Published On: Fri, Jul 5th, 2019

Highlights of Union Budget for 2019-20

Finance Minister Nirmala Sitharaman presenting Union Budget 2019-20 in the Lok Sabha on Frida

New Delhi: Highlights of the Union Budget for 2019-20 presented by Finance Minister Nirmala Sitharaman in Parliament Friday:

  • Tax deducted at source of 2% for cash withdrawals of over Rs 1 cr a year Surcharge hiked on individuals with taxable income above Rs 2 cr
  • Effective tax rate on Rs 2-5 crore taxable income hiked by 3% Effective tax rate on over Rs 5 crore taxable income hiked by 7%
  • Companies with turnover up to Rs 400 cr to pay 25% tax Aadhaar, PAN interchangeable for filing income tax returns
  • To launch an automated, faceless assessment of tax To make pre-filled tax return forms available
  • Legacy dispute resolution plan to settle litigation in excise, service tax cases Fiscal deficit for 2019-20 at 3.3% of GDP
  • Gross market borrowing pegged at Rs 7.1 lakh crore GST collections pegged at Rs 6.63 lakh crore
  • Disinvestment target pegged at Rs 1.05 lakh cr Dividend income from state-owned companies seen at Rs 57,486 cr
  • Dividend/surplus from RBI, financial institutions at Rs 1.06 lakh cr Customs duty on gold, precious metals hiked to 12.5%, from 10%
  • Customs duty on stainless steel hiked to 7.5% from 5% Special Additional excise, road cess on petrol, diesel hiked by Re1/litre
  • Tax deduction of Rs 1.50 lakh on e-vehicle loan interest Extra Rs 1.50 lakh tax deduction on affordable housing loans
  • RBI, banks to absorb merchant discount rate at small shops To impose basic excise duty on tobacco products
  • Excise duty of Rs 5/1,000 sticks imposed on filter cigarettes India now 6th largest economy vs 11th five years ago
  • India to become USD 3 trn economy in FY20 Well within the capacity to reach USD 5-trln economy in few years
  • To soon announce policy package for power tariffs PSU banks to get Rs 70,000 cr capital
  • Housing finance cos to be regulated by RBI, as against National Housing Bank at present Proposed more power to RBI over NBFCs in Finance Bill
  • One-time, six-month guarantee to PSU banks to buy some NBFC loans Strategic divestment of CPSEs to remain a priority Mulling below 51% stake in PSUs on a case-to-case basis
  • Govt to re-initiate process of Air India sale
  • Plans to increase minimum public shareholding in listed cos to 35% from 25%
  • Steps taken for easing angel tax issue of startups
  • Startups, investors not to face scrutiny for share premium if they file return.

PTI

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