How to make a budget – and stick to it
After the pre-election Interim Budget presented earlier this year, India’s first full-time woman Finance Minister Nirmala Sitharaman presented her maiden Budget today. While it was forward looking and she announced some long-term initiatives, there was not much change or relief for the salaried middle-class. Check out the Budget 2019 highlights:
Budget 2019 Highlights
Salaried Individuals
a) Personal income tax slabs remain unchanged
b) No tax applicable on taxable income up to ₹5 lakh, under Section 87A
c) Surcharge of 3% on income of ₹2 crore, and 7% for income exceeding ₹5 crore
d) Interchangeability of PAN and Aadhaar – can file IT return using Aadhaar if PAN not available
Real estate
a) For capital gains from sale of house for investment in startups, exemption extended to 31-Mar-21
b) Additional deduction of ₹1.5 lakh allowed for interest on loans up to 31-Mar-20 for house value up to ₹45 lakh
c) Reform measures to promote rental housing. Model Tenancy Law will be finalised
d) Proposal to change regulatory authority for housing finance companies from National Housing Board (NHB) to Reserve Bank of India (RBI)
Business and Industry
a) To resolve angel tax issue, no scrutiny on fund raising by startups and investors who file requisite declarations
b) TDS of 2% to be levied on cash withdrawals exceeding ₹1 crore in a year from bank accounts
c) Companies with turnover up to ₹400 crore to pay tax at reduced rate of 25%
d) No charges or MDR (Merchant Discount Rate) to be imposed on customers/merchants by businesses with annual turnover exceeding ₹50 crore
e) Proposal to increase minimum public shareholding in listed companies from 25% to 35%
f) New television channel for startups
Other Key Highlights of Budget 2019
– New Education Policy in the pipeline
– ‘Study in India’ program to attract foreign students
– Increase in excise duty and cess on petrol and diesel
– Customs duty exempted on certain parts of Electric Vehicles (EV)
– Import of defence equipment exempt from customs duty
– Customs duty on gold and other precious metals increased to 12.5%
– Tax deduction of ₹1.5 lakh on interest on loans for purchase of Electric Vehicles (EV)
– 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans
– Proposal to issue Aadhaar to NRIs with Indian Passports on arrival in India (180 day period earlier)
– Government to offer investment option in CPSE ETFs similar to Equity Linked Savings Scheme (ELSS)
– Proposal for a “Social Stock Exchange” under SEBI for listing of social enterprises & voluntary organisations
The entire text of the Budget 2019 speech is available here
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