- No change in personal income tax rates
- Inter change ability of PAN and Aadhar for ease and convenience of taxpayers! Income Tax return can be filed using Aadhar Number!!
- Petrol, diesel to get pricier: Govt hike custom duty by Rs. 1 on fuel, Duty hike on gold and precious items also.
- Interest deduction on housing loan under Section 80EE increased by 1.5 lakhs 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.
- To discourage cash payments TDS@2% on withdrawals exceeding 1Cr per annum from a bank account
- Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 18% from 15%
- Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 22% from 15% – FY 2019-20
- Proposal to give relief in levy of securities transaction tax
- 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
- 35AD extended to Li-On battery, Semi-Conductor, Laptops, Fabrication & Photo Volic
- Rental laws to be reformed. Modern tenancy law will be shared with states to promote house renting.
- To promote digital payments, 2% TDS on withdrawals of Rs 1 crore in a year from bank accounts for business payments
- MDR charges waived on cashless payment
- Inter-operable One Nation One transport card for universal travel which can used on various modes of transport (road, railways etc). The card can also be used as a ATM card for withdrawing money.
- Govt plans to create MRO (Manufacturing, Repair and Operate) industry.
- PPP to be used to unleash faster development and the delivery of passenger freight services.
- Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.
- Government envisions using rivers for cargo transport, it will also decongest roads and railways.
- Fiscal deficit in FY19 at 3.3% of the GDP
- Govt will start raising part of borrowing in foreign currency
- Govt external debt to GDP is among the lowest in the world.
- Women SHG Interest Subvention Programme to be expanded to all districts in India Rs 1 lakh loan to be provided for SHG women members Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility
- Reforms will be taken to strengthen governance in Public Sector banks
- NPAs of commercial banks reduced by over 1 lac crores over last year
- Record Recovery of over 4lac crore with IBS
- 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
- 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
- Proposals for strengthening the regulatory authority of RBI over NBFCs – Debenture Redemption Reserve to be maintained
- Proposal to return regulatory authority from NHB to RBI!
- A new PPP model will usher the new dawn of Indian railway.
- Railways to be encouraged to invest more in suburban rail network via SPVs
- Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030.
- Propose easing angel tax for start-ups
- Angel tax: Won’t require scrutiny from Income Tax department for start-up
- 2% interest subvention for GST-registered MSME on fresh or incremental loans.
- ‘Stand Up India’ Scheme to continue till 2025
- Propose to commence television channel for start-ups
- To extend pension benefit to retail traders with annual turnover less than Rs 1.5 crore
- New payment platform for MSM to be created.
- Govt to launch ‘Study in India’ programme to attract foreign students in higher education
- Allocate Rs 400 crore for world-class higher education institutions in FY20 .
- To unveil new education policy.
- National research foundation to fund, coordinate and to promote research in the country.
- New Higher Education Commison with focus on higher autonomy
- New national education policy to propose changes in school, higher education
- 17 iconic world-class tourist sites to be developed
- Local sourcing norms will be relaxed for the Single brand retail sector to bring FDI.
- Govt of open FDI in aviation, insurance, animation AVGC and media
- Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly
- Long-term bonds for market
- To allow FIIs & FPIs investment in debt securities issued by NBFCs
- Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector
- Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organisations
- To merge NRI portfolio route with FPI route
- To hike statutory limit for foreign investment in some companies
- To set up a credit guarantee enhancement corporation
- Govt will take up measures to make RBI & SEBI depositories inter-operable
- SEBI to mull increasing minimum public shareholding to 35% from 25%
- User friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Number
- To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as collaterals.
- Annual Global Investors’ Meet for attracting global players to come and invest in India.
- To allow FPIs to subscribe to listed debt papers of REIT
- FAME II scheme aims to encourage faster adoption of electric vehicles by the right incentives and charging infrastructure
- 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 FY20
- To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana
- Govt to promote innovative 0 Budget farming.
- 10,000 new farmer producer organisations.
- 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
Space: - India has emerged as a major space power. It is time to harness our ability commercially.
- A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO
- To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under Khelo India.
Budget 2019 Highlights
