{"id":635,"date":"2019-07-06T01:42:16","date_gmt":"2019-07-06T01:42:16","guid":{"rendered":"https:\/\/etaxcorporate.com\/Blog\/?p=635"},"modified":"2019-07-06T01:42:19","modified_gmt":"2019-07-06T01:42:19","slug":"key-highlights-of-budget-2019-20","status":"publish","type":"post","link":"https:\/\/etaxcorporate.com\/Blog\/key-highlights-of-budget-2019-20\/","title":{"rendered":"Key Highlights of Budget 2019-20"},"content":{"rendered":"\n

Taxes:<\/strong><\/h2>\n\n\n\n
  1. No change in personal income tax rates<\/li>
  2. Custom duty hike on fuel by 1 rupee, gold and precious items; Petrol & diesel to get costlier.<\/li>
  3. 3% surcharge on an income of Rs 2 crore; 7% on Rs 5 crore and above.<\/li>
  4. Corporate tax with turnover of up to Rs 400 crore slashed to 25 per cent from a current rate of 30 per cent.<\/li>
  5. Interchangeability of PAN and Aadhaar for ITR for those who don\u2019t have PAN cards.<\/li>
  6. Advises GST Council to reduce tax rate on EVs from 12 per cent to 5 per cent.<\/li>
  7. Duty has been raised on: tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV
    camera.
    Affordable housing:<\/strong><\/li>
  8. Rental laws to be reformed. Modern tenancy laws will be shared with states to promote house renting.<\/li>
  9. Additional Rs 1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakh.
    To promote digital payments:<\/strong><\/li>
  10. 2% TDS on withdrawals of Rs 1 crore in a year from your bank account for business payments.<\/li>
  11. No charge on digital payments: MDR charges waived on cashless payment. <\/li>
  12. Aadhaar card for NRIs on arrival in India.<\/li>
  13. Rs 3,000 pension per month for workers from the informal sector.
    Transportation<\/li>
  14. Inter-operable One Nation One transport card: ATM-like Transport card for universal travel on various modes of transport (metro,
    road, railways etc).<\/li>
  15. Govt plans to create MRO (Manufacturing, Repair and Operate) industry.<\/li>
  16. PPP to be used to unleash faster development and the delivery of passenger freight services.<\/li>
  17. Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.<\/li>
  18. Government envisions using rivers for cargo transport to decongest roads and railways.
    Economy:<\/strong><\/li>
  19. Fiscal deficit in FY 19 at 3.3% of the GDP.<\/li>
  20. Govt will start raising part of borrowing in foreign currency.<\/li>
  21. Govt external debt to GDP is among the lowest in the world.
    Women empowerment:<\/strong><\/li>
  22. Nari tu Narayani: Women SHG Interest Subvention Programme to be expanded to all districts in India.<\/li>
  23. Rs 1 lakh loan to be provided for SHG women members under Mudra Scheme.<\/li>
  24. Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.
    Banking reform:<\/strong><\/li>
  25. On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt will provide one-time 6 month credit
    guarantee.<\/li>
  26. Propose to provide Rs 70,000 crore capital for PSU Banks.<\/li>
  27. Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank.
    Divestment:<\/strong><\/li>
  28. Govt to modify present policy of retaining 51% stake in PSUs.<\/li>
  29. Govt to continue with strategic divestment of select CPSEs.<\/li>
  30. Divestment target of Rs 1.05 lakh crore for FY 20.<\/li>
  31. Strategic disinvestment of Air India proposed to be re-initiated.
    Railways:<\/strong><\/li>
  32. Budgetary allocation of Rs 65,837 crore and the highest ever outlay for capital expenditure amounting to Rs 1.60 lakh crore for
