Union Budget 2019-2020 -Key Highlights

1. DIRECT TAX

• No change in income tax slab rates for this year.
• Deduction exceeded from ₹2,00,000/- to ₹3,50,000/- for the home loan upto ₹45,00,000/-.
• Surcharge in case of individual: –

• Tax rates in case of companies will be 25%, where threshold limit is ₹400 Cr. It is important to note that earlier the authorised authority will consider the threshold limit to ₹250 Cr. Now the limit amended to ₹400 Cr. On 5^th July, 2019 in the newly discussed union budget 2019-2020.
• Cash withdrawal exceeding ₹1Cr from a bank account in a year for the business purpose-
• STT – Restricted to the difference between settlement & strike price of options.
• Aadhar Number is mandatory for filling income tax return.
• It is important to note that now the taxpayers can file return simply just by Aadhar number who hasn’t yet applied for pan card number.
• In the interim budget, it has been proposed that if a resident individual having income of upto ₹5Lakhs, No tax will be paid in such a case.
• Relaxed norms for set off and carried forward of losses in case of Start-ups have been
• Deposit taking and systematically important non-deposit taking NBFCs can now pay tax in the year they receive interest for certain bad & doubtful debts.

2. INDIRECT TAX

• Free Accounting Software for GST.
• Faceless assessment in electronic mode without human intervention has been launched this year.
• Reduction in tax rates on EVs from 12% to 5%.
• Duty has been raised on : files, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital & video recorder & CCTV camera.
• Single Monthly GST Return.
• Quarterly filling GST Return for turnover <₹5 Cr.
• Implementation of fully automated GST Refund.
• Multiple tax ledger to be replaced by one.
• Invoice details to be captured in a central system w.e.f, 2020. (E-invoicing)
• E-way bill to be replaced by E-invoicing.
• Reduction in compliance burden.
• Legacy Dispute resolution Scheme for Pre GST cases.
• Propose easing angel tax for start-ups 2% interest subvention for GST-registered MSME on fresh or incremental loans.
• Sabka Vishwas Legacy Dispute Resolution Scheme proposed for quick closure of service tax and excise related litigations.

3. CUSTOM DUTY

• BCD exempted on defence equipment.
• 5% Custom duty on imported books.
• 10% to 12.5% rates proposed Custom duty for gold & other precious metals.
• Cess on Fuel hiked by ₹1.

4. BANKING & IBC

• Record recovery of ₹4 Lakhs Cr. In 4 yrs due to IBC & other measures.
• Provision coverage ratio of banks highest in 7 yrs.
• Proposed further recapitalisation of PSBs :₹70,000 Cr.
• For the purpose of average recovery under various recovery regimes(i.e., Realisation by financial creditors) considered as per FY 2017-19 figures increased to 43% from 23%.

5. LABOUR RULES

• ₹ 3,000 p.m. of pensionary benefits for the workers from the informal sector.

6. GENERAL

• Loan for ₹ 1 Lakhs to be provided for SHG women members.
• Every verified women SHG member having a Jan Dhan account can avail ₹ 5000 overdraft facility.
• Uploaded information related to public or community toilets on the google maps.
• Pensionary benefits to around 3 cr retail traders & small shopkeepers with annual turnover less than ₹1.5Cr.
• A new programme “study in India” going to start up with a purpose to bring foreign students in India with an aim to getting higher education qualifications.

There are several other points too but in above we have highlighted certain crucial points are discussed as above. If having any suggestion “Raise your suggestion ,Raise your voice”.