Union Budget 2019 : Government sets the ambitious target to acheive the mark of $5 trillion economy.

 

 

                                     Key highlights of Union

                                              Budget 2019                                           

    1. In order to encourage the purchase of electric vehicles, a tax deduction of Rs 1.5 lakh was announced for those purchasing these automobiles.
    2. The government announced a disinvestment target of over Rs 1 lakh crore.
    3. The government reiterated its intention to invest Rs 100 lakh crore in infrastructure.
    4. FM announced that corporate tax rate of 25% would be extended to companies that now have a turnover of upto Rs 400 crore. 
    5. Tax for those with annual incomes between Rs 2 crore to Rs 5 crore will increase by 3%. The income tax on taxpayers earning Rs 5 crore and more, will also be increased by 7 %.
    6. Additional Rs 1.5 lakh deduction has been proposed on interest paid for affordable housing loans till March 2020.
    7. Aadhar and Pan Cards are now interchangeable in the filing of income tax returns. FM Nirmala Sitharaman told the House this will significantly reduce the hassle.
    8. The government also announced 2% TDS on cash withdrawal on amount exceeding 1 crore in a year.
    9. The government today increased income tax surcharge for HNIs (high net worth individuals) earnings more than 2 crore a year.
    10. The price of petrol and diesel will soon go up by Re 1 a litre as the finance ministry has decided to impose a special additional excise duty on the two fuels in the Union Budget 2019.
    11. Nirmala Sitharaman said she has also proposed to increase custom duty on gold and other precious metals from 10% to 12.5%.
    12. Finance Minister Nirmala Sitharaman announced on Friday that non-resident Indians (NRIs) who hold Indian passports, will no longer have to wait for 180 days to get their Aadhaar card.
    13. Centre to charge additional duty and cess of Rs 1/litre each on both petrol and diesel.
    14. Centre to provide water supply to every household by 2024.
    15. Centre pegs customs collection at Rs 1.5 lakh cr, excise collection at Rs 3 lakh cr for FY20.
    16. TDS of 2% on cash withdrawal of more than Rs 1 crore from the bank account.
    17. The government has proposed a Rs 70,000 crore capital infusion into government-owned banks this year.
    18. No change on income tax slabs proposed. However, the FM has proposed to increase the surcharge on individuals having income between 2-5 crore to 3 per cent, and 7 per cent for those with income exceeding Rs 7 crore.
    19. A new series of coins of Rs. 1, Rs 2, Rs. 5, Rs. 10 and Rs. 20 easily identifiable to the visually impaired.

 

 

    Income Tax Budget Announcement LIVE: No Change in

    Slabs, Surcharge Increased For

    Annual Income Over Rs 2 Crore

      Budget 2019: Tax rebate for those with income less than Rs 5 lakh.
 

     Here's a list of some other key targets for FY20.  

   - The government expects Rs 57,480 cr from PSU companies' dividends in FY20
   - Aim to get Rs 1.06 lakh cr from RBI, banks' dividend in FY20   
   - Aims to buyback govt bonds worth Rs 50,000 cr in FY20
   - Non-tax revenue target at Rs 3.13 lakh cr            
   - Net tax revenue target at Rs 6.49 lakh cr 
   - Gross tax revenue target at Rs 24.6 lakh cr
   - Aims to get Rs 3 lakh cr from small savings schemes
   - Net borrowing target at Rs 4.73 lakh cr
   - Gross borrowing target at Rs 7.1 lakh cr

  • Jul 05, 01:01 PM (IST)

  

Direct Taxes - In view of rising income levels, a surcharge will be levied on individuals with taxable income of Rs 2 to 5 crore, and Rs 5 cr and above. The effective tax rate for these categories will increase by around 3 percentage points and 7 percentage points, respectively

  • Jul 05, 01:00 PM (IST)

  

Our government has taken number of initiatives to promote digital payments. FM says to discourage the practice of making business payments in cash the government proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account, she says.

BHIM, UPI, Aadhaar Pay, NEFT, RTGS can be used to promote less cash economy. Business establishments with annual turnover of Rs 50 crore will have to use these modes of payments with no charges or merchant discount rates will be imposed on customers or merchants. RBI and banks will absorb these costs, she says.

  • Jul 05, 12:57 PM (IST)

  

2% tax levied on cash withdrawal over Rs 1 crore per year

Our government has taken number of initiatives to promote digital payments. FM says to discourage the practice of making business payments in cash the government proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account, she says.

