Key Highlights of Union Budget 2019-20
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Friday made her maiden Budget Speech and presented the Union Budget 2019-20 in the Lok Sabha.
New Delhi: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Friday made her maiden Budget Speech and presented the Union Budget 2019-20 in the Lok Sabha.
The key highlights of Union Budget 2019 are as follows:
10-POINT VISION FOR THE DECADE
* Building Team India with Jan Bhagidari: Minimum Government Maximum Governance
* Achieving green Mother Earth and Blue Skies through a pollution-free India
* Making Digital India reach every sector of the economy
* Launching Gaganyan, Chandrayaan, other Space and Satellite programmes
* Building physical and social infrastructure
* Water, water management, clean rivers
* Blue economy
* Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables
* Achieving a healthy society via Ayushman Bharat, well-nourished women and children, the safety of citizens
* Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.
MASSIVE PUSH TO ALL FORMS OF PHYSICAL CONNECTIVITY
* Pradhan Mantri Gram Sadak Yojana
* Industrial Corridors, Dedicated Freight Corridors
* Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes
* State road networks to be developed in the second phase of Bhartamala project
* Rs 50 lakh crore investments needed in Railway Infrastructure during 2018-2030.
* 657 kilometers of Metro Rail network has become operational across the country.
* Outlay of Rs 10,000 crore for three years approved for Phase-II of FAME Scheme.
MEASURES TO DEEPEN BOND MARKETS
* Stock exchanges to be enabled to allow AA rated bonds as collaterals
* User-friendliness of trading platforms for corporate bonds to be reviewed
* Electronic fundraising platform under the regulatory ambit of SEBI
* Listing social enterprises and voluntary organizations.
* To raise capital as equity, debt or as units like a mutual fund.
* KYC norms for Foreign Portfolio Investors to be made more investor-friendly
* Insurance intermediaries to get 100 pc FDI
* FPIs to be permitted to subscribe to listed debt securities issued by ReITs and InvITs.
* Tax rate reduced to 25 per cent for companies with annual turnover up to Rs 400 crore
* Surcharge increased on individuals having taxable income from Rs 2 crore to Rs 5 crore and Rs 5 crore and above. <br>* Direct tax revenue increased by over 78 pc in past five years to Rs 11.37 lakh crore
* Those who don't have PAN can file tax returns using Aadhaar
* Pre-filling of Income-tax Returns for faster, more accurate tax returns
* Additional deduction up to Rs 1.5 lakhs for interest paid on loans borrowed up to March 31, 2020 for purchase of house valued up to Rs 45 lakh
* Overall benefit of around Rs 7 lakh over loan period of 15 years.
OTHER DIRECT TAX MEASURES
* Simplification of tax laws to reduce genuine hardships of taxpayers
* Higher tax threshold for launching prosecution for non-filing of returns
* Appropriate class of persons exempted from the anti-abuse provisions of Section 50CA and Section 56 of the Income Tax Act.
RELIEF FOR START-UPS
* Capital gains exemptions from sale of residential house for investment in start-ups extended till FY21.
* 'Angel tax' issue resolved- start-ups and investors filing requisite declarations and providing information in their returns not to be subjected to any kind of scrutiny in respect of valuations of share premiums.
* Funds raised by start-ups to not require scrutiny from Income Tax Department
* E-verification mechanism for establishing the identity of the investor and source of funds<br>* Special administrative arrangements for pending assessments and grievance redressal
* No inquiry in such cases by the Assessing Officer without obtaining approval of the supervisory officer.
* No scrutiny of valuation of shares issued to Category-II Alternative Investment Funds.
* Basic customs duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera, etc.
* Exemptions from custom duty on certain electronic items now manufactured in India withdrawn
* End use based exemptions on palm stearin, fatty oils withdrawn
* Exemptions to various kinds of papers withdrawn