Union Budget 2019-20 was presented in the parliament today by Union Finance Minister Nirmala Sitharaman. “Indian economy will grow to become 3 trillion dollar economy this year,” the 59-year-old Union Minister said in budget speech. “Gaon, Gareeb aur Kisan” focal point of all programmes,” she added. There will be no income tax for income less than Rs 5 lakh a year. Electric vehicles, affordable houses have become cheaper. Petrol, diesel, imported gold and precious metals, imported paper and paper products including printed books, CCTV cameras, imported cashew kernels and cigarettes have become expensive in this Union Budget 2019.
Budget Highlights from Finance Minister Nirmala Sitharaman’s Speech
- Rs 2 duty and cess will be levied on petrol and diesel per litre.
- PAN, Aadhaar will now be interchangeable for filing of income tax returns.
- Aadhaar will be issued for NRIs with Indian passports after arrival without mandatory waiting period.
- Power, clean cooking facilities for all families by 2022, water for all rural homes by 2024.
- Surcharge enhanced on individuals with Rs 2-5 crore income by 3 per cent, Rs 5 crore and above by 7 per cent.
- Two per cent TDS on cash withdrawal exceeding 1 crore in a year from bank account to discourage cash transactions.
- Government considering increase in FDI in aviation, media.
- Government to encourage and facilitate the role of women through women-led initiatives
A look at budget highlights for tax, housing, social welfare, pensions, growth, infrastructure economy:
Budget Highlights: Housing
- 1.95 crore houses will be provided to eligible beneficiaries
- Centre proposes RBI to be regulator for housing finance companies
- Tax holiday on profits earned by developers of affordable housing
Budget Highlights: Tax
- Additional deduction of Rs 1 lakh on interest paid for affordable house of Rs 45 lakh, borrowed on or before March 31, 2020
- After interest deduction, affordable home buyers will gain tax benefit of Rs 7 lakh over the period of interest deduction
- Cash withdrawals over Rs 1 crore a year to be taxed at 2 per cent
Budget Highlights: Social Welfare
- One woman in every self-help group eligible for loan of Rs 1 lakh under Mudra scheme
- Centre proposes to consolidate and streamline multiple labour laws into only four codes
Budget Highlights: Pensions
- Pension to be provided to three crore retail traders
- Pension for shopkeepers, retailers with turnover less than Rs 1.5 crore
Budget Highlights: Growth
- Centre to invest in raising foreign direct investment in media and aviation
- There will be 100 per cent FDI for insurance intermediaries
Budget Highlights: Infrastructure
1.25 lakh km roads will be upgraded at a cost of Rs 80,000 crore
Budget Highlights: Markets
Centre proposes electronic fundraising platform to list social enterprises, voluntary organisations
This will help social enterprises working for welfare raise capital
Budget Highlights: Economy
India will grow to become a $3 trillion economy (from $2 trillion) in fiscal 2020
Budget Highlights: Income Tax
- No income tax for income less than Rs 5 lakh a year
- Surcharge on individuals with taxable income of Rs 2-5 crore raised to 3 per cent, and Rs 5 crore to 7 per cent
Budget Highlights: Start-ups
- A TV programme for start-ups under Doordarshan, designed and run by start-ups themselves
- Angel investors and start-ups who file tax returns won’t be subjected to scrutiny
- E-verification will resolve the issue of identifying the investor and the source of funds
Budget Highlights: Companies
Corporate tax rate of 25 per cent extended to all companies having annual turnover up to Rs 400 crore
Budget Highlights: What is cheaper, what got costlier
Electric vehicles, affordable houses, imported defence equipment, imported parts of electric vehicles, imported raw material for manufacture of artificial kidneys and imported wool fiber, wool tops have become cheaper.
Petrol, diesel, cash withdrawal over Rs. 1 crore/year, imported auto parts, imported gold and precious metals, imported paper and paper products including printed books, imported loud-speakers, indoor and outdoor unit of split AC, imported plugs, sockets, switches, CCTV cameras, IP cameras, PVC, Vinyl flooring, Metal fittings, tiles, imported cashew kernels and cigarettes have become expensive.
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