Key details of the Union budget 2019-20

New Delhi: Union Finance Minister Nirmala Sitharaman today delivered her speech on the budget and presented to the Parliament the budget of the Union for the period 2019-20.
Key aspects of the Union budget 2019 are:
10-point vision for a decade
Building India’s team with Jan Bhagidari: Minimum government government.
Achieving the green Mother Earth and the Blue Sky through India without pollution.
Creating digital India in every sector of the economy.
Launch Gaganyan, Chandrayan, other space and satellite programs.
Building Physical and Social Infrastructure.
Water, water management, clean river.
Blue economy.
Self-sufficiency and export of food-cereals, legumes, oilseeds, fruits and vegetables.
Achieving a healthy society through Ayushman Bharat, well-fed women and children, citizen security.
Emphasis on MSMEs, start-ups, defense production, cars, electronics, factories and batteries and medical devices under Make in India.
According to the economy of 5 trillion dollars
“Human hearts filled with Aasha (Hope), Vishwas (Trust), Aakansha (Aspiration),” says FM.
The Indian economy will become an economy of $ 3 trillion in the current year.
The government is trying to make India an economy of 5 trillion dollars.
“India Inc. are India’s creators of work and national wealth creators,” FM said.
Need for investment in:
Digital economy.
Job creation in small and medium-sized enterprises.
An initiative to launch a positive investment cycle should be proposed.
The life of an ordinary person has changed through MUDRAloans for easier business.
Measures related to MSMEs:
Pradhan Mantri Karam Yogi Maandhan scheme
Pension fees for about three retailers and small traders with annual turnover less than Rs. 1.5 crore.
Enrollment should be simple, requires only Aadhaar, bank account and self-declaration.
350 crore allocated for FG 2019-20 for 2% interest subsidy (on fresh or additional loans) to all GST-registered MMSP, under the MMSP subsidy scheme.
A payment platform for small and medium-sized enterprises that will be created to enable bill submission and payment, in order to eliminate delays in government payments.
The first Indian developed transport ecosystem for transport, based on National Common Mobility Card (NCMC) standards, was launched in March 2019.
An interoperable transport card works on the RuPay card and allows owners to pay for travel by bus, toll, parking costs, retail.
Mass pushing all forms of physical association through:
Pradhan Mantri Gram Sadak Yojana.
Industrial corridors, dedicated freight corridors.
Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN
State road networks should be developed in the second phase of Bharatmala
Gange’s navigational capacity can be enhanced through multi-modal terminals in Sahibganjand Haldia and navigation lock in Farakki until 2019-20, under the Jal Marg Vikas project.
Four times the increase in the next four years estimated in the amount of cargo on the Ganges, which led to cheaper freight and passenger traffic and reduced import bills.
Necessary investment of 50 lakhs in the railway infrastructure in the period 2018-2030.
Proposed public-private partnership for development and completion of railroads, production of railway vehicles and delivery of passenger freight services.
The 657 kilometers of the Metro Rail network has become operational throughout the country.
Policy interventions for maintenance, repairs and overhaul (MRO) policies, in order to achieve self-confidence in the aviation segment.
The government will set up a regulatory map for the creation of India as the center for financing aircraft and leasing activities from the Indian coasts.
Outlay of Rs. 10,000 crore for 3 years approved for Phase II FAME
Preliminary stimulus proposed at the purchase and charging infrastructure, in order to encourage faster adoption of electric vehicles.
Only e-vehicles with the drive to advanced batteries and registered e-vehicles should be encouraged within the FAME Scheme.
The National Highway Program should be restructured to ensure the national highway network, using the financing model.
Power at affordable prices for countries is provided under “One nation, one network”.
The plans will be available for gas networks, water supply networks, i-roads and regional airports.
Recommendations of the High Level Authorized Committee (HLEC):
Going to an old and inefficient facility.
Solving the problem of low capacity utilization of the gas plant due to the lack of natural gas.
Charges for cross-subsidies, unwanted fees for the sale of open access, or generated generation for industrial and other consumers of bulk bulk goods are removed under the DISCOM Assurance Agreement
Yojana (UDAY).
The tariff package for the energy sector and structural reforms will soon be announced.
Reform measures are needed to promote housing for rent.
The model of the Lease Act should be finalized and transmitted to the states.
Joint development and concession mechanisms to be used for public infrastructure and affordable housing on land plots held by the central government and the CPSE.
Measures to improve the source of capital for infrastructure financing:
The Corporation for Improving Credit Guarantees will be established in 2019-2020.
It is necessary to establish an action plan for deepening the long-term bond market with a focus on infrastructure.
It is proposed to transfer / sell investments by FII / FPI (to debt securities issued by IDF-NBFC) to any domestic investor during the specified locking period.
