Union Budget 2019: Finance minister Piyush Goyal ignored the convention of not making tax proposals in interim budgets to give more disposable income to middle-class households. Tax rebates, higher exemptions and simplification of taxes are expected to please the middle-class voter in the election year. Sameer Gogia, director, Deloitte Haskins & Sells, spoke to Financial Express Online on the tax proposals in the Budget.

Here are the edited excerpts:

What do you think of the e-assessment scheme?

It is a bold move by the Finance Minister. We already have an e-assessment scheme since last year. They will revamp the tax department to ensure that all tax returns will be processed and refunds will be granted in 24 hours. The FM also said more than 99% of the returns were processed as it is when filed. So there was less scrutiny assessment.

He has reduced some compliances. There has been a jump in the number of taxpayers by around 80% in the last 4 years. This can bring more people into the tax net.

How will the move curb corruption?

Now there will be a back office to curb corruption. It will process returns without any interference from the taxpayer and assessing officer. This will reduce the chances of corrupt practices as there will be no interaction. Everything will be anonymous. The government has also been able to bring more than Rs 1.3 lakh crore in black money back into the system through various initiatives.

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What are the income-tax benefits proposed in the Budget?

The FM has tried to offer some relief to the middle class. He has increased the standard deduction from Rs 40,000 to Rs 50,000 and provided a tax rebate for people earning up to Rs 5 lakh. He has increased the TDS deduction on interest of small savings from Rs 10,000 to Rs 40,000. These are all benefits for the middle class. The FM has also extended the benefit of capital gains on the second house, which is a once in a lifetime opportunity. Through this, he also gave a push to the real estate sector.

On GST front, there will be various schemes and benefits from the GST Council because it could not be done through the Budget.