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Income Tax Budget 2019: Major Highlights & Key Takeaways

Income Tax Budget 2019: Major Highlights & Key Takeaways

Finance minister Nirmala Sitharaman presented the Union Budget 2019 in the Parliament today. A look at major highlights and key takeaways.

Finance minister Nirmala Sitharaman presented the Union Budget 2019 in the Parliament today. She is the first full-time woman finance minister who has presented the union budget.

The eyes of people seemed glued to the television as they seemed eager to know what new surprises the budget will have for them this year.

This is the second budget that has been presented this year. Earlier Piyush Goyal, who is the Union Minister, tabled the interim budget. This is the 89th budget, including the interim one.

In this budget, Nirmala Sitharaman presented in the parliament the Economic Survey. She said that the economy of India has risen from $1.85 trillion to $2.7 trillion and the centre has made the target of taking this to $5 trillion by the financial year 2025.

She proposed a 3% increase of tax for the individual having an annual income between Rs 2 crore and Rs 5 crore and 7% for incomes above Rs 5 crore.

She announced sops for MSMEs and said that 350 crores would be allocated for the development of each sector. She also brought happiness on the face of the elderly people by announcing that the pension benefit will extend to 3 crore retail traders under PM’s Karam Yogi Maan Dhan Yojna.

A new commercial arm NSIL establishment was also proposed by the finance minister to increase the power of India in technology and space.

She said that the government was planning to increase FDI in the sector of aviation and appreciated that the schemes such as Sagarmala, Bharatmala, and Udan are briding the rural and urban divide improving the transport infrastructure.

She made another major announcement that the highways will be restructured and the movement of cargo will soon take place through river Ganga.

Major highlights

  • The centre has proposed to issue Aadhar card to NRIs having the Indian passports without the wait of 180 days on their arrival.
  • Social stock exchange, i.e. an electronic fundraising platform, will be set up to list voluntary organizations and social enterprises for the social welfare objective.
  • By 2019-20 100 new clusters will be set up in #SFURTI. This will enable 50,000 artisans in joining the value chain of the economy.
  • All weather connectivity of road will be provided to more than 97% of feasible habitations.
  • Every rural family except those who don’t wish to take the connection will have clean cooking facility and electricity by 2022.
  • 125,000 km of roads will be upgraded by the next five years.
  • For 2% investment subvention 350 crore rupees will be allocated
  • Open defamation will become free by October 2, 2019.
  • Customs duty on gold and other precious metals has been proposed from 10% to 12.5%
  • Special additional duty and infrastructure cess on petrol and diesel to increase by Rs 2/litre
  • The highest income people will pay a surcharge of 3% over Rs 2-3 crore and those earning 5 crores will pay 12% surcharge.

Employment

  • In 2019-20 80 livelihood business incubator will be set up under ASPIRE
  • It has been proposed to start a television program exclusively for startups on DD National.
  • Increased focus will be given to skill sets required by the youth to improve job opportunities

Women

  • Women self-help groups Interest Subvention programme will expand all across India.
  • A woman SHG member having Jan Dhan account will be given an overdraft of 5,000.
  • One woman out of every SHG will become eligible for 1 lakh loan under MUDRA scheme.

Banks

  • Public sector banks will be provided Rs 70,000 crore to improve credit
  • A proposal has also been made to strengthen the regulatory authority of RBI over NBFC.
  • PSBs will become technologically advanced to enable customers of one PSB to access service across all of them.
  • The regulation authority will return to RBI from National Housing Bank over housing.

Railway

  • A massive programme will be launched for railway station modernization in 2019.
  • More investment will be made on suburban railways through special purpose vehicles. More public partner initiative will be encouraged in the railway sector.

Electric vehicle

  • GST rate will reduce on electric vehicle from 12% to 5%.
  • Customs duty will be expected to promote e-mobility on a certain part of electric vehicles

Tax

  • Direct tax collection will increase by 78%.
  • Companies having an annual turnover of 400 crores will have to pay 25% corporate tax.
  • For affordable housing, 1.5 lakh rupees deduction will occur on interest paid on loans up to 31 March 2020 for purchase of houses up to 45 lakhs.
  • Faceless income tax assessment will be launched this year in a phased manner.

Custom duty

  • Import of defence equipment that is not manufactured in India will get exempted from customs duty.
  • 5% custom duty will be paid on imported books to promote the printing industry.

Swachh Bharat Mission

  • Swachh Bharat mission will expand to undertake solid waste management across every village.
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