Measures to deepen the bond market:
Stock exchanges will be allowed to approve AA bonds as collateral instruments.
The ease of using trading platforms for corporate bonds is being considered.
Social Market:
Electronic fundraising platform under the regulatory framework SEBI.
List of social enterprises and voluntary organizations.
Collect capital as equity, debt or as a unit as a mutual fund.
SEBI will consider raising the threshold for a minimum public share in quoted companies from 25% to 35%.
Meet your customers (KYC) standards for foreign investors that will be more friendly to investors.
The government will complement IRB’s efforts to invest investors in treasury bills and securities, with further institutional development through the stock market.
Measures to make India a more attractive destination for FDI:
Foreign direct investment in sectors such as aviation, the media (animation, AVGC) and insurance sectors can be further opened after several stakeholders are questioned.
Insurance brokers to get 100% FDI.
Local norms for sources should be mitigated for foreign direct investment in a single retail sector.
The government is organizing an annual meeting of Global Investors Meet in India, using the National Investment Fund for Infrastructure (NIIF) as an anchor to acquire all three sets of global players (pensions, insurance and state funds).
It was proposed that the legal limit for FPI investments in the company be increased from 24% to the sectoral foreign investment limit. The option given to the corporation in question is to confine itself to the lower threshold.
FPIs will be allowed to subscribe to debt securities issued by ReITs and InvITs.
It was suggested that the NRI-Portfolio Investment Scheme be merged with the Foreign Investment Portfolio.
Cumulative resources raised through new financial instruments such as InvITs, Real Estate Investment Funds (REITs), and toll-toll-based models exceed Rs. 24,000 crore.
New Space India Limited (NSIL), PSE, established as the new commercial department of the Department of Space.
Use the benefits of research and development by ISRO, such as the commercialization of products such as launch vehicles, technology transfer and the marketing of space products.
Direct taxes
The tax rate has been reduced to 25% for companies with an annual turnover of up to Rs. 400 crore
The fee for natural persons who have a taxable income of Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above.
Indian ease of doing business was ranked in the category of “paying taxes” from 172 in 2017 to 121 in 2019.
Direct Tax Revenues increased by over 78% over the past 5 years to Rs. 11.37 lakh crore
Simplification of tax and easy life – facilitating technology alignment:
PAN and Aadhaar interchangeability
Those who do not have PAN can submit tax returns using Aadhaar.
Aadhaar can be used wherever necessary.
Previously filling income from income tax for faster, more precise tax returns
Pre-filled tax returns with details of several revenue and deductions that will be available.
Information collected from banks, stock exchanges, mutual funds, etc.
E-rating without face
E-evaluation without a face, without a human interface.
To be performed initially in cases requiring the verification of certain transactions or disagreements.
Accessible housing
Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed until March 31, 2020 for the purchase of a house worth up to Rs. 45 lakh.
The total benefit of about Rs. 7 lakh in the period of 15 years.
Boost electric vehicles
An additional tax deduction on Rs. 1.5 lakh on interest paid on loans for electric vehicles.
The customs duty is exempted from certain parts of electric vehicles.
Another direct tax measure
Simplification of tax laws to reduce the real difficulties of taxpayers:
Greater taxation threshold for initiating criminal prosecution due to non-submission of the application
The appropriate class of persons exempted from the provisions on the prohibition of the misuse of Article 50CA and Article 56 of the Law on Income Tax.
Help for start-ups
The release of capital gains from the sale of a residential house for investment in start-up companies has been extended to FG21.
The “Angel’s Tax” issue was resolved – beginners and investors submitted the necessary declarations and provided information in return not to be subjected to any controls regarding the estimate of premiums on stocks.
Funds raised by newly established companies do not require consideration by the Department of Income Tax
E-verification mechanism for determining the identity of the investor and the source of funds.
Special administrative arrangements for ongoing assessments and appeals
The Evaluation Officer shall not seek an investigation in such cases without the approval of a supervisory officer.
There is no valuation check of shares issued for Alternative Investment Funds of category II.
Relaxing conditions for transferring and punching losses.
NBFCs
Interest on certain bad or doubtful debts arising from the takeover of deposits, as well as systemically important non-deposit claims received from NBFC, are taxed in the year in which interest was actually received.
International Center for Financial Services (IFSC)
Proposed direct tax deductions for the IFSC:
A 100% profit-tax deduction in any ten-year block over a fifteen-year period.
Exemption from dividend distribution tax on current and accumulated income to enterprises and investment funds.
Exemptions from capital gains for alternative investment funds of category III (AIF).
Loan relief on credit is taken from non-residents.
Tax on Securities Transactions (STT)
STT is limited only to the difference between the calculation and the cost of the strike in case of using options.

Sharing is caring!