Budget 2019-20: Highlights and Tax Slab

Budget 2019-20: Highlights and Tax Slab

The Modi government today submitted the Union Budget 2019-20 after a pre-election populist budget in February 2019 to increase infrastructure and foreign investment at a moment when the economy is showing signs of a slowdown.

Taking a pragmatic strategy, Finance Minister Nirmala Sitharaman today announced no adjustments to personal income tax rates, but a surcharge was levied on the super wealthy. She also attempted to boost development by reducing corporate tax and sops to the housing, start-ups and electric vehicles sectors.

Sitharaman said that digital payments will become cheaper, govt will launch an ATM-like One Nation One Card for pan-India travel, and fresh model rental legislation will be introduced to increase affordable housing.

Here are all the major points from the speech of the Finance Minister

Taxes:

  • No change in rates of personal income tax.
  • Additional Rs 1.5 lakh tax relief on home loan to buy a house up to Rs 45 lakh.
  • Custom fuel hike by 1 rupee, gold and valuable products ; petrol & diesel to get more expensive.
  • 3% surcharge on Rs 2 crore revenue; 7% on Rs 5 crore and above.
  • Corporate tax with revenue of up to Rs 400 reduced from the present 30% to 25%.
  • PAN and ITR Aadhaar interchangeability for those without PAN cards.
  • The GST Council recommends reducing the tax rate on EVs from 12% to 5%.
  • On tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera, duties have been increased.

Affordable housing:

  • Democratic rental laws. To promote house renting, modern tenancy policy will be shared with countries.

To promote digital payments:

  • 2% TDS on the annual withdrawal of Rs 1 crore from your company payment bank account.
  • No electronic payment fee: MDR fees for cashless payment refunded.

Living convenience:

  • NRIs Aadhaar card upon arrival in India.
  • Rs 3,000 monthly pensions for informal sector employees

Transportation

  • Interoperable One Nation One transportation card: ATM-like universal transportation card on different modes of transportation (metro, highway, rail, etc.).
  • Govt plans to establish the manufacturing, repair and operating industries of MRO.
  • PPP to be used to develop and deliver passenger freight services more quickly.
  • A comprehensive restructuring of the National Highways Grid Development Program.
  • Government plans to use rivers to decontaminate highways and railways

Economy:

  • Fiscal deficit of 3.3% of GDP in FY 19.
  • Govt will begin to raise some foreign currency borrowing.
  • Govt’s external GDP debt is one of the world’s lowest.

Women empowerment:

  • Nari tu Narayani: Women SHG Interest Subsidy Program to expand to all Indian districts.
  • Rs 1 lakh loan to be granted to employees of SHG females.
  • Rs 5,000 rupees overdraft facility can be used by every verified female SHG member with a Jan Dhan account.

Banking reform:

  • Govt will provide one-time 6-month loan guarantee when purchasing high-rate pooled NBFC assets amounting to Rs 1 lakh crore in this FY.
  • Proposal to provide PSU banks with Rs 70,000 crore capital.
  • HFC (Housing Finance Cos) regulation to transfer from the National Housing Bank to RBI.

Divestment:

  • Aim to revise this policy of maintaining 51% interest in PSUs.
  • Continue to strategically divest selected CPSEs.
  • Rs 1.05 lakh crore target for FY 20.

Railways:

  • A fresh model of PPP will introduce Indian railways to fresh dawn.
  • Railways should be urged to invest more through SPVs in the suburban rail network.
  • Railways will need Rs 50 lakh crore investment between 2018 and 2030.
  • Massive railway station upgrade program to be introduced in 2019.

MSME:

  • Proposal for startups to limit angel tax.
  • Angel tax: The I-T department will not require scrutiny for start-up.
  • 2% interest subsidy on new or incremental loans for GST-registered MSMEs.
  • The scheme’ Stand Up India’ to proceed until 2025.
  • New start-up television channel.
  • Pension advantage expanded to retail traders with less than Rs 1.5 crore annual turnover.
  • Creation of a new payment platform for MSMEs.