    railways.<\/strong><\/li>
  33. A new PPP model will usher in the a new dawn of Indian railways.<\/li>
  34. Government to complete the dedicated freight corridor project by 2022.<\/li>
  35. Railways to be encouraged to invest more in suburban rail network via SPVs.<\/li>
  36. Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030.<\/li>
  37. Massive programme for modernisation of railway stations to be launched in 2019.
    MSME:<\/strong><\/li>
  38. Propose easing angel tax for startups.
    *Angel tax: Wont require scrutiny from I-T department for startup.<\/li>
  39. E-verification mechanism for establishing investor identity and source of funds for startups.<\/li>
  40. 2% interest subvention for GST-registered MSME on fresh or incremental loans.<\/li>
  41. \u2018Stand Up India\u2019 Scheme to continue till 2025.<\/li>
  42. New television channel for start-ups.<\/li>
  43. Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.<\/li>
  44. New payment platform for MSMEs to be created.
    Education<\/strong>:<\/li>
  45. Govt to launch \u2018Study in India\u2019 programme to attract foreign students in higher education.<\/li>
  46. Allocate Rs 400 crore for world-class higher education institutions in FY 20 .<\/li>
  47. To unveil a new education policy.<\/li>
  48. National research foundation to fund, coordinate and to promote research in the country.<\/li>
  49. New Higher Education Commission with focus on higher autonomy.<\/li>
  50. New national education policy to propose changes in school, higher education.<\/li>
  51. To make the Indian youth ready to take up jobs in foreign countries, more emphasis on new-age skills like Artificial Intelligence, Internet
    of Things, Big Data, etc.
    Tourism<\/strong>:
    *17 iconic world-class tourist sites to be developed.
    FDI:<\/li>
  52. Local sourcing norms will be relaxed for the single-brand retail sector.<\/li>
  53. Govt to open FDI in aviation, insurance, animation AVGC and media.
    Investment:<\/li>
  54. Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly.<\/li>
  55. Long-term bonds for market.<\/li>
  56. To allow FIIs & FPIs investment in debt securities issued by NBFCs.<\/li>
  57. Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector<\/li>
  58. Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organisations.<\/li>
  59. To merge NRI portfolio route with FPI route.
    *To hike statutory limit for foreign investment in some companies.<\/li>
  60. To set up a credit guarantee enhancement corporation.<\/li>
  61. Govt will take up measures to make RBI & SEBI depositories inter-operable.<\/li>
  62. SEBI to mull increasing minimum public shareholding to 35% from 25%.<\/li>
  63. User friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International
    Securities Identification Number.<\/li>
  64. To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as
    collateral.<\/li>
  65. Annual Global Investors\u2019 Meet for attracting global players to come and invest in India.
    *To allow FPIs to subscribe to listed debt papers of REITs.
    Auto sector:<\/strong><\/li>
  66. FAME II scheme aims to encourage faster adoption of electric vehicles through the right incentives and charging infrastructure.
    For Rural India:<\/strong><\/li>
  67. Gaon, Garib and Kisan are the focus of our government.<\/li>
  68. New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024.<\/li>
  69. Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.<\/li>
  70. Govt will set up 100 new clusters for 50,000 artisans in FY 20.<\/li>
  71. 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.
    Agriculture:<\/strong><\/li>
  72. Govt to promote innovative zero Budget farming.<\/li>
  73. 10,000 new farm produce organisations.<\/li>
  74. 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.
    Space<\/strong>:
    *India has emerged as a major space power. It is time to harness our ability commercially.<\/li>
  75. A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.
    Sports<\/strong>:<\/li>
  76. To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under \u2018Khelo India.\u2019
    State of the economy:<\/strong><\/li>
  77. Railways will require investment of Rs 50 lakh crore from 2018-30.<\/li>
  78. Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure.<\/li>
  79. \u2018Gandhipedia\u2019 is being developed to sensitize the youth about positive Gandhian values.<\/li>
  80. The unambiguous mandate by the people in the recent election has set the ball rolling for the New India.<\/li>
  81. NPAs recover Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year.<\/li>
  82. Rashtriya Swachhta Kendra to be inaugurated at Rajghat on October 2.<\/li>
  83. The people of India have validated their two goals for our country\u2019s future: National security and Economic growth.<\/li>
  84. \u2018 Yakeen ho to koi raasta niklata hai, hawa ki awt(protection) bhi le kar chiragh jalta hai\u2019<\/li>
  85. It took us over 55 years to reach $1 trillion dollar economy, but we added $1 trillion in just 5 years.<\/li>
  86. We can very well reach $5 trillion in the next few years.<\/li>
  87. Last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be
    Mazbooth Desh Ke Liye Mazbooth Nagarik.<\/li>
  88. Government lays out 10-point vision for the New India.<\/li>
  89. India will become $3 trillion economy this year. We need to continue to take many structural reforms to achieve $5 trillion economic
    goal.
    *Connectivity is the lifeline of the economy.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"

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