For the middle class, millions of employees on the unorganized sector and farmers, the Union Finance Minister has proposed some tax breaks. People who are earning up to 5 lakhs will be exempted from the tax benefits. There will be a support income of Rs. 6000 per year for the farmers who will have possession of 5 hectares. The unorganized sector will get a Rs 3000 per month as pension.
# Tax Exemptions On Service And Investments: If you are a web consulting company in India, there are lots of boost in the budget for service. As per the budget, there will be a growth of nearly 89% or will stay the same in the next 12 months. The budgets will likely to increase to 56% with the employee strength of 200 people. Nearly 43% of IT companies stay in the same position.
- If the individual makes an investment in the prescribed equities and provident fund, then the person will get some good benefit. There will no tax on the gross income up to 6.5 lakh rupees.
- From Rs1.8 lakh to 2.4 lakh, TDS for home rent will be increased.
- In banks and post office, the interest income up to 40, 000 will be tax-free.
- Under section 54, capital gain exemptions are available up to 2 crore. On two house properties, capital gain exemptions are available.
# Other Tax Relief :
- Within 24 hours, the income tax returns are to be processed and refunds need to be paid immediately.
- Without any interventions by officials, within two years, you need to have an assessment and verification of IT returns in an electronic way by the tax system.
# For Farmers :
- For the marginal and small farmers, there will be guaranteed income support of Rs. 6000/-.
Per year, farmers who are having 2 hectares of land will get Rs 6000/- in three equal installments. The scheme was effected from 1 December 2018.
# Interest Subvention For Farm Loan Takers :
- There will be an additional 3% interest subvention upon time repayment and farmers who are affected by the natural disaster will get 2% interest subversion.
- For animal husbandry, the Kamdhenu scheme has been announced.
# GST :
- For house buyers, there will be a reduction in GST.
- From Rs 6.38 lakh crore in 2013- 14, direct tax collections are increased to almost Rs 12 lakh crore. From 3.79 crore to 6.85 crores, the base has been raised.
The budget will provide some great benefits to the web consulting company in the long run and will fulfill the needs of the IT companies.