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