BHIM, UPI, Aadhaar Pay, NEFT, RTGS can be used to promote less cash economy. Business establishments with annual turnover of Rs 50 crore will have to use these modes of payments with no charges or merchant discount rates will be imposed on customers or merchants. RBI and banks will absorb these costs, she says.

 

  • Jul, 1:13 PM (IST) 

          Direct Taxes - In view of rising income levels, a surcharge will be levied on individuals

          with taxable income of Rs 2 to 5 crore, and Rs 5 cr and above. The effective tax rate for

          these  categories will increase by around 3 percentage

          points and 7 percentage points, respectively

   KEY POINTS

   -  Re 1 cess/litre on petrol, diesel; higher tax on super rich

   - Interest deduction up to Rs 3.5 lakh for affordable

     housing as against Rs 2 lakh earlier.

   - 2% tax levied on cash withdrawal over Rs 1 cr/yr.

   - FM eases angel tax norms, slashes corporate tax rate

     to 25% for nearly all companies.

   - FY20 divestment target set at Rs 1.05 lakh crore;

     allocates Rs 70,000 crore for PSU bank recapitalization.

 

The government proposes Rs 100 lakh crore investment for infrastructure over 5 years, she says

  • Jul 05, 12:28 PM (IST)

  

FM Nirmala Sitharaman has proposed Rs 100 lakh crore investment for infrastructure over 5 years.

  • Jul 05, 12:26 PM (IST)

  

Regulation of HFCs to move to the Reserve Bank of India (RBI) from NHB.

  • Jul 05, 12:25 PM (IST)

  

One-time six month partial credit guarantee to buy pooled assets of sound NBFCs: FM Nirmala Sitharaman

  • Jul 05, 12:24 PM (IST)

  

The government has proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation.

  • Jul 05, 12:22 PM (IST)

  

Record recovery of over Rs 4 lakh crore have achieved over last 4 years. Provision coverage ratio is at its highest in 7 years and credit growth has improved to over 13%. The government has smoothly carried out consolidation reducing the number of public sector banks by 8. We have enabled 6 public sector banks out of PCA: FM Nirmala Sitharaman

 

  • Jul 05, 12:19 PM (IST)

  

The government is developing 17 iconic tourism sites as world-class tourist centres to improve the flow of domestic and foreign tourists to these destinations. Documentaries with anthropological details will be stored for tourists, she says

 

  • Jul 05, 12:15 PM (IST)

  

The government proposes to consider issuing Aadhaar cards to NRIs with Indian passports in India without having to wait for the necessary 180 days, she says

  • Jul 05, 12:14 PM (IST)

  

The proposal to raise minimum public shareholding threshold from 25 percent to 35 percent would increase supply in stock market. This poses a risk to the valuations of tightly-held companies having low-market float.

  • Jul 05, 12:13 PM (IST)

  

Training of 10 million in industry relevant skills like AI, IoT and Big Data will help address the severe skill shortage technology and IT companies are facing right now.

  • Jul 05, 12:13 PM (IST)

  

 I propose a committee to evaluate and suggest measure to improve women's welfare, she says, pointing out how India's women have stood out distinctly in every field. This reinforces our approach of going beyond just women-centric policies to building women-led movements, she says. 

 

  • Jul 05, 12:10 PM (IST)

  

For the women of India - Naari to Narayani has been the tradition of the country., she says quoting Swami Vivekananda, "There is no chance for the welfare of the world unless the condition of women is improved. It is not possible for a bird to fly with one wing''

  • Jul 05, 12:09 PM (IST)

  

Meanwhile, Sensex is down 150 points, Nifty below 11,900.

  • Jul 05, 12:09 PM (IST)

  

UJALA scheme - Approximately 35 crore LED bulbs have been distributed leading to cost saving of Rs 18,341 crore annually, she says. We will use the mission of LED bulb method to promote solar in the country, she adds.

 

  • Jul 05, 12:07 PM (IST)

Ease of Living

The Pradhan Mantri Shram Yogi Maan Dhan Yojana of providing Rs 3,000  - nearly 30 lakh workers have joined the scheme, she says 

  • Jul 05, 12:05 PM (IST)

  

With National Research Foundation (NRF) and increasing funds to higher education institutes, government is finally waking up to our lost years of innovation and science.

  • Jul 05, 12:04 PM (IST)

  

A new channel is proposed to be started under Doordarshan bouquet to provide a platform for startups to disseminate information in the industry.

