Finance Minister presents Union Budget 2019-20
JNS: Union Finance Minister Nirmala Sitharaman presented the budget (2019-20) 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 Sitharaman.
Sitharaman proposed a Re 1 per litre cess on petrol and diesel prices, and hiked customs duty on gold and precious metals to 12.5 per cent from 10 per cent. She also said that Aadhaar card can be used in place of PAN for filing income taxes now. Also, from the current fiscal year, Rs 2-5 crore taxable income will see effective tax rate rising by 3 per cent and total effective tax rate will be higher by 7 per cent for those with a taxable income of over Rs 5 crore. She also said that the government has proposed a Rs 70,000 crore capital infusion into government-owned banks this year.
Minsiter also said, “The Government is working towards ‘Har Ghar Jal’ by 2024, 10,000 new farmer producer organisations will be set up, 9.6 crore toilets have been constructed since October 2014, New Space India Limited (NSIL) has been incorporated to tap the benefits of ISRO.” “Railway infrastructure would need an investment of Rs 50 lakh crore between 2018 and 2030. We are looking to implement one nation, one grid in the power sector,” she said.
Highlights of the Union Budget:
- PAN and Aadhaar will become interchangeable. 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 the ₹2-5 crore and ₹5 crore-and-above brackets 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 coin coming up.
- Excise duty on fuel hiked by ₹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 in 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 hopes to transform Indian education into one of the best in the world, with 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 worth of loans proposed to MSMEs.
- 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.