Finance Minister’s 1 hour 17 -minute budget speech and a budget of about 50 lakh crore rupees. It is very difficult for the common people to understand it completely. That is why 3 experts of Bhaskar have decoded 8 important things of this budget in easy language, which you should know…
.
1. No tax on income up to Rs 12.75 lakh, but conditions implemented*
‘Moti is found without asking, demands will not be found’ … In this budget, the middle class has got that pearl. No tax will be levied on earnings up to 12 lakhs. Employed people will also get additional standard deduction of 75 thousand rupees. That is, income tax free of up to Rs 12.75 lakh. But there are 2 conditions in this …
i. This change has taken place only for new tax regime. That is, those who have chosen Old Tax Reseam will not get any benefit.
ii. This benefit will be especially available to them, whose income comes from salary. If you have done a capital gains, that is, put money in the stock market, put money in mutual funds, selling and selling the house and there is a tax liability on it, then this system will not be implemented.
2. The government will have a loss of Rs 1 lakh crore in direct tax
After the announcement on income tax, the central government may lose Rs 1 lakh crore in direct tax, while in the indirect tax, there may be a loss of revenue of 2,600 crore. However, a large part of these will come back to the government.
For example- If the change in tax, your 10 thousand rupees left. Out of these, if you shop for 8 thousand rupees, then a part of it will return to the government with things like GST, custom duty. Therefore, the government will not suffer much harm.
3. People will get money in their hands, if they spend more, the economy will boost
85% of people in the country earn less than 12 lakh rupees. After the announcement of tax, people will save money and people will spend this money on other things. This will give boost to FMCG, Auto, Real Estate and other sectors.
This budget is such that development has been promoted through consumption lead growth. For this, you have to understand a small economical principle, which is called Virtuous Cycle i.e. the list. Its essence is that one good thing starts with another good thing.
Changes in income tax will bring additional money to people. Now if you spend a part of this money, then it will give companies a chance to increase production. If production increases, employment opportunities will be created. If employment opportunities are made, people will get money in their hands. If the money comes, the demand will increase. This is called a list cycle i.e. Virtuous Cycle in Economics.
4. Indications to abolish old tax regime
There has been no change in the old tax regime in this time. The government did not even discuss this in Parliament about this. The old tax regime has exemption under section 80C and other deductions, but after today’s announcement, the new tax regime looks more effective.
In the upcoming New Income Tax bill, it may be that any time limit should be given to eliminate the old tax. Whether it is 2, 3 or 4 years old. The intention of the government is clear that the tax system will be the same, that too New Tax Reset.
5. Apart from income tax, two big announcements- TDS and TCS
Apart from income tax, two more important announcements were made- TDS i.e. tax deducted at source and TCS i.e. tax collected at source.
Under Section 194A, Senior Citizen used to get TDS on interest income of up to Rs 50 thousand earlier, which has now been increased to Rs 1 lakh. At the same time, for other people, this tax on interest income has been increased from 40,000 to 50,000.
This means that the money that used to be run through TDS and at the same time your income tax may not be made, but to get refunds you used to file returns. You will not need it. On one side, the return became easy for you and on the other hand you will get money in your hand.
6. Government considered agriculture as ‘Sector of Future’, made many big announcements
The government is focusing more about agriculture. If we look at the economy survey, agriculture has been called ‘Sector of the Future’. The government has said to launch the mission for pulses. This is very important, because pulses and mustard oils are imported on a large scale in the country.
However, since the rupee weakened, it has been feared that lentils and mustard can be more expensive. Their prices have also increased in recent few months. The mission that the government has said to deal with this problem is a good initiative for the agriculture sector. In the coming time, farmers will insist on increasing the yield of these decisions after paddy and wheat.
7. Elections in Bihar this year, hence more than other states
There is no doubt that the budget has been more convenient for Bihar. In the budget, a new scheme has been announced for Bihar to expand the Greenfield Airport, Patna IIT, set a separate board for Makhana and to deal with floods in Mithilanchal.
Assembly elections will be held in Bihar after a few months. Also, there is only one government in the Center and the state, due to this it was already expected that there could be some special announcement for Bihar.
8. Capital expenses are not as expected, it is disappointing
The focus of the budget of this time is ‘Consumption Lead Growth’. Therefore, there is not much increase in capital expenditure. This is less according to the needs of development. It seems that the government has given most attention that if the consumption increases now, it will find a way to increase capital expenses.
——–
Expert panel
Shishir Sinha The Hindu is an associate editor in the business line. Media also teaches business journalism to students.
Swati Kumari: Personal finance platforms are founders of Bwealthy. Many media houses have worked as a business journalist.
——-
For all the big news related to the budget- Click
Source link
[ad_3]
