Budget 2019 for middle class is a question which has an answer which doesn’t satisfy all. Middle class man has always looked at the budget proposal every time but what benefits are really available has remained a question. Have a look….
The Financial Minister said in her maiden budget speech: “For realisation of the goal which is housing for all and affordable housing, a tax holiday has already been provided on the profit earned by developers of affordable housing. Also interest paid on housing loan is allowed as a deduction to the extent of Rs 2 lakh in respect of self occupied property. In order to provide further benefit, I propose to allow an additional deduction of Rs 1.5 lakh for interest paid on loans taken upto 31st March 2020 for a purchasing an affordable house upto Rs 45 lakh in value. Therefore, a person purchasing an affordable house now will get an enhanced interest deduction up to Rs 3.5 lakh. This will translate in to benefit of Rs 7 lakh to the middle class home buyers over a loan period of 15 years.”
The biggest announcement of the interim budget 2019 was that individuals having taxable income up to Rs 5 lakh will now be eligible for a tax rebate of up to Rs 12, 500, thereby, making their taxable income, tax free. Individuals whose income exceeds Rs 5 lakh can also become eligible for the rebate by utilising the tax-saving deductions available under sections 80C to 80U of the Income-tax Act.
“Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol and diesel,” Finance Minister Nirmala Sitharaman said in her budget speech on Friday. “I propose to increase Special Additional Excise duty and Road and Infrastructure Cess each by one rupee a litre on petrol and diesel.” Petrol and diesel will get dearer by Rs 2 a litre following a duty hike proposed in the budget.
A proposed increase in import duty on gold and other precious metal to 12.5%, from 10%, sending domestic gold prices sharply higher.
According to Business Time Analysis here’s what has become expensive:
Gold, silver, platinum
Cigarettes, smoking tobacco, snuff
Palm stearin and other oils having 20% or more fatty acid
Floor cover of plastics, wall or ceiling coverings of plastics
Articles of plastic
Uncoated, lightweight paper
Printed books and manuals
Ceramic roofing tiles and ceramic flags and paving, hearth or wall tiles
Stainless steel products
Base metal fittings, mountings and similar articles suitable for furniture, doors, staircases, windows, blinds, hinge for auto mobiles
Indoor and outdoor unit of split system air conditioner
Charger and power adapter of CCTV camera, IP camera and DVR / NVR; Digital Video Recorder (DVR) and Network Video Recorder (NVR); CCTV camera and IP camera
Optical fibres, optical fibre bundles and cables
Looking at the list above a middle class man but obviously wonders what is it that is exactly pocket friendly for him. Paying direct tax from his salary and again indirect tax on what not list of items a middle class man seems to carry the burden of taxes for generations.