Friday, July 5, 2019

Indian Union Budget 2019 - Highlights and New Expectations of Modi 2.0

Key takeaways from FM Nirmala Sitharaman's maiden Budget speech

Indian Union Budget 2019 - Highlights and New Expectations of Modi 2.0

Part 1

India is the largest economic country after China and America in the world.

The Indian economy will grow to become a $3 trillion economy in the current year itself.

Pension benefits to 3 cr retail traders and shopkeepers whose annual turnover is up to Rs. 1.5 Cr.

The government aims to provide tapped water to every household by 2024 – to boost plastic piping demand.

Every rural household to be electrified by the end of 2022

To provide the clean cooking facility, the government is planning to extend its Pradhan Mantri Ujjwala Yojana to all rural families by 2022

Loans of up to INR 1 Cr for GST registered MSMEs on fresh or incremental loans @2% interest.
A model tenancy law will be designed and circulated to states to promote rental housing

The new program proposed "Study In India"  to invite global students in India

India will become Open Defecation Free (ODF) by October 2019.

The government proposes to streamline multiple labor laws into a set of 'four labor codes'

Aadhaar card for NRIs with Indian Passport without waiting for 180 days post arrival

Rs 70,000 crore capital infusion into government-owned banks this year to boost credit improvement.

Women Jan Dhan account holder will be eligible for an overdraft of Rs. 5000

Women borrowers are eligible for an additional INR 1 lakh loan under Mudra scheme.

New Rs 1, 5, 10 & 20 coins to be available for public use soon

 Part 2  of the Budget Speech 

Taxation

All companies with an annual turnover of Rs 400 crore or less to be taxed under the lower tax of 25%. Covers 99.3% of all companies. Only 0.7% of companies will remain outside of tax bracket
.
Direct tax revenue has grown 78 percent from 2014 to 2019

Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles.

Additional deduction of INR 1.5 lakh (total deduction, INR 3.5 lakh) on interest on home loans

PAN and Aadhar are now interchangeable! If you don't have PAN, you can quote Aadhar number for you IT return filing. Sitharaman proposes to make the two documents interchangeable so that Aadhaar can be used for verification with no requirement for PAN. ITR can be filed without PAN and Aadhar can be used for filing ITR.

TDS on cash withdrawal exceeding Rs 1 crore in a year

Enhances the surcharge on individuals having taxable income from ₹2-5 crore and ₹5 crore and above. Effective tax rates will increase by 5 and 7 percentage points respectively.

Custom duty on Gold and other precious metals to be hiked from 10% to 12.5%

Additional Basic excise duty on cigarettes has been proposed.

Additional Excise Duty of INR 1/per liter on petrol and diesel

No change in IT slab






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