  • Jul 05, 12:04 PM (IST)

  

Vivek Gupta, Partner and National Head – M&A/PE Tax, KPMG in India has said: Move for moving minimum public shareholding for listed companies from 25 percent to 35 percent must be implemented carefully. Timing, applicability, etc. to be closely evaluated - we do not want this to be another “forced sale”. Good opportunity for institutional capital and funds.

  • Jul 05, 12:03 PM (IST)

  

The government proposing to streamline multiple labour laws into a set of 'four labour codes', she says. 

  • Jul 05, 12:02 PM (IST)

  

We will increase our efforts to improve the skills of our youth in newer areas such as Artifical Intelligence, Big Data, Robotics, etc valued highly within and outside the country to ensure they can secure high paying jobs both in India and abroad, she says.

  • Jul 05, 11:59 AM (IST)

  

To upgrade quality of teaching, the GYAN was started aimed to bring in the global pool of scientists and researchers, she says, adding such initiatives have paid off. From no single Indian institute in top 200 universities ranking until 5 years ago, we now have 3 institutions in the top 200 global institutions bracket. To make India a hub of higher education the government proposes 'Study in India' to bring in foreign students to pursue education here, she says.

The government proposes allocation of Rs 400 crore for world-class higher education institutions in the country, she says
 

  • Jul 05, 11:58 AM (IST)

  

The government’s sustainable water supply management across India through water conservation methods is imminent given the acute water shortage in several parts. The question would be, how seriously it is taken forward by each states?

  • Jul 05, 11:58 AM (IST)

  

National Education Policy (NEP) will have a National Research Foundation to promote research. This will help fund research ecosystem among universities across the country, without any external funding.

  • Jul 05, 11:57 AM (IST)

  

Upfront incentive on purchase of electric vehicles (EVs), necessary charging infra-structure to widen the adoption of EVs in India and move towards cleaner energy.

 

  • Jul 05, 11:56 AM (IST)

  

Youth of India

The government proposes a National Education Policy to transform and take India's higher education system to global standards, she says

  • Jul 05, 11:55 AM (IST)

Affordable housing focus continues. Meets several objectives: social, investment push and boosting the moribund real estate sector.

  • Jul 05, 11:54 AM (IST)

  

A 'Gandhipedia' is being developed by National Council for Science Museums to sensitise people of positive Gandhian values, she says. 

  • Jul 05, 11:53 AM (IST)

  

Measures for Urban India

Nearly 95% of all cities have declared themselves open-defecation free. More than 45,000 public toilets have been uploaded on google maps and nearly 1 crore citizens have downloaded the Swachhta app, she says.

  • Jul 05, 11:52 AM (IST)

  

The next section of FM Nirmala Sitharaman’s Budget presentation will be about urban areas of the country.

  • Jul 05, 11:50 AM (IST)

  

Swachh Bharat has brought enormous environmental and health benefits. 9.6 crore toilets have been constructed and more than 5.6 lakh villages have become open-defecation free, she says while proposing to expand and undertake solid waste management in every village

  • Jul 05, 11:50 AM (IST)

  

FM Nirmala Sitharaman on India’s space programme:

“India has emerged as a major space power. It is time to harness our ability commercially. To harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.”

  • Jul 05, 11:49 AM (IST)

  

Government's move to have 75,000 skilled entrepreneurs will help boost skill development and job creation.

  • Jul 05, 11:47 AM (IST)

  

Ensuring farmers access to safe and adequate water is another important initiative the government will work toward, she says. Water supply in an integrated and holistic manner will help ensure 'Har Ghar Jal' or water to each house, she says. 

  • Jul 05, 11:47 AM (IST)

  

Electronic funding platform for social enterprises will give necessary impetus to the startups in the space. This is also in line with Economic Survey’s stand on data for public good and data ‘for the people, by the people and of the people’.

  • Jul 05, 11:46 AM (IST)

  

Appreciating farmers' efforts in production of pulses, she says the government hopes they will exhibit similar performance in oilseeds as well. The government will work to ensure farmers enjoy the benefits of e-nam  Ease of business and living should apply to farmers too, she says 

  • Jul 05, 11:46 AM (IST)

  

 Ayushman Bharat figures in the 10 point vision plan, indicating that it will remain bedrock of Modi 2.0 government's public health policy intervention. It needs to be seen if it will get higher allocation in the Budget.

