Highlights of Union Budget
Highlights 2019-20
1.
Taxes
·
No change in
personal income tax rates.
·
Increase in
surcharge on super rich:-
3% surcharge for Rs 2 crore income.
7%surcharge for Rs 5 crore and above.
· Annual turnover
limit for 25 percent corporate tax raised to Rs 400 crore from Rs 250 crore.
·
Taxpayers with
annual turnover of less than Rs five crore to have to file only quarterly.
·
Additional Rs 1.5
lakh deduction on home loans.
·
Interchangeability
of PAN and Aadhaar for ITR who don't have PAN cards.
·
Two percent TDS
on withdrawals of Rs one crore in a year from bank accounts for business
payments.
·
Government waives
MDR changes on cashless payment.
2.
Economy
·
Targets to become
a $3 trillion economy in FY20, $5 trillion in a few years.
·
Government
proposes changes to kick start domestic and foreign investment.
·
Will create the
blueprint for gas, water grids and regional airports.
·
Government has
proposed to expand Swach Bharat to include solid waste management in every
village
3.
To boost investment
·
To liberalise FDI
in aviation, media, animation and insurance intermediaries.
·
To implement
enabling measures to boost International Financial Service Centres (IFSCs).
·
To set up a
Credit Guarantee Enhancement Corporation.
·
To initiate steps
for electronic fund raising programme for listing of social enterprises,
voluntary organizations.
·
To hike statutory
limits for foreign investments in some companies
4.
Market reforms
·
Asks SEBI to
evaluate hiking minimum public shareholding to 25 percent from 35 percent.
·
Government will
work with exchanges to allow AA bonds to be used as collateral.
·
Proposes
rationalising and streamlining of KYC (know your customer) norms for Foreign
Portfolio Investors (FPIs) to make it investor-friendly.
·
NRI portfolio
route to be merged with FPI for seamless investment in stock markets.
·
Credit Guarantee
Enhancement Corporation will be set up in 2019-20, action plan to deepen
markets for long-term bonds with specific focus on infra sector to be put in
place.
·
The government
also plans to take up measures to make RBI and SEBI depositories inter-operable.
·
The government
will allow FPIs/NRIs to subscribe to listed debt papers of REITs and InvITs.
5.
Small businesses/MSMEs
·
The government
proposes to extend pension benefit to three crore retail traders with an annual
turnover less than Rs 1.5 crore under Pradhan Mantri Karam Yogi Man Dan Scheme.
·
Centre will
create a payment platform for MSMEs for payment of bills.
·
Hundred new
clusters will be set up in 2019-20 to enable 50,000 artisans to come into the
economic value chain.
·
Will set up
10,000 new farmer producer organizations.
·
To start
television programme exclusively for startups.
6. Railways
·
Railways to be
encouraged to invest more in suburban rail network via special purpose vehicles
(SPVs) and enhance metro rail network through public-private partnerships.
·
Railway station
modernisation programme will be launched this year.
7.
Education
·
The government
will bring in new education policy to propose changes in school, higher
education.
·
The government
also proposed to set up a national research foundation to fund, coordinate and
to promote research in the country.
·
National Research
Foundation will assimilate research grants by ministries.
·
A Gandhi-pedia is
being developed to sensitise youth about Mahatma Gandhi's ideas.
·
Draft legislation
for higher education commission of India to be presented.
·
Proposes Study in
India programme to attract foreign students.
·
National Sports
Education Board to be set up under Khelo India scheme.
·
Allocate Rs 400
crore for world-class higher education institutions in financial year 2020
8.
Labour reforms
·
Government to
streamline multiple labour laws into a set of four labour codes.
·
The government
plans to focus on training new age skills like AI, robotics, 3D printing.
9. Ease of
living
·
Rs 3,000 pension
per month for informal sector workers.
·
Aadhaar card
under 180 days for NRIs on arrival in India.
·
The government to
open embassies in countries where India doesn't have a resident diplomatic
mission as yet.
10. Women
empowerment
·
Nari tu Narayani:
Women SHG Interest Subvention Programme to be expanded to all districts in
India.
·
Rs 1 lakh loan to
be provided for SHG women members.
·
Every verified
woman SHG member with a Jan Dhan account can avail Rs 5,000 overdraft facility.
11. Banks
·
Allocate Rs
70,000 crore for PSU bank recapitalisation
12.
NBFCs
·
Fundamentally sound
NBFCs to keep getting funding from banks.
·
To allow FIIs and
FPIs investment in debt securities issued by NBFCs.
13. Agriculture/fisheries
·
Government to
invest widely in agriculture infrastructure.
·
Support private
entrepreneurship in value addition in agriculture.
·
Proposes Pradhan
Mantri Matsya Sampada Yojana to address critical infrastructure gap in
fisheries sector.
14. Transportation
·
To carry out
comprehensive restructuring of National Highway programme.
·
Cargo volume on
Ganges to increase four times over the next four years.
·
In second phase
of Bharat Mala project, states will be helped to develop roadways.
·
A total of
1,25,000 km of roads will be upgraded under Pradhan Gram.
·
Sadak Yojana
under Phase III at estimated cost of Rs 80,250 crore.
15. Aviation
·
Time right for
India to enter into aircraft financing and leasing.
·
Will create
congenial atmosphere for development of MRO services.
·
To harness
India's space ability commercially, New Space India (NSIL) has been
incorporated to tap the benefits of ISRO.
16. Power
·
Package for power
sector tariff and structural reforms to be unveiled soon.
17. Retail
·
Local sourcing
norms to be eased for single-brand retail FDI
18.
Real estate
·
Will finalise a
model tenancy law and circulate to states; and propose steps for rental housing.
·
Govt proposes
setting up 1.95 crore houses under Pradhan Mantari Awas Yojna (Rural).
