Insights of Union Budget 2019 – Key Highlights
[gdlr_accordion style=”style-1″ initial=”1″]
[gdlr_tab title=”Key Highlights from Our Experts”]
Closing Message from Our President, Mr. Mayur Batra:
“Indian Interim Budget 2019. Vision for the next 10 years, balancing act between farm distress, middle-class aspiration, salaried employees and growth with a decent outcome on fiscal deficit. Changes in assessment and get in procedures will lead to cut in inefficiency as well as red tape. More money in hands of consumers should lead to spur in demand, superb for the industry! Initiative on artificial intelligence, clean energy is the future. Impressive and positive for India. Seems like a win-win!”
Insights of Union Budget 2019
Key Economic Indicators- The Inflation rate brought down to 4.6 %.
- The fiscal deficit has been brought down to 3.4% in revised estimates 2018-19 and the same 3.4% for budget estimates 2019-20.
- Current account deficit likely to be only 2.5 % of GDP this year
- The Revenue deficit is 2.2% in Revised estimates 2018-19 and the same 2.2% for budget estimates 2019-20
- Defence budget to cross INR 3,00,000 crores for the first time in 2019-20.
- Capital Expenditure of INR 3,36,392 crores capital expenditure for Budget estimates 2019-20 as against INR 3,04,849 crores in Revised estimates 2018-19
- Re-capitalization has been done with an investment of INR 2.6 lakh crores to restore the health of public sector banks.
- The Fugitive Economic Offenders Act, 2018 will help confiscate and dispose off the assets of economic offenders who escape the jurisdiction of the laws in India.
- Mega Pension Yojana namely “Pradhan Mantri Shram-Yogi Maandhan” to be launched. The key features are as follows :
- For the unorganized sector workers with monthly income up to INR 15,000
- Assured monthly pension of INR 3,000 from the age of 60 years
- Worker joining at the age of 18 years & 29 years will have to contribute only INR 55 & INR 100 per month respectively till the age of 60 years.
- The government will deposit equal matching share.
- A National Programme on “Artificial Intelligence” has been envisaged.
- Scheme for MSME & Traders has been launched:
- Sanctioning loans up to INR 1 crore in 59 minutes
- 2% interest rebate for GST Registered SME units on an incremental loan of INR 1 Crore.
- Department of Industrial Policy and Promotion has been renamed as the Department for Promotion of Industries and Internal Trade Government for the promotion of internal trade including retail trading and welfare of traders, and their employees.
- The government will make 1 lakh villages into Digital Villages over the next five years.
- Continuous rationalization of GST rates on consumer products provided relief of around INR 80,000 crores annually to consumers.
- New GST returns filing procedure to be introduced allowing 90% of the GST taxpayers to file quarterly returns.
- Group of ministers to be appointed by GST council to examine and recommend for reduction of GST burden on home buyers.
- The average monthly GST collections for FY 2018-19 (till date) increased by 8.25% of the GST collections made last year i.e. INR 97,100 crores from INR 89,700 crores.
- Rationalization of customs duties in order to promote “Make in India” initiative.
- Digitalization of export/import transactions and use of RFID technology to improve export logistics.
- Duty-free imports and simplified procedures after the introduction of revised systems.
- Relief in tax slab rates: No tax for Individual taxpayers having taxable annual income up to Rs. 5 lakhs.
- Increase in Standard Deduction: Standard Deduction threshold for salaried persons has been proposed to increase from existing INR 40,000/- to INR 50,000/- per annum.
- Relief for a person having two self-occupied house property: Exemption from levy of income tax on notional rent on a second self-occupied house possessed by any person.
- Increase in TDS threshold u/s 194A: Enhancement of TDS threshold on interest earned on bank/post office deposits from INR 10,000/- to INR 40,000/- per annum.
- Increase in TDS threshold u/s 194I: Enhancement of TDS threshold for deduction of tax on rent u/s 194I from INR 1,80,000/- to INR 2,40,000/- per annum.
- Relief under Capital Gains Tax: Exemption of capital gains u/s 54 can now be availed for investment in two residential houses for a taxpayer having capital gains up to INR 2 crores vis-à-vis one residential house at present. This benefit can be availed once in a lifetime.