Education:

  • Govt to launch the program ‘ Study in India’ to attract higher education learners from abroad.
  • Allocate Rs 400 crore to higher education organizations of world class in the 20th financial year.
  • Unveiling a fresh policy on education.
  • National Research Foundation to finance, coordinate and encourage country-wide research.
  • New Commission for Higher Education focusing on greater autonomy.
  • New domestic education policy for the school and higher education modifications.

Tourism:

  • 17 to be created iconic world-class tourist sites. FDI:
  • Local supply standards for the single-brand retail industry will be relaxed.

Investment:

  • Rationalization and simplification of existing KYC standards for FPIs to make it more investor-friendly.
  • Market long-term bonds.
  • Enabling FIIs & FPIs to invest in NBFC debt securities.
  • Credit Guarantee Enhancement Corporation to establish long-term bonds focusing specifically on the infra-sector.
  • Propose SEBI Social Stock Exchange to list social enterprises and voluntary organizations.
  • Open FDI in the fields of aviation, insurance, AVGC animation and media.
  • A fusion of portfolio path NRI with route FPI.
  • In some businesses, the statutory limit for foreign investment should be increased.
  • Setting up a corporation to enhance loan guarantee.
  • Govt will take action to interoperate RBI & SEBI depositories.
  • SEBI to mull from 25% to 35%, increasing the minimum government shareholding.
  • User friendliness of corporate bond trading platforms, including problems resulting from International Capping, will be assessed and Number of identification of securities.
  • Deepening the three-party corporate repo market for corporate debt securities. Plan to allow inventory exchanges to provide collateral for AA-rated bonds.
  • Annual Global Investor Meeting to attract worldwide players to come to India to invest.
  • To enable FPIs to subscribe to REITs ‘ listed debt documents.

Automotive industry:

  • The FAME II scheme aims at promoting quicker electric vehicle adoption through the correct incentives and charging infrastructure.

For Rural India:

  • our government’s focus is on Gaon, Garib and Kisan.
  • The ministry of New Jal Shakti will work with nations to secure Har Ghar Jal for all rural buildings by 2024.
  • Phase 3 of Pradhan Mantri Gram Sadak Yojana is planned to increase the length of 1,25,000 km over the next 5 years.
  • Govt is setting up 100 fresh clusters in FY 20 for 50,000 craftsmen.
  • Invest Rs 80,250 cr under PM Gram Sadak Yojana to upgrade highways.
  • All rural families, except those reluctant to have electricity by 2022.

Agriculture:

  • Promoting innovative zero Budget agriculture.
  • 10,000 fresh organizations producing farms.
  • 80 Livelihood business incubators and 20 technology business incubators to be set up under ASPIRE in 2019-20 to create 75,000 qualified agro-rural entrepreneurs.

Space:

  • India arose as a significant force in space. It’s time to commercially exploit our capacity.
  • New Space India Limited (NSIL) was integrated into ISRO’s tap advantages.

Sports:

  • The National Sports Education Board is set up under ‘ Khelo India ‘ to popularize sports at all levels.

Economic state:

  • Railways will involve Rs 50 lakh crore investment from 2018-30 onwards.
  • Schemes like Bharat Mata, Sagarmala and UDAN bridge the urban divide of rural areas and improve our transport infrastructure.
  • Gandhipedia’ is being created to appreciate the beneficial Gandhian values of young people.
  • In the latest election, the people’s unambiguous mandate set the ball rolling for New India.
  • In the last four years, NPAs recover Rs 4 lakh crore, NPAs down Rs 1 lakh crore in the last one year.
  • The inauguration of Rashtriya Swachhta Kendra in Rajghat on 2 October.
  • The Indian people have confirmed their two objectives for the future of our country: national security and economic growth.
  • Yakeen ho to koi raasta niklata hai, hawa ki awt(protection) bhi le kar chiragh jalta hai’.
  • It took us more than 55 years to achieve a $1 trillion economy, but in just 5 years we added $1 trillion.
  • In the next few years, we could very well achieve $5 trillion.
  • Last mile delivery stood out, people felt the distinction in every corner of the nation; our goal was and continues to be Mazbooth Desh Ke Liye Mazbooth Nagarik.
  • The government sets out a 10-point New India vision.
  • This year, India will become an economy of $3 trillion. To attain a financial objective of $5 trillion, we need to continue taking many structural reforms.
  • Connectivity is the economy’s lifeline.

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