Highlights of Budget for the Year 2019-2020 by
BJP Government 2.0
The Finance Minister Smt. Nirmala Sitharaman
unveiled a budget aimed at boosting infrastructure and foreign
investment, the first since the Bharatiya Janata Party-led by Prime Minister
Shri Narendra Modi returned for a second term in power. The budget has been
presented with a 10-year vision in mind. The startups are being given a whole
set of tax benefits. Here are the highlights of the Budget for the year
2019-2020 :
Direct
Taxation
1. 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.
2. Interchangeability
of PAN and Aadhar for ease and convenience of taxpayers. The income
Tax return can be filed using Aadhar Number!!
3. To
discourage cash payments TDS@2% on withdrawals exceeding 1Cr per annum from a
bank account
4. Surcharge
for individuals having taxable income from Rs 2 crores to Rs 5 crores increased
to 18% from 15%
5. Surcharge
for individuals having taxable income from Rs 5 crores to Rs 10 crores
increased to 22% from 15% – FY 2019-20
6. Proposal
to give relief in levy of securities transaction tax
7. Corporate
tax worth 25% that is applicable to companies with an annual turnover Rs 250
crore will be applicable to the ones with an annual turnover of Rs 400 crore
8. 35AD
extended to Li-On battery, Semi-Conductor, Laptops, Fabrication & Photo
Volic
Infrastructure
1. Focus
on investment in infrastructure, national highways and aviation sectors
2. The
second phase of Bharat Mala to develop state highways
3. A
comprehensive restructuring of national highways will be taken up
Education
1. National
education policy to propose major changes in both secondary and higher
education
2. Swayam
Initiative – Digital education to be promoted
3. Greater
focus on research and development – National Research Foundation to fund and
promote research – the pooling of research grants from various ministries and
disbursing them, preventing duplication of research projects
4. For the
Youth – New national educational policy to transform the Indian education
system
Startup
Development
1. Government
to introduce a host of exclusive programs for startups on DD News
Household
1. Provision
of housing, electricity, clean cooking facility, safe and adequate drinking
water to all in rural India
2. Encouragement
of rainwater harvesting, groundwater recharge, and management of household
wastewater for reuse in agriculture
3. Har
Ghar Jal – to all rural household by 2024
4. 7
crore LPG connections delivered to rural households
Pension
1. Proposed pension benefit to 3 crore retail traders and shopkeepers
whose annual turnover is up to Rs 1.5 crore
MSME
1. 350 crore
rupees allocated for 2% interest subvention for all GST-registered MSMEs on
fresh or incremental loans
2. MSME:
Large-scale extensive reforms planned, government to create a platform for MSME
payments
3. MSME to get
loans up to 1 crore within 59 minutes. Loans worth Rs. 350 crore already
disburse
Women
Empowerment
1. Committee
to be formed with Public and Private stakeholders for gender equality: FM
2. Every
SHG Women having Jan Dhan Account – Rs. 5,000/- overdraft allowed: FM
3. Loan
up to 1 lakh under Mudra Scheme for Women entrepreneurs: FM
NRI
1. Proposal
for Issuance of Aadhar Card on arrival for NRIs with Indian Passports: FM
2. Aadhaar
card for NRI’s post-arrival in India
3. To
increase NRI investment in Indian capital market – NRI portfolio
scheme route and FPI route should merge
Railway
Budget
1. Railway
infra would need an investment of 50 lakh crores between 2018 and 2030;
2. PPP to
be used to unleash faster development and delivery of passenger freight
services
3. Railway
Station Modernisation will be launched this year.
4. Indian
Railways to be encouraged to invest more in urban and suburban regions
5. 657KM of
Metro Rail operational in the country.
Banking and Financial Sector
1. Reforms will
be taken to strengthen governance in Public Sector banks
2. NPAs of
commercial banks reduced by over 1 Lack Crores over last year
3. Record
Recovery of over 4 Lack Crore with IBS
4. NPAs of
commercial banks reduced by over 1 lakh crore over last year
5. After
Consolidation of Public Sector Banks, now 70,000 Crore of Capital boost for
credit improvement
6. Government
has smoothly carried out consolidation, reducing the number of PSBs by 8
7. NBFCs – that
are fundamentally sound, will get funding from Government to a total of 1lakh
crore during the current financial year
8. RBI has
limited Regulatory Authorities, Now the Regulatory Authorities of RBI over NBFC
will be placed
9. Proposals
for strengthening the regulatory authority of RBI over NBFCs – Debenture
Redemption Reserve to be maintained
10. Proposal to return regulatory
authority from NHB to RBI.
Electric Vehicles
1. Lower GST
rate from 12% to 5% on Electric vehicle and Additional Income Tax Deduction of
2.5 Lakh on Interest paid on loan taken to purchase an electric vehicle
2. To make
electric vehicles affordable, additional IT deduction on 1.5 lakh on interest
paid on loan taken to purchase electric vehicles
Technology
1. Solar
storage batteries and chargers included in 35AD deduction: FM
2. Program of
mass scaling of LED Bulbs – Approx. 35 Crores of LED bulbs distribute
3. Machines and
robots to be deployed for scavenging
4. Focus on VR,
AI, Robotics training to youth to align India with the World.