  • Jul 05, 11:44 AM (IST)

  

Providing land from public sector enterprises for affordable housing will help solve land acquisition problems.

  • Jul 05, 11:44 AM (IST)

  

The government plans to allow FPIs to Subscribe to listed debt papers of REITs and InviTs, she says, adding there is also a proposal to merge NRI portfolio route with FPI routes. 

  • Jul 05, 11:43 AM (IST)

  

Easing of local sourcing norms for single brand retail will be good news for single brand retailers such as Ikea and ones in the queue such as Apple. More brands may join the queue, if the relaxations are significant.

  • Jul 05, 11:43 AM (IST)

  

FM talks about FDI in aviation to help divest Air India. Earlier attempt was a failure. Right now, FDI cap is at 49 percent.

 

  Easing of local sourcing norms for single brand retail will be good news for single brand retailers such as Ikea and ones in the queue such as Apple. More brands may join the queue, if the relaxations are significant.

 

  • Jul 05, 11:43 AM (IST)

  FM talks about FDI in aviation to help divest Air India. Earlier attempt was a failure. Right now, FDI cap is at 49 percent.

 

  • Jul 05, 11:41 AM (IST)

  Nearly 1,25,000 km of roads will be upgraded under Pradhan Mantri Gram Sadak Yojana at estimated cost of nearly Rs 80,200 crore, she says. 

 

  • Jul 05, 11:41 AM (IST)

  A hike in insurance FDI for companies is also on the anvil. This will encourage companies from Europe and Southeast Asia to enter the Indian market.

 

  • Jul 05, 11:40 AM (IST)

  Every single rural family except those unwilling to get access will have electricity by 2022, she says 

 

  • Jul 05, 11:43 AM (IST)

  •  
     
     
     
     
    • Jul 05, 11:32 AM (IST)

    The government is contemplating organising an annual global meet to get all three sets of global players: Industrialists, corporate leaders, corporate sovereign and venture funds, she says.


    • Jul 05, 11:30 AM (IST)

      

    India's FDI flows in 2018-19 remained strong compared to global at $54.2 billion, 6 percent higher than last year. The government will examine options of opening up FDI in media, animation and some other sectors to improve these flows further, she says. 


    • Jul 05, 11:28 AM (IST)

      

    We will work to make a platform for listing social enterprises and voluntary organisations to raise capital as equity, debt or units like mutual fund, Sitharaman says  


    • Jul 05, 11:27 AM (IST)

      

    There will be multiple measures undertaken to deepen the corporate bond market, she says adding there is also a proposal to increase minimum public shareholding in companies to 35 percent from 25 percent. 

    • Jul 05, 11:24 AM (IST)

      

    Pension benefits will be offered to 3 crore shopowners with annual turnover of less than Rs 1.5 crore under new scheme called Pradhan Mantri Man dhan Scheme, she says. 

    • Jul 05, 11:22 AM (IST)

      

    FM Nirmala Sitharaman: Chanakya neeti sutra says ‘Kaarya purusha kare na lakshyam sampa dayate (with determined human efforts, the task will surely be completed).’

    • Jul 05, 11:22 AM (IST)

      

    Rental Housing
    Current rental laws are archaic as they do not assess the relation between the lessor and lessee in a fair manner. The government will look at improving the laws, she says.

    • Jul 05, 11:21 AM (IST)

      

    The recommendations of high level empowered committee of retiring power old plants and other structural reforms will also be taken up now. UDAY has also helped so far and it will get better further in the coming years, she says. 

    • Jul 05, 11:20 AM (IST)

      

    Quick read: Key takeaways from FM Nirmala Sitharaman's maiden Budget speech, so far.

    • Jul 05, 11:19 AM (IST)

      

    It is estimated that railway infra will need investment of Rs 50 lakh crore between 2018 and 2030. Given expenditure is Rs 1.4-1.6 lakh crore per annum, it could take decades to complete the projects. It is therefore, necessary to privatise, she says,

    • Jul 05, 11:18 AM (IST)

      

    The FAME II scheme has taken wings. The main objective of the scheme is to provide necessary charging infra and incentivising easy and affordable mode of transportation for the common man, she says.  

    • Jul 05, 11:14 AM (IST)

      

    The ambitious project of Bharatmala will enhance road connectivity and Sagarmala will help port and waterways connectivity, she says. These along with other such initiatives such as Udaan scheme will improve India's infrastructure and enable connectivity and bridge the rural and urban divide, she says. 

