India’s Prime Minister Narendra Modi has won the Lok sabha elections for the second consecutive time.
Prime Minister Narendra Modi has returned to the power once again, after Lok sabha elections 2019.
As Modi government is back, it may impact your personal finances there may be many changes in 2019 budget.
Here are some of the actions by the Modi government you might see in 2019 budget!
More income tax relief for middle class!
After the Interim Budget in February 2019 the finance Minister Piyush Goyal had given a hint that, if the Modi government returns to power and wins Lok sabha elections 2019 then the new government may consider more relief to taxpayers in the main budget.
The statement made by the finance minister Piyush Goyal, “As the PM said, that is only a trailer, the final budget will be coming in July. In the interim budget, we have not been able to make full proposals that we would have liked to in income-tax. Despite that – in particular middle class and newer middle-class sections, we didn’t want them to go through the inconvenience of going to the tax department for returns, refunds and stuff like that – we thought this (rebate) part cannot wait.”
Complete overhaul of the income tax law
The new government may replace the existing income tax act, as in 2017, the Modi government formed a task force to draft a new direct tax. The task was scheduled to submit its reports on February 28, 2019. However it extended by three months.
Pension scheme for senior citizens could extend
Earlier in 2018, the Modi government increased the maximum investment allowed under Pradhan Mantri Vaya Vandana Yojana (PMVVY) to Rs 15 lakh per senior citizen. The scheme has also been extended up to March 31, 2020 and it may extend further.
Protective measures for electronic payments
Earlier several measures have been taken by Modi government to protect electronic payments and to promote cashless transactions. Soon measures to improve user confidence in electronic payment channels will be taken by the government.
There might be many more beneficial impacts on 2019 budget and your personal finances after the return of Modi government to the power.