The Union Budget 2019 was announced on July 5, 2019, under the PM Narendra Modi-led government. Finance Minister Nirmala Sitharaman presented the budget 2019 in Lok Sabha, paving the way for numerous changes and initiatives.
Highlights Of Budget 2019
Here are some of the most important highlights of the India Union Budget 2019:
- PAN and Aadhaar are set to become interchangeable. Aadhaar number can be used to file IT Returns soon.
- INR 5 lakh minimum limit announced for taxpayers. Given rising income levels, those in the INR 2-5 crore and INR 5 crore-and-above brackets will see an 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 INR 1.5 lakh on interest on loans taken to purchase electric vehicles.
- Additional deduction of INR 1.5 lakh on loans up to March 31, 2020, for buying affordable houses, giving INR 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.
INR 20 coin coming up.
- Excise duty on fuel hiked.
- To resolve the angel tax issue, startups will not be subject to any scrutiny concerning valuation. Funds raised by startups will not require any inspection by the I-T department.
- TDS of 2% on cash withdrawals exceeding INR 1 crore in a year from bank accounts, to discourage business payments in cash.
- Period of exemption for capital gains arising from the sale of a house for investment in startups to be extended to March 31, 2021.
- INR 70,000 crore in recapitalisation for public sector banks.
- INR 1.05 lakh crore disinvestment target for the year.
- TV channel to be launched for promoting startups and to help to matchmake for funds.
- The new national educational policy hopes to transform Indian education into one of the best in the world, with a focus on bringing in international students.
- INR 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 minimal 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.
- INR 1 crores worth of loans proposed to MSMEs. The Government will extend pension benefits to 3 crore retail traders and shopkeepers who have a revenue of less than INR 1.5 crore.
- 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.
Vision Of The Budget
The Vision on which the Union budget 2019 was based is as follows:
- Building physical and social infrastructure;
- Digital India reaching every sector of the economy;
- Pollution free India with green Mother Earth and Blue Skies;
- Make in India with particular emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices;
- Water, water management, clean Rivers;
- Blue Economy;
- Space programmes, Gaganyan, Chandrayan and Satellite programmes;
- Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables;
- Healthy society – Ayushman Bharat, well-nourished women & children. Safety of citizens;
- Team India with Jan Bhagidari. Minimum Government Maximum Governance.
The implementation of the new budget will be an exciting watch. As the sixth-largest economy in the world, India is set to become a $3 trillion economy this year. Budget 2019 has been laid out with a vision to achieving this goal and move closer to becoming the largest economy one day.
Parts of this news were sourced from The Hindu