Budget 2019 Highlights: Union Budget Highlights by Nirmala Sitharaman

1. Direct Taxation – Budget 2019 Highlights

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.

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Interchangeability of PAN and Aadhar for ease and convenience of taxpayers! Income Tax return can be filed using Aadhar Number!!

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To discourage cash payments TDS@2% on withdrawals exceeding 1Cr per annum from a bank account

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Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 18% from 15%

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Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 22% from 15% – FY 2019-20

Proposal to give relief in levy of securities transaction tax

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Corporate tax worth 25% that is applicable to companies with an annual turn over Rs 250 crore will be applicable to the ones with an annual turnover of Rs 400 crore

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35AD extended to Li-On battery, Semi-Conductor, Laptops, Fabrication & Photo Volic

2. Infrastructure – Budget 2019 Highlights

Focus on investment in infrastructure, national highways and aviation sectors

The second phase of Bharat Mala to develop state highways

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A comprehensive restructuring of national highways will be taken up

3. Education – Budget 2019 Highlights

National education policy to propose major changes in both secondary and higher education

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Swayam Initiative – Digital education to be promoted

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Greater focus on research and development – National Research Foundation to fund and promote research – pooling of research grants from various ministries and disbursing them, preventing duplication of research projects

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For the Youth – New national educational policy to transform the Indian education system

4. Startup Development – Budget 2019 Highlights

Government to introduce a host of exclusive programs for startups on DD News

5. Household – Budget 2019 Highlights

Provision of housing, electricity, clean cooking facility, safe and adequate drinking water to all in rural India

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Encouragement of rainwater harvesting, groundwater recharge, and management of household wastewater for reuse in agriculture Har Ghar Jal – to all rural household by 2024

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7 crore LPG connections delivered to rural households

6. Pension – Budget 2019 Highlights

1.Proposed pension benefit to 3 crore retail traders and shopkeepers whose annual turnover is up to Rs 1.5 crore

7. MSME- Budget 2019 Highlights

350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans

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MSME: Large-scale extensive reforms planned, government to create a platform for MSME payments

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MSME to get loans up to 1 crore within 59 minutes. Loans worth Rs. 350 crore already disburse

8. Women Empowerment- Budget 2019 Highlights

Committee to be formed with Public and Private stakeholders for gender equality: FM

Every SHG Women having Jan Dhan Account – Rs. 5,000/- overdraft allowed: FM

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Loan up to 1 lakh under Mudra Scheme for Women entrepreneurs: FM

9. NRI- Budget 2019 Highlights

Proposal for Issuance of Aadhar Card on arrival for NRIs with Indian Passports: FM

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Aadhaar card for NRI’s post arrival in India

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To increase NRI investment in Indian capital market – NRI portfolio scheme route and FPI route should merge

10. Budget – Railway Budget 2019 Highlights

Railway infra would need an investment of 50 lakh crores between 2018 and 2030;

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PPP to be used to unleash faster development and delivery of passenger freight services

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Railway Station Modernisation will be launched this year.

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Indian Railways to be encouraged to invest more in urban and suburban regions 657KM of Metro Rail operational in the country.

11. Banking and Financial Sector – Budget 2019 Highlights

Reforms will be taken to strengthen governance in Public Sector banks

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NPAs of commercial banks reduced by over 1 lach crores over last year

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Record Recovery of over 4lac crore with IBS

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NPAs of commercial banks reduced by over 1 lakh crore over last year

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After Consolidation of Public Sector Banks, now 70,000 Crore of Capital boost for credit improvement

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Government has smoothly carried out consolidation, reducing the number of PSBs by 8

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NBFCs – that are fundamentally sound, will get fundings from govt to a total of 1lakh crore during the current financial year

RBI has limited regulatory Authorities, Now the Regulatory Authorities of RBI over NBFC will be placed

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Proposals for strengthening the regulatory authority of RBI over NBFCs – Debenture Redemption Reserve to be maintained

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Proposal to return regulatory authority from NHB to RBI!

12. Electric Vehicles – Budget 2019 Highlights

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

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To make electric vehicles affordable, additional IT deduction on 1.5 lakh on interest paid on loan taken to purchase electric vehicles

13. Technology – Budget 2019 Highlights

Solar storage batteries and chargers included in 35AD deduction: FM

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Program of mass scaling of LED Bulbs – Approx. 35 Crores of LED bulbs distribute Machines and robots to be deployed for scavenging

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Focus on VR, AI, Robotics training to youth to align India with the World