Union Budget 2019: Highlights, Key Takeaways, PDF Download

Catch the Union budget 2021 highlights

Budget 2019 Speech by Nirmala Sitharaman

Budget 2019 Highlights

Direct Taxation – Budget 2019 Highlights

1. Interest deduction on housing loan under Section 80EEA increased by 1.5 lakh for home loans taken on self-occupied house property by 31/3/2020, houses with the cost of Rs 45 lacs will be eligible for this. 
2. Interchangeability of PAN and Aadhar for ease and convenience of taxpayers! Income Tax return can be filed using Aadhar Number!!
3. To discourage cash payments TDS@ 2% on withdrawals exceeding 1Cr per annum from a bank account under a new section 194N.
4. Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 25% – FY 2019-20
5. Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 37% – FY 2019-20
6. Proposal to give relief in levy of securities transaction tax
7. Corporate tax worth 25% that is applicable to companies with an annual turn over Rs 250 crore will be applicable to the ones with an annual turnover of Rs 400 crore
8. Section 35AD deduction extended to Li-On battery, semi-conductor, Laptops, Fabrication & Photovoltaic cell.
9. Additional income tax deduction of up to Rs. 1.5 lakhs is proposed on payment of interest on loan is taken to purchase electric vehicles under section 80EEB.
10. Faceless and anonymous assessment system for income tax being rolled out this year in phases.

Infrastructure – Budget 2019 Highlights

1. Focus on investment in infrastructure, national highways and aviation sectors
2. The second phase of Bharat Mala to develop state highways
3. A comprehensive restructuring of national highways will be taken up

Education – Budget 2019 Highlights

1. National education policy to propose major changes in both secondary and higher education
2. Swayam Initiative – Digital education to be promoted
3. Greater focus on research and development – National Research Foundation to fund and promote research – pooling of research grants from various ministries and disbursing them, preventing duplication of research projects
4. For the Youth – New national educational policy to transform the Indian education system

Startup Development – Budget 2019 Highlights

Government to introduce a host of exclusive programs for startups on DD News

Household – Budget 2019 Highlights

1. Provision of housing, electricity, clean cooking facility, safe and adequate drinking water to all in rural India
2. Encouragement of rainwater harvesting, groundwater recharge, and management of household wastewater for reuse in agriculture
3. Har Ghar Jal – to all rural household by 2024
4. 7 crore LPG connections delivered to rural households

Pension – Budget 2019 Highlights

Proposed pension benefit to 3 crore retail traders and shopkeepers whose annual turnover is up to Rs 1.5 crore

MSME- Budget 2019 Highlights

1. 350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans
2. MSME: Large-scale extensive reforms planned, government to create a platform for MSME payments
3. MSME to get loans up to 1 crore within 59 minutes. Loans worth Rs. 350 crore already disburse

Women Empowerment- Budget 2019 Highlights

1. Committee to be formed with Public and Private stakeholders for gender equality: FM
2. Every SHG Women having Jan Dhan Account – Rs. 5,000/- overdraft allowed: FM
3. Loan up to 1 lakh under Mudra Scheme for Women entrepreneurs: FM

NRI- Budget 2019 Highlights

1. Proposal for Issuance of Aadhar Card on arrival for NRIs with Indian Passports: FM
2. Aadhaar card for NRI’s post arrival in India
3. To increase NRI investment in Indian capital market – NRI portfolio scheme route and FPI route should merge

Budget – Railway Budget 2019 Highlights

1. Railway infra would need an investment of 50 lakh crores between 2018 and 2030;
2.  PPP  to be used to unleash faster development and delivery of passenger freight services
3. Railway Station Modernisation will be launched this year.
4. Indian Railways to be encouraged to invest more in urban and suburban regions
5. 657KM of Metro Rail operational in the country.

Banking and Financial Sector – Budget 2019 Highlights

1. Reforms will be taken to strengthen governance in Public Sector banks
2. NPAs of commercial banks reduced by over 1 lach crores over last year
3. Record Recovery of over 4lac crore with IBS
4. NPAs of commercial banks reduced by over 1 lakh crore over last year
5. After Consolidation of Public Sector Banks, now 70,000 Crore of Capital boost for credit improvement
6. Government has smoothly carried out consolidation, reducing the number of PSBs by 8
7. NBFCs – that are fundamentally sound, will get fundings from govt to a total of 1lakh crore during the current financial year
8. RBI has limited regulatory Authorities, Now the Regulatory Authorities of RBI over NBFC will be placed
9. Proposals for strengthening the regulatory authority of RBI over NBFCs – Debenture Redemption Reserve to be maintained
10. Proposal to return regulatory authority from NHB to RBI!

Electric Vehicles – Budget 2019 Highlights

1. Lower GST Rate from 12% to 5% on Electric vehicle and Additional Income Tax Deduction of 2.5 Lakh on Interest paid on loan taken to purchase an electric vehicle
2. To make electric vehicles affordable, additional IT deduction on 1.5 lakh on interest paid on loan taken to purchase electric vehicles

Technology – Budget 2019 Highlights

1. Solar storage batteries and chargers included in 35AD deduction: FM
2. Program of mass scaling of LED Bulbs – Approx. 35 Crores of LED bulbs distribute
3. Machines and robots to be deployed for scavenging
4. Focus on VR, AI, Robotics training to youth to align India with the World

Frequently Asked Questions

From what date is section 194N effective?

Section 194N is effective from 1st July 2020

What are the changes in the surcharge rate for individuals as per union budget 2019 ?

Surcharge rates for individuals have been increased in the union budget 2019,

• Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 25% – FY 2019-20
• Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 37% – FY 2019-20

File your income tax for FREE in 7 minutes

Free, simple and accurate. Designed by tax experts

Upload your Form-16