Soon after finance minister N. Sitharaman presented her maiden budget on 5 June, businessmen to middle class amused what it holds for them. Like every year this year union budget 2019 too is a bag full of mix and matches few disappointment and happy moments. On the larger baseline, it does not have many changes in comparison to previous years. For taxpayers, with a taxable income of up to 2 crores, there are no significant ups and downs except few places where extra deductions become now available for environmental friendly issues like buying an electric car. Other than that it remains largely indifferent than before.
However, the Modi government has made richer people of India shell out little more money from their pockets, due to a marginal increase in the surcharge. For the people with a taxable income of up to 2 to 5 crore, the surcharge has increases to 15 percent to 25 percent that means the effective rate of tax will increase from 39 percent as compared to earlier rate of 35.9 percent. That means if you are businessmen earning 2.50 crore than the increase of close 3 percent makes the tax 95.06 lakhs as in comparison to 87.45 lakh in last year. This has surged the charges up to 8 lakh.
While buying luxury flats that include amenities like parking an swimming pool and extra TDS of 1 percent has to be given to the government, not only this if someone fails to disclose the information it will draw penalties. On the other hand for the middle-class income group who will be investing first time in the loan then they will be applicable for the total deduction of to 1.5 leaks in the tax, raising the deduction available from 2 lakh to 3.5 lakh to the self-occupied house.
For the people associated with make in India, the government has supported the good produced in own country meaning the custom duties has been increased on the larger base. That means an imported A.C will cost you now 8000 more. And bad news for the ladies, gold prices have been hiked as the import duties on gold, silver, and platinum have been increased.