Union Finance Minister Nirmala Sitharaman presented the budget of Narendra Modi 2.0 government in Lok Sabha.
“Gaon, Garib and Kisan is at the centre of all policies of this government. Between 2014 and 2019, we provided rejuvenated Centre-State dynamic, cooperative federalism, and the GST Council, said Ms. Sitharaman.
– Finance minister proposed to enhance surcharge on individual income of Rs 2-5 crore and over Rs 5 crore by 3% and 7% respectively. She said that those in the highest income bracket need to contribute more to national development.
– Custom duty on gold and other precious metals from 10% to 12.5% has been proposed.
– To provide further impetus to affordable housing, additional deduction of Rs 1.5 lakh on interest paid on loans borrowed upto March 31, 2020 for purchase of house up to Rs 45 lakhs.
– Special additional duty and road and infrastructure cess on diesel and petrol to be increased by Re 1/litre.
– “From 1.85 trillion dollars in 2014, the economy has reached 2.7 trillion US dollars; We can very well reach 5 trillion dollars in the next few years. The Indian economy will grow to become a 3 trillion dollar economy this year itself.”
– Government has already moved GST council to lower the GST rate on electric vehicles(EV) from 12% to 5%.
– Finance minister said that the fiscal deficit in 2019 is 3.3%, brought down from 3.4%.
– All companies having annual turnover of 400 crores, will now be under the bracket of 25% corporate tax rate . This will cover 99.3% of all the companies.
– To provide further impetus to affordable housing, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed upto 31 March 2020 for purchase of house up to Rs 45 lakhs.
– ‘Gandhi-pedia’ too to be developed on the lines of Encyclopedia to help promote Gandhian school of thought.
– PAN and Aadhaar will become inter-changeable. You can use your Aadhaar number to file your I-T Returns soon.
– 5 lakh minimum limit announced for taxpayers. In view of rising income levels, those in bracket of Rs 2-5 crore and Rs 5 crore will see increase in effective tax rate by 3% and 7%, respectively.
– GST rate on electric vehicles proposed to be lowered to 5%. Additional income tax deduction of 1.5 lakh on interest on loans taken to purchase electric vehicles.
– Additional deduction of 1.5 lakh on loans up to March 31 2020 for buying affordable houses, giving 7 lakh benefit to home buyers.
– Proposal to provide Aadhaar cards for NRIs with Indian passports, after their arrival in India with no waiting period.
– 20 Rupee coin coming up.
– Excise duty on fuel hiked by Re 1.
– To resolve the angel tax issue, startups will not be subject to any scrutiny in respect to valuation. Funds raised by startups will not require any scrutiny by the I-T department.
– TDS of 2% on cash withdrawals exceeding ₹1 crore in a year from bank accounts, to discourage business payments in cash.
– Period of exemption for capital gains arising from sale of house for investment in startups to be extended to March 31, 2021.
– 70,000 crore recapitalisation for public sector banks.
– 1.05 lakh crore disinvestment target for the year.
– TV channel to be launched for promoting startups and to help matchmaking for funds
– New national educational policy to transform Indian education into one of the best in the world. Study in India that will focus on bringing in foreign students.
– 50 lakh crores proposed for Railway infrastructure.
– By 2022, the 75th year of Independence, every single rural family, except those who are unwilling to take the connection, will have electricity and clean cooking facility.
– Stress on Zero Budget Farming which is a form of gardening as a self-sustainable practice with minimum external intervention.
– The pension benefit will be extended to 3 crore retail traders under PM Karam Yogi Maan Dhan Scheme. It requires only Aadhaar numbers and bank accounts.
– 1 crore loans proposed to MSMEs. The Government will extend pension benefits to 3 crore retail traders and shopkeepers who have a revenue of less than ₹1.5 crore
– Investment by FIIs and FDIs in debt securities in infrastructure debt funds to be allowed. Minimum public shareholding in listed companies can be increased from 25% to 35%
– Global Investors Meet to happen in India.
FinMin Sitharaman presents Union Budget 2019-20
