Union Budget 2019-20 Highlights

Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs recently presented Union Budget 2019-20 before Parliament. She announced no changes in personal income tax rates but levied an additional surcharge on the super-rich.

Finance Minister Nirmala Sitharaman presented the maiden budget of Narendra Modi government in the Lok Sabha on Friday. Also, Sitharaman said digital payments will get cheaper, the government will launch an ATM-like One Nation One Card for pan-India travel and a new model rental laws will be unveiled to boost affordable housing.

Key highlights of Union Budget 2019-20:

Direct Taxation: Union Budget 2019-20

Interchangeability of PAN and Aadhar for ease and convenience of taxpayers. The income Tax return can be filed using the Aadhar Number.
Proposal to give relief in levy of securities transaction tax.
Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 18% from 15%.
To discourage cash payments TDS@2% on withdrawals exceeding 1Cr per annum from a bank account.
35AD extended to Li-On battery, Semi-Conductor, Laptops, Fabrication & Photo Volic.
Interest deduction on housing loan under Section 80EE increased by 1.5 lakh 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.
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.
Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 22% from 15% – FY 2019-20.

Education:

Greater focus on research and development – National Research Foundation to fund and promote research -the pooling of research grants from various ministries and disbursing them, preventing duplication of research projects.
National education policy to propose major changes in both secondary and higher education.
For the Youth – New national educational policy to transform the Indian education system.
Swayam Initiative – Digital education to be promoted.

Household:

Har Ghar Jal – to all rural household by 2024.
Provision of housing, electricity, clean cooking facility, safe and adequate drinking water to all in rural India.
7 crore LPG connections delivered to rural households.
Encouragement of rainwater harvesting, groundwater recharge, and management of household wastewater for reuse in agriculture.

Infrastructure:

The second phase of Bharat Mala to develop state highways.
A comprehensive restructuring of national highways will be taken up.
Focus on investment in infrastructure, national highways and aviation sectors.

MSME:

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.
350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans.

NRI:

Proposal for Issuance of Aadhar Card on arrival for NRIs with Indian PassportS.
To increase NRI investment in Indian capital market – NRI portfolio scheme route and FPI route should merge.
Aadhaar card for NRI’s post arrival in India.

Agriculture:

Govt to promote innovative zero Budget farming.
10,000 new farm produce organizations.
80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.

For Rural India:

Gaon, Garib, and Kisan are the focus of our government.
New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024.
Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
Govt will set up 100 new clusters for 50,000 artisans in FY 20.
To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana.
Every single rural family, except those unwilling, to have electricity by 2022.

Banking and Financial Institutions:

Government has smoothly carried out consolidation, reducing the number of PSBs by 8.
NPAs of commercial banks reduced by over 1 lakh crore over last year.
Proposals for strengthening the regulatory authority of RBI over NBFCs – Debenture Redemption Reserve to be maintained.
Record Recovery of over 4lac crore with IBS.
Proposal to return regulatory authority from NHB to RBI.
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.
Reforms will be taken to strengthen governance in Public Sector banks.
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.

Railway:

Indian Railways to be encouraged to invest more in urban and suburban regions.
Railway infra would need an investment of 50 lakh crores between 2018 and 2030.
657KM of Metro Rail operational in the country.
PPP to be used to unleash faster development and delivery of passenger freight services.
Railway Station Modernisation will be launched this year.

Electric Vehicles:

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.

Technology:

Solar storage batteries and chargers included in the 35AD deduction.
Program of mass scaling of LED Bulbs – Approximately 35 Crores of LED bulbs distribute.
Focus on VR, AI, Robotics training to youth to align India with the World.
Machines and robots to be deployed for scavenging.

Women Empowerment:

Committee to be formed with Public and Private stakeholders for gender equality.
Every SHG Women having Jan Dhan Account – Rs. 5,000/- overdraft allowed.
Loan up to 1 lakh under Mudra Scheme for Women Entrepreneurs.

Proposed Pension benefit to 3 crore retail traders and shopkeepers whose annual turnover is up to Rs 1.5 crore.

Government to introduce a host of exclusive programs for Startups on DD News.

To popularise Sports at all levels, National Sports Education Board for development of sportspersons to be set up under ‘Khelo India.’