- Extension of time period u/s 80-IBA: Time limit for obtaining approval of housing projects under the Affordable Housing Scheme (House for All) has been extended for one more year up to 31st March 2020.
- Relief for Real Estate Sector: Extension of the time period of availing exemption from levy of tax on notional rent, on unsold inventories, from one year to two years, from the end of the year in which the project is completed.
- Improvise Social Infrastructure and Ease of living: Ensuring each family having a roof on its head and live in a healthy and clean environment;
- Digital Economy: Ensuring Digital India reaching every sector and corner of the country;
- Pollution free nation: Promotion of Electric Vehicles bringing down import dependence and creating renewable sources of energy;
- Expansion in Rural Industrialization: Through modern technologies and generating massive employment
- Clean River Mission: Ensure safe drinking water and efficient usage of water in agriculture using micro-irrigation techniques;
- Exploitation of Blue Economy: Coastline development and scaling up efforts in Sagarmala programme;
- Outer Skies: Ganganyaan Mission- India to become Launchpad for satellites and placing Indian astronaut in space by 2022
- Self Sufficient in Agri-produce: High farm production and productivity to be achieved through modern agri-practices making India self-sufficient in food needs thereby promoting exports;
- Healthy India: Improvement in health infrastructure and distress-free health care and a functional and comprehensive wellness system for all;
- Team India: Proactive, responsible and people friendly bureaucracy to achieve Vision 2030 and creating India Minimum Government Maximum Governance nation.
- Promoting affordable housing-section 80IA extended to 2020
- Promoting Cashless economy
- By increasing limit of interest from 10 K to 40 K will promote savings
- Interest threshold on bank deposits increased from 10k to 40k
- Seems to have so much for most of India including vision
- No tax on notional rent on second self-occupied house: FM
- Standard deduction for salaried revised to Rs 50,000 from Rs 40,000 per year
- Individual taxpayers having taxable income upto Rs. 5 lacs to get full tax rebate, effectively making it 6.5 lacs apart from other deductions
- FM announces tax exemption for income up to Rs 5 lakh per year
- This budget is pro farmers and lower class.
- Budget 2019: Rural roads see an allocation of Rs 19,000 crore under Gram Sadak Yojana
- Review of GST on home buyers may give boost to residential construction
- Anti-black money measures taken by the government in the last year have brought the undisclosed income of Rs 1.3 Lakh crore back in circulation
- Government is committed to eliminating the ills of black money
- India poised to become 5 trillion dollar economy in next 5 years: FM
- GST has been continuously reduced, resulting in relief of 80,000 crore rupees to consumers; most items of daily use for the poor and middle class are now in the 0%-5% tax bracket
- GST collections in January 2019 has crossed 1 lakh crore rupees
- Avg. Monthly tax collection in the current year under GST is Rs 97000 crore per month
- GST Council will take steps to reduce the tax burden on home buyers
- Returns will be processed within 24 hours of filing
- 99.54% income tax returns have been accepted without any scrutiny: FM Shri Piyush Goyal
- Over the next 2 yrs, direct tax assessments to be carried out online – Enhancing e-assessments, Without face to face interaction
- India became a member of the international solar alliance
- Defence Budget of INR 3 lacs crore for 19-20 for the first time.
- Mega pension scheme PM Shram Yogi Mandhan Yojna for unorganized sector employees having a salary of up to INR 15,000/-
- PM Kisan Yojna: for All vulnerable farmers having land up to 2 Hectare. They will get direct income support of INR 6000 per year from the central government. To be started from 1 st December 2018. New PM Kisan Samman Scheme positive for farm equipment sector.
- Rashtriya Gokul mission: Setting up of Kamadhenu Aayog for enhancement of cows and welfare of cows
- 2 % interest subvention to farmers affected by severe natural calamities
- Income tax relief on notional rent from unsold houses extended to 2 years: FM
- Capital gains exemption under Sec 54 to be available on 2 house properties
- Capital gains exemption under Sec 54 increased to Rs 2 cr: FM
- TDS limit hiked from Rs 10,000 to Rs 40,000 on Post-Office savings.
