#Budget2019 Live: Major Announcements, Latest Updates, Tax Changes & More
“The ambitious programme of Bharatmala will help develop roads and highways, while Sagarmala will enhance port connectivity”: FM Nirmala Sitharaman
It took us over 55 years to reach a $1 trillion dollar economy. But when the hearts are filled with hope, trust & aspiration, we in just 5 years, added $1 trillion.
Finance Minister Nirmala Sitharaman says that India Inc. is the nation’s job creators, our wealth creators.
It is therefore proposed to use Public-Private partnership to unleash faster development: FM
The Government plans to set up a payment platform for MSMEs that will be used to file and pay bills on the platform itself.
In 2015, our Government launched UDAY for financial and operational turnaround of discoms. the schemes and plans are being analyzed to bring about an improvement in it.
FM Nirmala Sitharaman says, “Government envisions using rivers for cargo transportation, which will also decongest roads and railways.”
Foreign portfolio investors are a key source of raising capital in the Indian economy, which is why it is crucial that they go through hassle-free experiences. For this, we are looking to make the KYC process friendly to the investors by making it more efficient.
Rs 50 lakh crore investment will be needed from 2020-2030 for Railway infrastructure. Additionally, a 657 km metro line has become operational in the country and a 300 km one is approved in 2018-19.
FM Nirmala Sitharaman hints at opening up FDI for insurance, media, and the aviation sector! Big changes coming up..
By 2022, power and LPG will be provided to all households, with the exception of those who don’t want the facilities.
FM Nirmala Sitharaman has declared that 1.25 lakh kilometers of roads will be improved, and has also proposed that by 2021, 1.95 crore houses will be granted under PMAY Grameen.
It is time to make commercial use of India’s major space power. For this, New Space India Limited, a public sector enterprise, has been incorporated to tap the benefits of R&D carried out by Isro. The company will spearhead the commercialization of various space products.
Under the Pradhan Mantri Karam Yogi Man Dhan Scheme, the pension benefit will be extended to around 3 crore retail traders and shopkeepers with an annual turnover of fewer than 1.5 crores
India will encourage foreign investors in the next 5 years. The government is mulling over organizing an annual global investors’ meet in India.
100% FDI will be permitted for insurance intermediary.
Global headwinds have not affected the sturdy FDI inflows of India, which has remained strong in spite of there being major global slippages. There has been a 6% YoY growth in foreign investment.
Over 81 lakh houses with an investment of 4.83 lakh crore sanctioned for urban cities. 26 lakh houses have been completed so far, and 24 lakh houses delivered to beneficiaries already.
For funding and coordinating research in India, we propose to establish a National Research Foundation.
“Government will bring national educational policy to transform India’s school higher education system to one of the world’s best education systems, with focus on research and innovation.”
Every household will get water by 2024, under the ‘Har Ghar Jal’ program. A new Integrated Water Ministry will be set up.
We plan to build India into a hub of higher education. For a programme of foreign exchange students, a ‘Study in India’ initiative will be developed.
A scheme to develop 75k skilled entrepreneurs in the agro-rural industry sector.
As much as 35 crores LED bulbs will be distributed as a part of the Ujjwala scheme, which will amount in a cost saving of Rs 18,341 crore annually.
FM Nirmala Sitharaman has said, “Under Pradhan Mantri Grameen Digital Saksharata Abhiyan, Bharat Net is targeting internet connectivity in local bodies in every panchayat in the country; this will be speeded under Universal Service Obligation Fund.”
Rapid urbanization in India is an opportunity. We must make cities better by using technology. PMAY-Urban: Over 81 lakh houses at a cost of Rs 4.83 lakh crore sanctioned.
In countries where India does not have diplomatic missions, we have decided to set up Indian embassies and high commissions. 18 new diplomatic missions have been approved in Africa.
To encourage and popularise sports at all levels, we will set up a National Sports Education Board, under Khelo India, which will help develop sportspersons.
Govt is developing 17 iconic tourism sites into world-class tourist destinations, a digital repository to document folk songs and other tribal anthropology.
Will enhance skills in new technologies like AI, IoT, BigData, 3D Printing, VirtualReality, and Robotics, says FM Nirmala Sitharaman.
FM Nirmala Sitharaman proposes issuing Aadhar for NRIs with Indian passport after their arrival in India without waiting for 180 days.
Public Sector Banks, PSBs will be provided Rs. 17,000 crore of capital for the purpose of credit boosting.
“To further encourage women entrepreneurship, Women SHG Interest Subvention Programme to be expanded to all districts in India.”
Every woman, who is a member of a SHG, verified and in possession of a Jan Dhan account, will be allowed an overdraft of Rs. 5,000. Under the MUDRA scheme, one woman in every SHG group will be granted a loan of Rs. 1 lakh.
The Govt sets an enhanced target of Rs 1.05 lakh crore disinvestment for FY 20.
Rs 100 lakh cr to be allocated for infrastructure over 5 years.
India’s sovereign external debt to GDP among the lowest globally at less than 5%.
A TV program will be launched, which will be dedicated to startups exclusively.
the lower tax rate of 25%, which is presently applicable to firms with an annual turnover of Rs. 250 crore, has been proposed to extend to those firms with an annual turnover of Rs. 400 crore. This will cover 99.3% of all companies.
Only those salaried persons whose annual taxable income increases Rs 5 lakh, will be required to pay income tax.
Govt to provide additional income tax deduction on interest paid on loans taken to purchase electric vehicles — Union FM
Funds raised by startups will not attract any scrutiny from the income tax department if adequate information and declarations about the source of funds are made.
Additional I-T deductions of Rs 1.5 lakh on interest paid for loans taken to purchase EVs.
An additional tax deduction of Rs. 1.5 lakh on the interest paid on housing loans for self-occupied house owners.
Interchangeability of PAN and Aadhaar card to be allowed for ease and convenience to taxpayers. Also, ITR can be filed without PAN only by quoting Aadhaar.
Govt. cut taxes on small traders, salary earners, senior citizens. Income taxed only when annual taxable income exceeds Rs 5 lakh.
“Propose to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore a year from a bank account to discourage cash business.”
“Pre-filled tax returns will be available to tax payers. It will have details of income, bank interest, and more, gathered from banks stock exchanges, mutual funds. It will reduce time taken to file taxes and increase accuracy in tax filing.”
Propose to enhance surcharge on individual income of Rs 2-5 crore by 3%, and over Rs 5 crore by 7%. FM Nirmala Sitharaman has opinionated that people with high incomes should contribute to the development of the nation.
Govt. move GST council to reduce GST rate on EVs from 12% to 5% Additional income tax cut of Rs 1.5 lakh on interest paid on loans for EVs. Benefit of Rs 2.5 lakh over loan period for those who take loans to buy EVs.
Businesses with an annual turnover of Rs 50 crore will have to give easy digital payment options to all customers; no charges and merchant discount rates will be imposed on customers and merchants.
The defense sector needs modernization. Import of defense equipment is being exempted from basic customs duty.
“Customs duty exempted on certain parts of electric vehicles, capital goods used to manufacture specific electronics.”