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Live: Highlights of Union Budget 2019

In recent developments, the Finance Minister of India, Nirmala Sitharaman announced the Union Budget of for the year 2019.Finance Minister announces the much-awaited budget for the financial year 2019-2020 in Parliament today. Watch below Union Budget 2019 Live.

A team of Enterslice professionals consisting of Best in Industry CA, CS, and Lawyers are providing you the highlights and comprehensive analysis of the Union Budget 2019.

Vision Points of the Union Budget 2019

The budget was delivered under the purview of Ten vision points.Ten vision points as quoted by the First full-time Finance Minister of the country

1. Building physical and social infrastructure;
2. Digital India reaching every sector of the economy;
3. Pollution free India with green Mother Earth and Blue Skies;
4. Make in India with particular emphasis on MSMEs, Start-ups,
   defence manufacturing, automobiles, electronics, fabs and
   batteries, and medical devices;
5. Water, water management, clean Rivers;
6. Blue Economy;
7. Space programmes, Gaganyan, Chandrayan and Satellite
   programmes;
8. Self-sufficiency and export of food-grains, pulses, oilseeds, fruits
   and vegetables;
   
9. Healthy society – Ayushman Bharat, well-nourished women &
   children. Safety of citizens;
10. Team India with Jan Bhagidari. Minimum Government Maximum
    Governance.

Key Insights

The Main Insights of the budget are as follows;

For Economy

• A 3 Trillion Economy- The government aims for India to become a 3 Trillion Economy by the end of the current financial year.
• Fiscal deficit in FY 19 at 3.3% of the GDP.

For Taxpayers

GST

• Taxpayers with an annual turnover of less than INR 5 Crores can now file quarterly GST returns.
• A completely automated GST refund module will be implemented soon to streamline GST refunds.
• An electronic invoice system soon to be introduced will further streamline GST compliance.

 

For other Taxpayers

• Raise in Annual turnover limit– The annual turnover limit for 25% Corporate tax raised from Rs 250 crore to Rs 400 crore.
• Additional Rs 1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakh.
• Tax holiday for developers for profits on affordable housing development projects.
• No change in personal income tax rates.
• Increase in surcharge on super rich: 3% surcharge for Rs 2 crore income; 7% on Rs 5 crore and above.
• Additional Rs 1.5 lakh deduction on home loans.
• Interchangeability of PAN and Aadhaar for ITR who don’t have PAN cards.
• Encouragement to clean transportation-Custom duty Exemption for E-vehicles parts.
• Sabka Vishwas Legacy Dispute Resolution Scheme – Aims to quick closure of service tax and excise related litigations.

Infrastructure

• Bharat Mala 2.0 to focus on states to build their road networks.
• India’s first endogenously developed payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards.
• Sagarmala would enhance port connectivity, modernization and port-linked industrialization.
• Development of Inland waterways for transportation and shipping.
• Railway infra would need an investment of 50 trillion between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight services.
• 1.25 lakh km roads will be upgraded at a cost of Rs. 80,000 crore
• 17 iconic world-class tourist sites to be developed.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY)- Aims to establish framework for fisheries management.

Social Welfare & Women Empowerment

• One woman in every self-help group eligible for loan of Rs. 1 lakh under Mudra scheme.
• Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.

Finance,Investments & FDI

• 100 per cent FDI will be permitted for insurance intermediaries.
• Cash withdrawals over Rs. 1 crore a year to be taxed at 2 per cent.
• Local sourcing norms will be relaxed for the single-brand retail sector.
• Govt to open FDI in aviation, insurance, animation AVGC and media.
• Statutory limit for FPI investment in a company increased.
• Deposit taking and systemically important non-deposit taking NBFCs can now pay tax in the year they receive interest for certain bad or doubtful debts.

• 2% TDS on cash withdrawal exceeding ₹1 crore in a year from a bank account to promote less cash economy.

Business & Entrepreneurship

For MSME and Business

• 2% interest subvention for GST-registered MSME on fresh or incremental loans.
• ‘Stand Up India‘ Scheme to continue till 2025.
• Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.
• New payment platform for MSMEs to be created.
• Electronic Fundraising Platform, a social stock exchange, to be set up to list social enterprises and voluntary organizations working for social welfare objectives.
• For ease of access to credit for MSMEs,loans upto 1 crore for MSMEs within 59 minutes. Rs 350 crore has been allocated for FY 2019-20 for 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans.
• Pradhan Mantri Karam Yogi Maandhan Scheme- Pension scheme for traders & small shopkeepers whose annual turnover is less than 1.5 crore.
• Pradhan Mantri Shram Yogi Maandhan– For pension to workers of unorganised and informal sectors.

For Startups

• TV programme for start-ups under Doordarshan, designed and run by start-ups themselves.
• Angel investors and start-ups who file tax returns won’t be subjected to scrutiny.
• E-verification will resolve the issue of identifying the investor and the source of funds.

Science & Research

• A Public Sector Enterprise viz. New Space India Limited (NSIL) has been incorporated as a new commercial arm of Department of Space to tap the benefits of the Research & Development carried out by ISRO.

Ease of Living

• Drafting and enactment of new rental laws to promotes rental living.
• Inter-operable transport card runs on RuPay card and would allow the holders to pay for bus travel, toll taxes, parking charges, retail shopping.

Education

• An amount of 400 crore has been provided under the head, “World Class Institutions”, for FY 2019-20.
• A new programme, ‘Study in India’, that will focus on bringing foreign students to study in higher educational institutions.

Others

Khelo India: National Sports Education Board to be setup under.