- Tax on notional rent on unsold inventory to be levied after 2 years: FM
- Capital gains exemption under section 54 increased to Rs 2 crore, to be available on 2 house properties
- No TDS on house rent of up to Rs 2.4 lakh per year: FM
- Budget 2019: Centre bought Rs 1.3 lakh crore under tax net after demonetisation
- No tax on notional rent on second self-occupied house: FM
- Govt announces tax exemption for income up to Rs 5 lk/yr: FM
- Govt confident of reaching Rs 80,000 cr divestment target: FM Goyal
- 28% increase in allocation for scheduled tribes in FY20: FM
- Rs 38,572 Cr allocated for National Education Mission: FM
- Expenditure target for FY20 at Rs 27.84 lakh cr: FM Goyal
- FM sets FY20 Fiscal Deficit target at 3.4%
- Number of tax filers increased from 3.79 cr in FY14 to 6.85 cr this yr: FM
- Electric vehicles a key part of govt’s vision for 2030: FM
- Need to focus on renewable energy to ensure energy security: FM
- Budget 2019: Govt announces mega pension scheme for unorganized sector, workers to get Rs 3,000 after retirement
- Govt to focus on building physical & social infra for ease of living
- India aspire to become $10 tn economy in next 8 years: FM
- India poised to become $5 tn economy in next 5 years: FM Goyal
- FM says Rs 1.30 lk cr undisclosed income brought under the tax net
- Average GST collection at Rs 97,100 crore per month: FM Goyal
- FM says 34 crore Jan Dhan Accounts have been opened so far
- Domestic air traffic doubled in the last 5 years
- FM says reducing tax for middle class always a priority
- Govt says reducing tax for middle class always a priority
- Budget 2019: Government broke the back of high inflation, says Piyush Goyal
- Access to capital to become easier for MSMEs
- FM says no human interference in tax verification & scrutiny in 2 yrs
- Slippage in fiscal deficit may delay any possible RBI rate cut in feb
- All tax returns will be processed in 24 hours going ahead
- FM announces all tax scurtiny to be done via Anonymous Digital Interface
- All tax scrutiny to be done via an anonymous digital interface: FM
- Direct tax collections at Rs 12 lk cr in FY19 from Rs 6.38 lk cr in 2014
- Single-window clearances for Indian filmmakers: FM
- Govt gives single-window clearances for Indian Filmmakers
- Govt announces Single-window clearances for Indian filmmakers
- Govt will set up 1 lakh digital villages in the next 5 years: FM
- Defence stocks rally after FM Goyal announces Rs 3 lakh crore Budget for FY20
- Govt will set up 1 lakh digital villages in the next 5 years
- Cost of data and voice calls in India is possibly the lowest in the world
- Indian Railways operating ratio seen at 95% for 2019-20 from 96.2% in 2018-19
- FM says monthly mobile data consumption has increased 50 times in last 5 years
- Railway segment: Allocation for northeastern states increased by 21%
- Budget 2019: PM Kisaan Samman Nidhi scheme to boost fertiliser, agri stocks
- Govt allocated Rs 64,587 crore for railways in FY20
- Indian Railways budget outlay Rs1,48,658 crore
- FM says looking to increase container cargo transport on Brahmaputra River
- Budget 2019 | Top announcements made by FM Piyush Goyal
- Domestic air traffic doubled in the last 5 years: FM
- Govt looking to increase container cargo transport on Brahmaputra River
- FM says will provide additional funds for defence, if needed
- Govt projects now have to source 25% of their requirements from SMEs: FM
- Finance Minister says defence budget for FY20 at Rs 3 lakh crore
- Rs 35,000 crore disbursed under one rank one pension since 2014: FM
- Defence budget for FY20 at Rs 3 lakh crore; Govt will provide additional funds for defence, if needed
- Defence Budget increased to Rs 3 lakh crore
- Govt looking to double farm income by declaring higher MSP last year
- Govt projects now have to source 25% of their requirements from SMEs
- 2% interest subvention on MSME loans with a ticket size of Rs 1 cr: FM
- Committee under NITI Aayog to be set up for denotified nomadic & semi-nomadic communities
- India’s youth have turned into job creators from job seekers. The country has become the second-largest hub for startups: Piyush Goyal
- Govt announces 8 cr free LPG connections under ‘Ujjwala’ Yojana: FM
- Union Budget 2019-20 LIVE: FM Piyush Goyal arrives at Finance Ministry; to present the Interim Budget at 11 am IST
- FM Piyush Goyal reaches Parliament ahead of Budget 2019