Union Budget 2019
On Friday 5th July 2019 Finance Minister Nirmala Sitharaman presented the Union Budget 2019.
The Key Highlights of Budget 2019 are:
“Direct Income Tax”
- For home loan taken on self-occupied house property till 31/3/2020, the interest deduction on housing loans increased from 1.5 lakhs, home of ₹45 lakh rupees would be eligible for it.
- Now Income tax returns can be filed using Aadhaar number!! In budget 2019 there has been an Interchangeability of PAN and Aadhaar for ease and convenience of taxpayers.
- Pre-filled tax returns will be made available to the taxpayers.
- To control cash transactions, 2% of TDS will be charged on the withdrawal of more than ₹1 Crores per annum from one bank account.
- There is a surcharge from 15% to 18% on the taxable income between ₹2 Crores and ₹5 Crores in case of an individual taxpayer.
- The surcharge for persons with taxable income between ₹5 Crores to ₹10 Crores has increased from 15% to 22%.
- Proposal to relieve the benefits of the transaction tax of securities.
- Corporate tax of 25% which is applicable to companies with an annual turnover of more than ₹250 Crores, will be applicable with an annual turnover of ₹400 Crores.
- 35AD extended to Li-on battery, semi-conductor, laptop, fabrication and photo volt.
- More focus on skill sets required by the youth which will encourage them to apply for job opportunities abroad like language skills and AI (artificial intelligence).
- To encourage startups in the country, a show will be started on DD Nation providing all the information & ideas regarding startups, this program will be done by startups themselves.
“Naari Tu Narayani”
- To encourage women entrepreneurship.
- Women self-help groups interest subvention program all over the district.
- ₹50,000 overdraft to every woman self-help group (SHG) member who is having a Jan Dhan Bank Account.
- Under the Mudra Scheme, one woman in every SHG is eligible for a loan of ₹1 lakh.
- Government is considering to go below 51% of ownership for the non-financial public sector undertakings, but it will be to an appropriate level and depending on the case as well.
- ₹70,000 Crores to be provided to the Public Sector Banks to boost capital & improve credit.
- The pension benefits extended to above 3 crore retail traders & shopkeepers whose annum turnover is less than 1.5 crore under a new scheme namely Pradhan Mantri Karam Yogi Man Dhan Scheme. Enrolment to the scheme is simple which will require Aadhaar and bank account and the rest will on self-declaration.
- GST Council to lower the GST rates on electronic vehicles from 12% to 5%.
- ₹1.5 Lakh income tax deduction on the interest paid towards the purchase of an electronic vehicle.
- To promote e-mobility custom duty on certain parts of the electronic vehicles has been exempted.
- ₹350 crore allotted for the GST- registered MSMEs for fresh or any incremental loan on 2% interest subvention.
- Taxpayers with less than ₹5 crore of yearly turnover now need to file only quarterly returns.
- Implementation of a fully automated GST refund module will be done. Now, multiple tax ledgers will be replaced by one.
- To achieve the goal of Make in India custom duty on certain items will be increased.
- 5% custom duty on imported books.
- Proposal to extend Swachh Bharat Mission to every village to undertake solid waste management.
‘Study in India’
- The minister says-” India has the potential to become the hub for higher education. Therefore I propose to start a program ‘Study in India’ that will focus to bring foreign students to study in our higher institutions”.
- By 2022, every rural family will have electricity and clean cooking facility, the minister focus on’ it will be apart from those who will be unwilling to take’.
- In the second phase of PMAY-Gramin, 1.95 Crore houses to be provided to the eligible beneficiary.
- 10,000 new farmer organization to be formed to encourage farmer over the next 5 years.
- Electronic fundraising platform, a social stock exchange, will be set up to list social enterprises and voluntary organization who are working for social welfare objectives.
- For NRIs Aadhaar Card to be issued with passport after their arrival in India without waiting for 180 days which was mandatory earlier.