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
- 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
- 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
- Government to introduce a host of exclusive programs for startups on DD News
- 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
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
- 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
- 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
- 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.
- 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!
- 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
- 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
Achievements during 2014-19:
● 1 trillion dollar added to Indian economy over last 5 years (compared to over 55 years taken to reach the first trillion dollar).
● India is now the 6th largest economy in the world, compared to 11th largest five years ago.
● Indian economy is globally the 3rd largest in Purchasing Power Parity (PPP) terms.
● Strident commitment to fiscal discipline and a rejuvenated Centre-State dynamic provided during 2014-19.
● Structural reforms in indirect taxation, bankruptcy and real estate carried out.
● Average amount spent on food security per year almost doubled during 2014-19 compared to 2009-14.
● Patents issued more than trebled in 2017-18 as against the number in 2014.
● Ball set rolling for a New India, planned and assisted by the NITI Aayog.