#UnionBudget: From Price hikes to tax sops know what it holds for you
Where the opposition called it a 'old wine in a new bottle', former Uttar Pradesh chief minister Mayawati criticised the Budget for favouring Industrialists and Private Sector, not Indian Farmers. To understand what this budget holds for all of us, lets take a look into the reforms, policies and taxation proposed by India's first full-time Finance Minister, Sitharaman.
New Delhi: The much awaited Union budget 2019 was finally presented in Lok Sabha on Friday by Finance Minister Nirmala Sitharaman. In her 2 hours 15 minutes long speech she touched all the sectors where some of her policies gave sigh of relief to some people, other put an extra load on the pockets of the common man.
Where the opposition called it a 'old wine in a new bottle', former Uttar Pradesh chief minister Mayawati criticised the Budget for favouring Industrialists and Private Sector, not Indian Farmers. To understand what this budget holds for all of us, lets take a look into the reforms, policies and taxation proposed by India's first full-time Finance Minister, Sitharaman:
-No change in personal income tax rates.
-Tax exemption limit increased to INR 5 lakhs.
-Tax on INR 2-5 crore income increases by 3 per cent surcharge, whereas, on above INR 5 crore income surcharge increased by 7 per cent.
-Additional Rs 1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakh.
-Custom duty hike on fuel by 1 rupee, gold and precious items; Petrol & diesel to get costlier.
-Corporate tax with turnover of up to Rs 400 crore slashed to 25 per cent from a current rate of 30 per cent.
-Advises GST Council to reduce tax rate on EVs from 12 per cent to 5 per cent.
-Duty has been raised on: tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.
--Interchangeability of PAN and Aadhaar for ITR for thosewho don't have PAN cards.
- To promote house renting, interest paid on loans taken for affordable housing by Rs 1.5 lakh to Rs 3.5 lakh per annum for houses valued up to Rs 45 lakh.
To promote digital payments
-2% TDS on withdrawals of Rs 1 crore in a year from your bank account for business payments.
-No charge on digital payments: MDR charges waived on cashless payment.
Ease of living
-Aadhaar card for NRIs on arrival in India.
-Rs 3,000 pension per month for workers from the informal sector.
-Inter-operable One Nation One transport card: ATM-like Transport card for universal travel on various modes of transport (metro, road, railways etc).
-Govt plans to create MRO (Manufacturing, Repair and Operate) industry.
-Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.
-Government envisions using rivers for cargo transport to decongest roads and railways.
-Fiscal deficit in FY19 at 3.3% of the GDP.
-Govt will start raising part of borrowing in foreign currency.
-Govt external debt to GDP is among the lowest in the world.
-'Nari tu Narayani': Women SHG Interest Subvention Programme to be expanded to all districts in India.
-Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.
-Rs 1 lakh loan to be provided for SHG women members.
-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.
-Propose to provide Rs 70,000 crore capital for PSU Banks.
-Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank.
-A new PPP model will usher in the a new dawn of Indian railways.
-Railways to be encouraged to invest more in suburban rail network via SPVs.
-Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030.
-Propose easing angel tax for startups.
-Angel tax: Wont require scrutiny from I-T department for startup.
-2% interest subvention for GST-registered MSME on fresh or incremental loans.
-'Stand Up India' Scheme to continue till 2025.
-New television channel for start-ups.
-Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.
-Govt to launch 'Study in India' programme to attract foreign students in higher education.
-Allocate Rs 400 crore for world-class higher education institutions in FY 20 .
-To unveil a new education policy.
-National research foundation to fund, coordinate and to promote research in the country.
-New Higher Education Commission with focus on higher autonomy.
-New national education policy to propose changes in school, higher education.
-17 iconic world-class tourist sites to be developed.
Foreign Direct Investment
-Local sourcing norms will be relaxed for the single-brand retail sector.
-Govt to open FDI in aviation, insurance, animation AVGC and media.
-Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly.
-Long-term bonds for market.
-Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector.
-To allow FIIs & FPIs investment in debt securities issued by NBFCs.
-Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organisations.
-FAME II scheme aims to encourage faster adoption of electric vehicles through the right incentives and charging infrastructure.
For Rural India
-'Gaon', 'Gareeb' and 'Kissan' are the main focus of our government.
-New 'Jal Shakti ministry' will work with states to ensure 'Har Ghar Jal' for all rural houses by 2024.
-'Pradhan Mantri Gram Sadak Yojana phase 3' is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
-Govt will set up 100 new clusters for 50,000 artisans in FY 20.
-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.
-Govt to promote innovative zero Budget farming.
-10,000 new farm produce organisations.
-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.
-To popularise sports at all levels, National Sports Education Board for development of sports persons to be set up under 'Khelo India.'
State of the economy
-Railways will require investment of Rs 50 lakh crore from 2018-30.
-Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure.
-'Gandhipedia' is being developed to sensitize the youth about positive Gandhian values.
The unambiguous mandate by the people in the recent election has set the ball rolling for the New India.
-NPAs recover Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year.
-Rashtriya Swachhta Kendra to be inaugurated at Rajghat on October 2.
-The people of India have validated their two goals for our country's future: National security and Economic growth.
It took us over 55 years to reach $1 trillion dollar economy, but we added $1 trillion in just 5 years.
-We can very well reach $5 trillion in the next few years.
-India to become $3 trillion economy this year. To make India achieve $5 trillion economic goal, we need to continue to take structural reforms.