Minimum Government – Maximum Governance
Direct Tax
> No income tax, if the annual total income is less than 5 lakhs.
> Increase in surcharge for individuals having taxable income from Rs.2 crore to Rs.5 crore and above Rs.5 crore.
> Corporate tax @ 25% for companies with annual turnover upto Rs.400 crores.
> ‘Angle tax’ issue resolved – start-ups and investors filing declarations and providing information in their returns – not subjected to any scrutiny in respect of share premium valuation.
> Funds raised by start-ups will require no scrutiny.
> Capital gain exemption from sale of residential house for investment in start-ups extended till 31/03/2021.
> E-verification mechanism to establish identity of investor and source of funds.
> Additional deduction up to Rs.1.5 lakhs for interest paid on loans, where the purchase value is up to Rs.45 lakhs.
> Additional income tax deduction of Rs.1.5 lakhs on interest paid on borrowings for purchase of electric vehicle.
> Interchangeability of PAN and Aadhar – Income Tax returns can be filed using Aadhar instead of PAN
> Pre-fileed tax returns in respect of several incomes and deductions like salary, capital gains, tds etc. to be made available by collecting information from banks, stock exchanges etc.
> Faceless E-Assessment to be implemented in phased manner. Notices also to be issued electronically.
> TDS @ 2% to be deducted on cash withdrawal exceeding Rs.1 crore in a year from bank account for business payments.
> Business establishments with annual turnover more than Rs.50 crores shall offer low cost digital modes of payments for their customers and no charges or Merchant Discount Rates shall be imposed on customer and merchants.
> Higher tax threshold for launching prosecution for non-filing of returns
Indirect Taxes
> Certain parts of electric vehicles exempted from Customs duty.
> 5% Basic Customs Duty imposed on import of books.
> Import of Defence equipment exempted from Basic Customs Duty.
> Customs duty on gold and other precious metals increased from 10% to 12.5%.
> Excise Duty on petrol and diesel hiked by Rs.1 per litre.
> Legacy Dispute Resolution Scheme allowing quick closure of pending litigations from Pre-GST regime.
General Highlights in Budget 2019
> Pension benefits to 3 crore retail traders & shopkeepers with Annual turnover less than Rs.1.5 crore – Pradhan Mantri Karam Yogi Mandhan Scheme
> Platform for MSMEs to enable filing of bills and payment thereof.
> 2% Interest subvention to all GST registered MSMEs on all fresh or incremental loans.
> Payment ecosystem for transport, based on National Common Mobility Card(NCMC).
> 100% FDI for Insurance intermediaries.
> Local sourcing norms to be eased for FDI in Single Brand Retail Sector.
> Annual global investors’ meet to be organised in India using National Investment and Infrastructure Fund(NIIF) to get global players to come and invest in India.
> Social stock exchange, an electronic fund raising platform- proposed under the regulatory of SEBI for listing social enterprises and voluntary organisations.
> Public shareholding in listed companies proposed to increase from 25% to 35%.
> New Space India Limitedto be incorporated to tap the benefits of R&D carried by ISRO.
> Electricity and clean cooking facility to all willing rural families by 2022.
> Pradhan Mantri Awas Yojana– Housing for All by 2022.
> KYC norms for Foreign Portfolio Investors to be investor-friendly.
> Zero Budget Farming to be replicated across the nation.
> Har Ghar Jal– Piped water supply to all rural households by 2024.
> NRI Portfolio Investment Scheme Route proposed to be merged with Foreign Portfolio Investment Route.
> Changes to be made in National Education Policy to transform education system to Global Standards.
> Greater focus on research and innovation at school and higher education level.
> ‘Study in India’– Focus on bringing foreign students to study in India.
> A television channel exclusively for start-ups.
> Internet connectivity in local bodies in every Panchayat under BharatNet.
> Women SHG interest subvention program proposed to be expanded to all districts.
> Proposal to issue Aadhar Card to NRIs with Indian passport on their arrival without waiting for 180 days.
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