Our Finance Minister Nirmala Sitharaman has recently delivered her speech on recent Union Budget 2019-2020 in the Parliament, let’s have a quick look on its key points and figure out how it is going to be transformative?
Is there anything beneficial for you? Let’s figure out.
Top-10 Key Points of Union Budget 2019-2020, that you need to know
1. New Income Tax rates:
Below are the income tax slabs and rates for the new financial year 2019-20
|Income Slabs||Income Tax Rates|
|Up to Rs. 2.5 lacs||Nil|
|2.5 lacs to 3 Lacs||5%|
(Nil for senior citizens above 60 years)
|3 lacs to 5 Lacs||5%|
(Nil for senior citizens above 80 years)
|5lacs to 10 lacs||20%|
|Above 10 lacs||30%|
2. Increase in Surcharge for the individual in higher income slabs:
As the income levels are rising, so the individuals with high-income bracket will need to contribute more to the development of the nation. There is a proposal to enhance the surcharge to an individual having income bracket of:
- 2-5 crores: Taxable amount will be 3%.
- 5 crores and above: Taxable amount will be 7%.
3. Tax Concession:
- Initially, the corporate taxes were 25%, for the companies having the annual turnover of Rs. 250 crores. Now, according to updated budget corporate taxes will remain 25% even for the companies with the annual turnover of 400 crores. That covers almost 99.3% of all companies.
- If any consumer chooses to buy an electric vehicle there will be a new Tax deduction of up to Rs 1.5 lakh has been proposed on Interest paid on Loans taken towards its purchase.
- For home loans, there will an additional tax deduction of Rs. 1.5 lacs. It is applicable for all loans borrowed till 31st March 2020.
- Taxpayers with annual turn over of less than 5 crores are required to file only quarterly returns.
4. Aadhar is a new plan:
Since Aadhar has been used by 120 crores of the Indian population, it can be used interchangeably with the PAN card.
In all cases, the Aadhar card is the only requirement even if a PAN card is not available.
All ITRs can be filed using only Aadhar number.
5. Compulsory filing of Income Tax Returns (ITR):
The Union Budget 2019-20 proposes to make the compulsory filing of ITR
- who have deposited more than Rs. 1 crore in a year, in their current account, or
- who have spent more than Rs. 2 lakh on foreign travel, or
- spent more than Rs. 1 lakh on electricity consumption in a year.
6. New ELSS Variant:
The government is planning to launch its Central Public Sector Enterprises (CPSE) exchange-traded fund (ETF) for tax-saving in mutual fund similar to ELSS format in Mutual Funds.
7. Proposal for NRIs:
There is a proposal for NRIs to provide them Aadhar cards along with Passport. Now, there will be no waiting period of long months to wait for the Aadhar card, upon their arrival in India.
8. Income tax returns with PREFILLED information on Capital Gains and Expenses:
In order to reduce significant time in filing income tax returns, there will be a new facility on pre-filled IT Returns with capital gains and interest on FDs. Also, there will be an e-assessment of tax returns through electronic mode. It is intended to launch this year.
9. Social Stock Exchange:
There will be an introduction of Electronic Fund Raising platform under SEBI for listing social enterprises and voluntary organizations; those are working for the realization for social welfare objective, so they can raise the capital towards investment on equity, debt or Mutual Funds.
10. TDS on Cash Withdrawals:
2% TDS will be levied on Cash Withdrawals if the sum is above Rs. 1 crore in a year, from the bank account.
Below are other important points worth knowing about Union Budget 2019-2020
- There will be a hike on excise duty on fuel by 1%.
- Hike on import duty on Gold by 12.5%.
- New series of coins, including a new coin of Rs. 20 are coming up.
- FDI in Single Brand Retail: Its purpose is to produce gains in order to make India more attractive FDI destination. The Government will examine suggestions of further opening up of FDI in industries such as Aviation, Media, Animation and insurance sectors in consultation with all the stakeholders.
100% FDI will be permitted for insurance intermediaries.
- Public Sector Banks are proposed to be further provided by Rs. 70,000 crores to boost credit for the strong impetus to the economy.
- New TV channels are to be launched toward promoting start-ups and to help to make the match for funds. This initiative will significantly benefit emerging entrepreneurs.
- India is emerging significantly in the education sector. The new national education policy is intended to transform the Indian education into one of the best in the world, with the focus on bringing in foreign students into our universities.
- The new proposal of Rs. 50 lacs for Railway Infrastructure.
- Loan amount of Rs. 1 crore is proposed to MSMEs.
- There is an extension on the pension benefits to 3 crore retail traders and shop traders whose annual turnover is less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan (PMKYM) Scheme.
- Meet of global investors will happen in India.
- Business establishments with an annual turnover of Rs. 50 crores can use digital payment methods such as BHIM UPI, NEFT, RTGS, Aaadhar pay, etc. Without imposing charges on customers or merchants.
Let us know in the comment section below, what do you think about this new Union Budget 2019-2020?