    • Jul 05, 11:12 AM (IST)

      

    Trivia: FM Nirmala Sitharaman cited an Urdu couplet, “Yakeen ho to koi raasta niklata hai, hawa ki ot (protection) bhi le kar charagh jalta hai”. In the past too, many finance ministers have added poetry and couplets to their Budget presentation.

    • Jul 05, 11:12 AM (IST)

      

    If before India Inc understood Swadeshi they now look at Make in India. Gone are the days of policy paralysis and Licence Raj regimes. India is now a wealth creator, says Sitharaman, adding she wishes to announce a number of reforms to further the country's growth prospects. 

    • Jul 05, 11:10 AM (IST)

      

    It took us over 55 years to Indian economy to reach $1 trillion but the people's hearts filled with Vishwas and Akansha (hopes of the people of the country) has helped us achieve the next couple of trillions within a short span.

    • Jul 05, 11:10 AM (IST)

      

    The Finance Minister is talking about India’s key schemes and projects and how they have positively impacted people’s lives. She is also speaking about various reforms that the Narendra Modi-led government undertook between 2014 and 2019.

    • Jul 05, 11:09 AM (IST)

      

    In PPP terms we are the third largest economy already after China and US, she says pointing out that India has already become a $2.7 trillion economy, she says.

    • Jul 05, 11:08 AM (IST)

      

    It is well within our capacity to reach the $5 trillion economy vision within the next few years, she says, highlighting the 10 points that the government has laid out to achieve this vision. With these visions and the mandate given by people we are determined to take India to the heights it deserves and with the clear-headed vision of our PM we are on track to achieve it, she says.

    • Jul 05, 11:06 AM (IST)

      

    Trivia: FM Nirmala Sitharaman has now become India’s first full-time woman Finance Minister to present the Union Budget.

    • Jul 05, 11:05 AM (IST)

      

    Our objective was and continues to be 'Mazboot desh ke liye Mazboot nagrik'. With determined human efforts the task will surely be completed, says Sitharaman.

    • Jul 05, 11:04 AM (IST)

      

    We have shown by our deeds that the principles 'perform, reform, transform' can indeed succeed. Have set the ball rolling for a 'New India', says Sitharaman.

    • Jul 05, 11:03 AM (IST)

      

    Finance Minister Nirmala Sitharaman rises to present Budget 2019.

    • Jul 05, 11:01 AM (IST)

      

    The Lok Sabha Speaker has invited Finance Minister Nirmala Sitharaman to present her maiden Union Budget.

    • Jul 05, 11:00 AM (IST)

      

    The Lok Sabha has convened.

    • Jul 05, 10:54 AM (IST)

      

    CLSA expects Nifty to be at 12,500 by the end of 2019, CNBC-TV18 has reported.

    • Jul 05, 10:52 AM (IST)

      

    Breaking the age-old tradition of carrying a briefcase to Parliament for presenting the Budget, Finance Minister Nirmala Sitharaman posed outside Parliament today with a ‘bahi khata (traditional Indian ledger)' instead.

    • Jul 05, 10:46 AM (IST)

      

    The Union Cabinet has approved Budget 2019. FM Nirmala Sitharaman is now set to present her maiden Budget shortly.

    • Jul 05, 10:43 AM (IST)

      

    Budget briefcase trivia 2

    1. The original Gladstone bag has become so shabby that it was officially retired from British service in 2010
    2. On Budget day, the Indian Finance Minister poses with the Budget briefcase outside the Parliament. In Britain, the Chancellor of the Exchequer poses with his suitcase in front of 11 Downing Street before the Budget speech
    3. India’s first Finance Minister RN Shanmukham Chetty carried a leather portfolio to present the first Budget in 1947
    4. From 1970 onwards, Indian finance ministers started carrying a hardbound briefcase. Unlike Britain, its shape and colours vary

    • Jul 05, 10:37 AM (IST)

      

    Quick Budget Glossary 2

    Revised Estimates: Mid-year estimates based on six months’ actual trends that take into account likely expenditure and receipts for the balance six months
    Indirect taxes: Are imposed on goods and services and are paid by consumers when they buy these services. For example: excise duty, customs duty, etc.
    Direct taxes: Paid directly by individuals and corporations. For example, income tax, corporate tax, etc.
    Capital expenditure: Spending to create assets such as highways, buildings, and dams as well as loans given by the Centre to the states.
    Revenue expenditure: Expenditure that does not create any asset, such as subsidies and interest payments.