Budget 2019 Highlights
- No change in personal income tax rates.
- Additional Rs 1.5 lakh tax relief on home loans.
- Govt hike custom duty on fuel by 1 rupee, gold and precious items; Petrol & diesel to get costlier.
- Increase in surcharge on super rich: 3% surcharge on Rs 2 crore income; 7% on Rs 5 crore andabove.
- Annual turnover limit for 25% corporate tax raised to Rs 400 crore from Rs 250 crore.
- Taxpayers with annual turnover of less than Rs 5 crore to have to file only quarterly.
- Direct tax revenue has increased by 78%.
- Interchangeability of PAN and Aadhaar for ITR who don’t have PAN cards.
- Rental laws to be reformed. Modern tenancy law will be shared with states to promote house
For Rural India
- Gaon, Garib and Kisan are the focus of our government.
- New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by
- Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road lengthover the next 5 years.
- Govt will set up 100 new clusters for 50,000 artisans in FY-20.
- To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana.
- Every single rural family except those unwilling to have electricity by 2022.
- 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
Ease of living
- Rs 3,000 pension per month for informal sector workers.
- Aadhaar card under 180 days for NRIs on arrival in India.
- Govt to open embassies in countries where India doesn’t have a resident diplomatic mission as
- Nari tu Narayani: Women SHG Interest Subvention Programme to be expanded to all districts inIndia
- 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.
- Inter-operable One Nation One transport card: National transport card for universal travel whichcan used on various modes of transport (road, railways etc). The card can also be used as an 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.
Note: Govt will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs
- 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 Commission with focus on higher autonomy.
- New national education policy to propose changes in school, higher education.
- 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.
- On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt willprovide one-time 6-month credit guarantee.
- Propose to provide Rs 70,000 crore capital for PSU Banks.
- Regulation of HFCs (Housing Finance Corporations) to move to RBI from National Housing Bank.
To promote digital payments
- 2% TDS on withdrawals of Rs 1 crore in a year from bank accounts for business payments.
- No change on digital payment: MDR charges waived on cashless payment.
- 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 startups.
- Angel tax: Won’t require scrutiny from Income Tax department for startup.
- 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 MSMEs to be created.
- 17 iconic world-class tourist sites to be developed.
- Local sourcing norms will be relaxed for the Single brand retail sectorGovt 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-friendlyLong-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 oninfra sector.
- Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organizations.
- 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 issuesarising out of capping of International Securities Identification Number.
- To deepen corporate tri-party repo market in corporate debt securities.
- Plan to enable stockexchanges 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 REITs.
- Govt to modify present policy of retaining 51% stake in PSUs.
- Govt to continue with strategic divestment of select CPSEs.
- Divestment target of Rs 1.05 lakh crore for FY20
- FAME II scheme aims to encourage faster adoption of electric vehicles by the right incentives andcharging infrastructure
State of the economy
- Railways will require investment of Rs 50 lakh crore from 2018-30
- Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improvingour transport infrastructure.
- Gandhipedia’ is being developed to sensitize the youth about positive Gandhian values.
- The unambiguous mandate by the people in the recent election has set the ball rolling for the New
- NPAs recovery of Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the lastone year.
- Rashtriya Swachhta Kendra to be inaugurated at raj ghat on Oct 2, 2019.
- 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 tapbenefits ofISRO.
- To popularise sports at all levels, National Sports Education Board for development ofsportspersons to be set up under Khelo India.