HIGHLIGHTS FROM UNION BUDGET 2019
The key takeaways from the primary budget of the second Narendra Modi government tabled by minister of finance Nirmala Sitharaman within the Parliament on 5th of July, 2019. You’ll be able to see that merchandise and services would get cheaper after the Budget and what’s expected to be costlier.
Income Tax on companies propose to 25% if annual turnover is up to Rs.400 crore as against a current turnover of Rs.250 crore
The surcharge has been enhanced for those earning 2-5 crore and people earning 5crore and above. The effective rate for these classes can increase by around 3%-7% respectively.
ITR prefilled with more information shall be made to the assessee.
FM says to discourage the follow of creating business payments in money the government proposes to levy TDS of 2% on money withdrawal exceeding Rs.1 crore in a year from the bank account.
An expenditure of Rs.70,000 crore to be provided to Public Sector Banks (PSBs) so as to boost up capital.
FM proposes to create the 2 documents that are Aadhaar and PAN interchangeable in order so that the returns can be filled using Aadhaar.
The government proposes to consider supply Aadhaar cards to NRIs with Indian passports in India while not having to wait for the mandatory 180 days.
The government proposes an additional deduction of interest of Rs.150000 paid on loan taken for the purchase of a house under an affordable housing scheme.
The time limit of exemption from capital under 54GB on house property for investment in startups extended till 31st of March,2021.
Regulation of HFCs to move to RBI from NHB.
Nearly 1.95 crore homes are projected to be provided to eligible beneficiaries beneath the Pradhan Mantri Awas Yojana. The completion of homes that needed 314 days in 2015-16, it currently returns all the way down to 114 days since 2017.
Faceless e-assessment shall be implemented where notices shall be issued online and allocation of the case to officers shall be made on a random basis.
The Securities transactions tax (SST) is proposed to be restricted to the difference between settlement and strike price of options.
Startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium.
A mechanism of e-verification will be put in place and with this; the funds raised by startups will not require any tax scrutiny
Additional Income tax exemption of Rs.1.5 lakhs paid on loan taken for the purchase of an electric vehicle.
New Educational Policy to be brought in to transform the Indian educational system, major changes in higher as well as the school system to be brought in.
FM proposes to expand self facilitate teams to all or any districts; one lady in each SHG to induce loan up to Rs. 1lakh underneath Mudra Yojana.
Focus on investment in infrastructure, national highways and aviation sectors
The second part of Bharat mala bone to develop state highways
A comprehensive restructuring of national highways are obsessed
Pension benefit to be offered to around 3 crore retail traders and shopkeepers with annual turnover less than Rs.1.5 crore under Pradhan Mantri Man Dhan Scheme.
GOLD & PRECIOUS METAL
According to the Budget proposals, import duty to be hiked on gold and precious metals to 12.5%, from the current level of 10%.
PETROL & DIESEL
Special additional excise duty of Rs.1 per litre is imposed on petrol and diesel.
Jal Shakti Ministry will look at the mgmt. of our water resources and water supply in an integrated and holistic manner and will work with states to ensure ‘Har Ghar Jal’, to all rural households by 2024 under ‘Jal Jeevan Mission’.
The government will invest widely in agricultural infrastructure and support private entrepreneurship in driving value addition to farmers produce and those from allied activities too, like bamboo, timber and also for generating renewable energy.
9.6 Crore toilets have been, more than 5.6 lakh villages have become open defecation free. FM proposes to expand the Swachh Bharat mission to undertake sustainable solid waste management in every village.
Government to streamline multiple labour laws into a set of four labour codes
The government is developing seventeen picture business enterprise sites as best holidaymaker centres to boost the flow of domestic and foreign tourists to those destinations. The objective of reserving wealthy social group heritage a digital repository on the life and culture of the tribe is held on.
The thrust of this Budget was on social infrastructure, ease of living and technology-led governance aimed at inclusive and equitable growth. The salaried class with a taxable income of up to INR 5 lakh will have higher disposable incomes. Direct Benefit Transfer to farmers will support rural demand. The Pradhan Mantri Shram-Yogi Maandhan Yojana will provide social security to a large number of marginal wage earners in the country. The Real Estate sector will see more activity and the allied sectors of steel and cement will get a boost. With enhanced spending and direct benefit transfers, there is an obvious concern about inflationary pressures. However, given that capacity utilisation is still around 70%, we believe that expectations of inflationary pressure will be muted. The Government’s vision to create a tech-enabled tax system is a welcome initiative. In all, this Budget has set the tone for considerable future discourse.