Now that Narendra Modi’s is lower back as the prime minister, right here’s how the BJP government’s 2nd time period can affect your private price range and what the overall finances 2019 may additionally bring. Income tax sops, an extension of a current housing scheme, pension schemes, Aadhaar-related amendments, extra steps to push virtual bills and extra stringency in tax management are among the areas wherein you might see a few motions by way of the brand new government. Read on to discover why we are announcing this.
1. More profits tax comfort for center elegance?
In an earlier interview to the Economic Times after the Interim Budget in February 2019, the then Finance Minister Piyush Goyal had hinted that if the Modi government returns to power then the brand new government may also recollect more remedy for taxpayers within the important price range after the General Elections.
The period in-between finances did not make any adjustments within the basic tax slabs and tax rates however gave full rebate of tax payable to all people with taxable earnings up to Rs 5 lakh. Here is an excerpt from the interview:
“As the PM stated, this is handiest a trailer, the very last price range will be coming in July. In the period in-between finances, we’ve now not been able to make complete proposals that we would have liked to in income-tax. Despite that – especially middle class and more moderen middle-elegance sections, we didn’t want them to undergo the inconvenience of going to the tax department for returns, refunds and stuff like that – we thought this (rebate) part can not wait.”
2. Complete overhaul of the profits tax law
In 2017, the Modi government fashioned a project pressure to draft a brand new direct tax law or code to replace the present 50-yr-vintage Income Tax Act.
The challenge pressure changed into scheduled to post its record by using February 28, 2019. However, this cut-off date was prolonged by means of 3 months to May 31. Therefore, it’s miles possibly that during its 2nd time period, the Modi government may additionally replace the present Income Tax Act.
The Modi authorities had first of all made Aadhaar mandatory for multiple services and transactions consisting of submitting earnings tax returns, applying for PAN card, cell connections or even establishing bank account. However, later, the Supreme Court in a judgement held that Aadhaar couldn’t be made obligatory for starting of bank money owed or getting mobile telephone connections.
Following this, the Modi authorities piloted a Bill via the Lok Sabha to amend the Aadhaar law. The change aims to allow the Aadhaar card holder to voluntarily use Aadhaar for KYC functions. The Bill has been exceeded via the Lok Sabha and awaits clearance through the Rajya Sabha.
4. Stricter tax administration
The BJP government’s closing term noticed the easy cash marketing campaign post demonetisation, various tweaks in tax guidelines and legal guidelines to plug leakages and placed a take a look at on coins transactions (for example, the new income tax go back bureaucracy ask for a good deal more distinctive information than before). This trend may also continue given the go back of the authorities to energy.
5. Pension scheme for senior citizens might be extended in addition
The Modi government had, in price range 2018, extended the maximum investment allowed beneath Pradhan Mantri Vaya Vandana Yojana (PMVVY) to Rs 15 lakh according to senior citizen. The scheme has also been prolonged as much as March 31, 2020. As this scheme become delivered with the aid of the Modi government it is probable that the scheme can be extended further now that the authorities is lower back in power.
6. Time length of home loan subsidy scheme can be prolonged similarly
Currently, the credit score-connected subsidy scheme (CLSS) for home loans for the Middle Income Group (MIG) results in March, 2020. The then Union Housing and Urban Affairs Minister, Hardeep Singh Puri, said, “till December 30, 2017, round three.Four lakh beneficiaries have availed the CLSS below the PMAY (Urban)”. In view of this, Puri, on December 31, 2018, extended the scheme for one-12 months, i.E., until March 31, 2020.
With the BJP set to shape the authorities again for the next 5 years, the chance of the term of the scheme for those inside the MIG class being prolonged further -perhaps until 2022–is excessive. This can be finished to assist accomplish the government’s vision of ‘Housing for all’ with the aid of 2022 efficiently.
7. Promotion of and protective measures for electronic payments
The in advance Modi government had taken numerous steps to promote digitisation of monetary transactions to make India ‘coins-lite’. This trend is likewise anticipated to maintain. The Reserve Bank of India has already introduced that it will quickly provide you with a new set of patron-protection measures aimed toward enhancing person self belief in digital charge channels.
The new customer-protection measures on the playing cards for digital payments may additionally consist of compensation framework for failed transactions and a common time body for all accepted digital price structures to reply to purchaser complaints.
8. Interim price range 2019’s tax adjustments here to live
The Modi government’s return to energy is also expected to set at rest any fears that the legal guidelines made in its meantime price range 2019 can be rolled again by means of a new government following the overall elections. The fundamental among these consist of: complete earnings tax rebate for the ones earning up to Rs 5 lakh in step with annum, growth in preferred deduction from revenue to Rs 50,000, elimination of tax on notional hire on 2nd residence, hike in TDS threshold restrict and so forth.