• The fiscal deficit target for the year 2019-20 revised to 3.3%(of GDP) from 3.4% in last year.
• Total Revenue and expenditure for the year 2019-20 revised to 20.82 and 27.86 Rs Trillion from 18.23 and 24.57 Rs trillion in the last year.
Finance Minister Nirmala Sitharaman presented her maiden Budget on Friday, which had plenty for various sectors. Here are the top eight takeaways from Union Budget 2019.
Additional deduction up to Rs 1.5 lakh for interest paid on loans for affordable houses valued up to Rs 45 lakh. This will translate into benefit of Rs 7 lakh for middle-class homebuyers over loan period of 15 years.
Buyback of shares of listed companies to attract tax at 20%. Listed companies to have minimum public shareholding of 35%, up from 25%.
Companies with an annual turnover of up to Rs 400 crore to pay corporation tax at 25%. Individuals with taxable income of Rs 2-5 crore and above Rs 5 crore to pay 3 and 5 percentage points higher surcharge, respectively.
Gram Sadak Yojana to upgrade 1.25 lakh km at over Rs 80,000 crore in 5 years. SFURTI to enable 50,000 village-based artisans to join the value chain for bamboo, khadi.
I-T deduction of Rs 1.5 lakh on interest on loans for purchase of electric vehicle. Customs duty exempted on certain parts of EVs.
To be treated at par with banks in respect of tax breaks on interest received. Proposal to be extended to deposit taking as well as systematically important non-deposit taking NBFCs also.
Proposed to exempt start-ups from angel tax. Allowed to carry forward and set off losses.
Interest subvention of 2% for all GST-registered MSMEs on fresh or incremental loans. Payment platform to enable filing of bills and payment on the platform itself.
The Union Budget has enhanced its focus on real estate, particularly in the affordable housing segment.
To stimulate demand in the residential market, the Centre has announced additional deduction in income tax of ₹1.5 lakh for interest paid on housing loans for affordable housing properties (valued up to ₹45 lakh), over and above the exiting deduction of ₹2 lakh.
Further, to narrow the demand-supply gap in the market, the Centre has proposed to open up land parcels of government and public sector undertakings to be utilised for affordable housing and public infrastructure. A Model Tenancy Law would be finalised to boost the rental housing market and improve rental yield in the country.
Railway is looking at specific projects for freight corridors and urban transportation through private participation. This will help to overcome the fund inflows and PPP will help more private sector involvement in projects.
Indian Railways will open up certain areas to private investment to improve efficiency and meet passenger expectations, said Piyush Goyal, minister for railways, and commerce and industry.
Railway Ministry is planning to spend ~₹50-lakh-crore over next 10-12 years after analysing the areas of opportunity, those which need funding, where we can improve efficiency and bring in modern technology while keeping it a railway owned entity.
The 30% sourcing norm for single brand retail trade will imply more local procurement and export from India. This will boost manufacturing and trade.
Removal of Angel Tax will help the honest and new entrepreneurs.
Railway Minister highlighted that there might not be a need for diesel in the coming 3-4 years since the country is moving rapidly to electrification.
Railway Ministry is planning to spend ~₹50-lakh-crore after analysing the key focus areas namely: (i) freight corridors; (ii) more semi-high-speed or high-speed trains; (iii) double, triple or quadruple tracks