock market. Now, a 10% tax will be imposed on the profits from stock markets which exceed one lakh in the form of Long-Term Capital Gains (LTCG) tax. These profits could be earned by the sale of stocks and equity-oriented mutual funds, which have been held by an investor for more than a year.
Presented by the Union Minister for Finance, Mr. Piyush Goyal, on February 1, 2019, the interim Union Budget for 2019 is a much-needed tax relief for the salaried middle class. Income tax concessions for salaried class and lowered peak tax rates for corporates seem to be the mantra for 2019. The alternative focus remained on the farmers and senior citizens.
The Union Home Minister, Mr. Arun Jaitley, has called the Union Budget “historic and for the development of the common man.” The budget has undoubtedly focused on the common man this time, but it remains to be seen whether the Budget measures are implemented successfully.