Union Budget: Key points

Union Budget: Key points

Union Finance Minister Nirmala Sitharaman presented the budget in Lok Sabha. Here are the key points of Budget 2019 which will give you a fair idea of what will be costlier (or cheaper) now, and in which direction the country will be moving:

  • No change in Income Tax slabs. However, surcharge has been increased for those earning between ₹2 and 5 crore by 3% and those earning ₹5 crore and above by 7%.
  • FM has proposed to make Aadhaar and Pan Card interchangeable so that Aadhaar can be used for verification with no requirement for PAN.
  • An additional deduction of ₹1.5 lakh on interest on loans borrowed for buying houses costing up to ₹45 lakh.
  • Additional Income Tax exemption of`₹1.5 Lakh on interest paid on loans for electric vehicles.
  • The FM said to discourage the practice of making business payments in cash, the government wanted to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account.
  • Nearly 1.95 crore more houses proposed to be provided to eligible beneficiaries under the Pradhan Mantri Awas Yojana.
  • Ensuring 100 per cent access to safe and adequate water for all households by 2024.
  • ₹70,000 crore to be provided to Public Sector Banks (PSBs) in order to boost their capital.
  • To resolve the Angel Tax issue, start-ups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by start-ups will not require any tax scrutiny.
  • The government is setting an enhanced target of ₹1,05,000 crore for disinvestment during FY 2020 and will continue with disinvestment of PSUs in the non-financial space as well.
  • FM proposes to expand self help groups to all districts; one woman in every SHG to get loan up to ₹1 lakh under Mudra Yojana.
  • Government to streamline multiple labour laws into a set of four labour codes.
  • FM Nirmala Sitharaman said SEBI has been asked to consider increasing minimum public shareholding criterion from 25 per cent to 35 per cent to encourage more equity investment by the people.
  • Nearly 1,25,000 km of roads to be upgraded under Pradhan Mantri Gram Sadak Yojana at an estimated cost of nearly ₹80,200 crore.
  • Government to examine proposals on 100% FDI in aviation and media.
  • Pension benefits for 3 crore shop owners with annual turnover less than Rs 1.5 crore under new scheme called Pradhan Mantri Jan dhan Scheme.
  • Government said it would try to privatise Railways. Estimated railway infra upgrade will need investment of ₹50 lakh crore between 2018 and 2030, said the FM.
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