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(A) New reforms in Union Budget 2019-20:

– Lower rate of 25% Corporate Tax extended to Companies with Annual Turnover upto INR 400 Crore from earlier cap of upto INR 250 crores, covering 99.3% of the Companies. A relief to corporate sector and one of advantage of running your business as Corporate Entity.

– To promote more and more digital payments, TDS of 2% on cash withdrawal exceeding INR 1crore in a year from a Bank Account.

– Proposal for issuing aadhar card to NRI’s with Indian Passport on their arrival without waiting for 180 days.

– Setting up of four labour codes proposed to streamline multiple labour laws and standardize the process of registration and filing of tax returns

– An electronic fund raising social stock exchanges platform to be launched where social enterprise raise capital by enlisting themselves.

(B) Small Houses self owned for middle income group and Road for Villagers:

  • PM Awas Yojana Gramin during 2019-20 to 2021-22 1.95 crores houses with all amenities proposed to be provided to eligible beneficiaries.
  • PM Gram Sadak Yojana focused on upgradation of 125000kms of road length over the next 5 years.

(C) PM Karam Yogi Maan Dhan Scheme

  • Pension to all traders & shopkeepers with annual turnover of less than INR 1.5 crores
  • Enrolment to be kept simple; requiring only Aadhar, Bank account & a self declaration.

(D) A support for Start-ups:

  • Capital gain exemptions from sale of residential house for investment in start-up extended till FY 2021.
  • To resolve “angel tax” issue, the start-ups will not be subjected to scrutiny in respect of valuation of share premium.
  • Relaxation of conditions for carry forward and set off of losses.
  • No inquiry in case of pending assessment & grievances redressed by the Assessing Officer itself.
  • Use of e-verification mechanism for establishing identity of the investor & sources of funds.

(E) For Benefit of Rural Women

  • Women Self Help Group (SHG)- Every Women having SHG Membership holding Jan Dhan Account, an overdraft of INR 5000/- will be allowed.
  • One women in every SHG will be eligible for a loan of INR 1,00,000 under PM Mudra Scheme.

(F) Goal of “HAR GHAR JAL”

  • Constitution of Jal Shakti Mantrayala.
  • To ensure “Har Ghar Jal” for all rural house by 2024 under Jal Jeevan Mission.
  • Focus on integrated demand and supply management Infrastructure development for rain water harvesting, groundwater recharge & household waste water management.

(G) Tax Compliance:

  • PAN & Aadhar interchangeably use for Income Tax returns
  • Additional Deduction upto INR 1.5 lakhs in Income tax on interest paid on electronic vehicles
  • Additional deductions upto INR 1.5 lakhs for interest paid on loans boerrowed up to 31st March, 2020 for purchase of house valued upto INR 45 lakhs.

(H) Boosting Entrepreneurship in Rural India:

  • Boost to agro-rural industries under SFURTI Scheme with focus on bamboo; honey & Khadi.
  • Pradhan Mantri Matsya Sampada Yojana launched to strength value chain including modernization, production, productivity, infrastructure & quality control system.

In nutshell, the Union budget 2019-20 focused on removing the word “POVERTY” from India by expanding resource base for poor villagers as well as Small Entrepreneurs and MSMEs.


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July 2024