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Not just sharp; it was a street-smart budget

The Interim Budget 2019 (if we may call it so) has sent a powerful message to the Indian people at large: that the government means business! For the first time, a full-fledged reformist and people-friendly colour has been given to the budget. Here are some of the key takeaways from the budget from a macroeconomic and capital markets standpoint.

Key takeaways from the Union Budget 2019

The budget—aimed at giving a big push to rural incomes—has tried to put money in the hands of the urban middle class. Here is how it will make a difference:

Particulars Amount
Total Income Rs.10,00,000
Exemption u/s 24 for interest on house property Rs.2,00,000
Exemption under Section 80C - Investments Rs.1,50,000
Additional benefit for NPS investments Rs.50,000
Exemption u/s 80D for health insurance (self and senior citizen parents) Rs.52,000
Net income after all exemptions Rs.5,48,000
Enhanced Standard Deduction Rs.50,000
Net Taxable Income Rs.4,98,000
Tax payable at 5% in excess of Rs. 2.50 lakhs Rs.12,400
Tax Rebate u/s 87 subject to maximum of Rs.12,500/- available Rs.12,400
Net Tax Payable Nil

Overall, this budget will go down as a one that is sharp, well timed, and street smart. Both, the markets and the middle class surely have reasons to celebrate!

Categories: Outlook