Monday, July 8, 2019

Budget 2019 Highlights: Union Budget Highlights

1. Direct Taxation – Budget 2019 Highlights
  1. Interest deduction on housing loan under Section 80EE increased by 1.5 lakhs for home loans taken on self-occupied house property by 31/3/2020, houses with the cost of Rs 45 lacs will be eligible for this. 
  2. Interchangeability of PAN and Aadhar for ease and convenience of taxpayers! Income Tax return can be filed using Aadhar Number!!
  3. To discourage cash payments TDS@2% on withdrawals exceeding 1Cr per annum from a bank account
  4. Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 18% from 15%
  5. Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 22% from 15% – FY 2019-20
  6. Proposal to give relief in levy of securities transaction tax
  7. Corporate tax worth 25% that is applicable to companies with an annual turn over Rs 250 crore will be applicable to the ones with an annual turnover of Rs 400 crore
  8. 35AD extended to Li-On battery, Semi-Conductor, Laptops, Fabrication & Photo Volic
2. Infrastructure – Budget 2019 Highlights
  1. Focus on investment in infrastructure, national highways and aviation sectors
  2. The second phase of Bharat Mala to develop state highways
  3. A comprehensive restructuring of national highways will be taken up
3. Education – Budget 2019 Highlights
  1. National education policy to propose major changes in both secondary and higher education
  2. Swayam Initiative – Digital education to be promoted
  3. Greater focus on research and development – National Research Foundation to fund and promote research – pooling of research grants from various ministries and disbursing them, preventing duplication of research projects
  4. For the Youth – New national educational policy to transform the Indian education system
4. Startup Development – Budget 2019 Highlights
  1. Government to introduce a host of exclusive programs for startups on DD News
5. Household – Budget 2019 Highlights
  1. Provision of housing, electricity, clean cooking facility, safe and adequate drinking water to all in rural India
  2. Encouragement of rainwater harvesting, groundwater recharge, and management of household wastewater for reuse in agriculture
  3. Har Ghar Jal – to all rural household by 2024
  4. 7 crore LPG connections delivered to rural households
6. Pension – Budget 2019 Highlights
1.Proposed pension benefit to 3 crore retail traders and shopkeepers whose annual turnover is up to Rs 1.5 crore  
7. MSME- Budget 2019 Highlights
  1. 350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans
  2. MSME: Large-scale extensive reforms planned, government to create a platform for MSME payments
  3. MSME to get loans up to 1 crore within 59 minutes. Loans worth Rs. 350 crore already disburse
8. Women Empowerment- Budget 2019 Highlights
  1. Committee to be formed with Public and Private stakeholders for gender equality: FM
  2. Every SHG Women having Jan Dhan Account – Rs. 5,000/- overdraft allowed: FM
  3. Loan up to 1 lakh under Mudra Scheme for Women entrepreneurs: FM
9. NRI- Budget 2019 Highlights
  1. Proposal for Issuance of Aadhar Card on arrival for NRIs with Indian Passports: FM
  2. Aadhaar card for NRI’s post arrival in India
  3. To increase NRI investment in Indian capital market – NRI portfolio scheme route and FPI route should merge
10. Budget – Railway Budget 2019 Highlights
  1. Railway infra would need an investment of 50 lakh crores between 2018 and 2030;
  2.  PPP  to be used to unleash faster development and delivery of passenger freight services
  3. Railway Station Modernisation will be launched this year.
  4. Indian Railways to be encouraged to invest more in urban and suburban regions
  5. 657KM of Metro Rail operational in the country.
11. Banking and Financial Sector – Budget 2019 Highlights
  1. Reforms will be taken to strengthen governance in Public Sector banks
  2. NPAs of commercial banks reduced by over 1 lach crores over last year
  3. Record Recovery of over 4lac crore with IBS
  4. NPAs of commercial banks reduced by over 1 lakh crore over last year
  5. After Consolidation of Public Sector Banks, now 70,000 Crore of Capital boost for credit improvement
  6. Government has smoothly carried out consolidation, reducing the number of PSBs by 8
  7. NBFCs – that are fundamentally sound, will get fundings from govt to a total of 1lakh crore during the current financial year
  8. RBI has limited regulatory Authorities, Now the Regulatory Authorities of RBI over NBFC will be placed
  9. Proposals for strengthening the regulatory authority of RBI over NBFCs – Debenture Redemption Reserve to be maintained
  10. Proposal to return regulatory authority from NHB to RBI!
12. Electric Vehicles – Budget 2019 Highlights
  1. Lower GST Rate from 12% to 5% on Electric vehicle and Additional Income Tax Deduction of 2.5 Lakh on Interest paid on loan taken to purchase an electric vehicle
  2. To make electric vehicles affordable, additional IT deduction on 1.5 lakh on interest paid on loan taken to purchase electric vehicles
13. Technology – Budget 2019 Highlights
  1. Solar storage batteries and chargers included in 35AD deduction: FM
  2. Program of mass scaling of LED Bulbs – Approx. 35 Crores of LED bulbs distribute
  3. Machines and robots to be deployed for scavenging
  4. Focus on VR, AI, Robotics training to youth to align India with the World


₹ 11 lac crore tax collection from ₹ 6 lac crore tax collection in last 5 years

Corporate tax rate @ 25% for companies having ₹ 400 crore sales turnover, covering 99% companies

Investment linked incentives to select sectors under section 35 AD

1.50 lacs additional deduction on interest on loans taken for buying electric vehicles

Start ups - valuation scrutiny and identification of investors to stop 

Start ups assessments not to happen without prior approval

Cap gain from sale of residential house - reinvestment in start up can be made upto 31.3.21

Int deduction on housing loan to go up to ₹ 3.50 lacs for affordable house category 

NBFCs - to be at par with banks for bad debts allowance

80 LA deduction, exemption of DDT etc. for IFSCs

Adhar card and PAN to be interchangeable for filing

Prefilled tax returns to be made available to assesses having salary, cap gains and other income 

E scrutiny - faceless scheme to start this year without disclosing the name of AO

Digital payments - TDS of 2% on cash withdrawal exceeding ₹ 1 crore from bank account during the year

Merchants having ₹ 50 crore or more sales turnover not to levy charges on credit, debit card driven transactions

Surcharge to go up. Effective Tax rate to go up by 3 and 7 % for ₹ 2 to 5 crore and ₹ 5 crore and above