UN Budget

Budget 2019

1. Direct Taxation

Interest deduction on housing loan under Section 80EE increased by 1.5 lakhs 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.

Interchangeability of PAN and Aadhar for ease and convenience of taxpayers! Income Tax return can be filed using Aadhar Number!!

To discourage cash payments TDS@2% on withdrawals exceeding 1Cr per annum from a bank account

Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 18% from 15%

Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 22% from 15% – FY 2019-20

Proposal to give relief in levy of securities transaction tax

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

35AD extended to Li-On battery, Semi-Conductor, Laptops, Fabrication & Photo Volic

2. Infrastructure

Focus on investment in infrastructure, national highways and aviation sectors

The second phase of Bharat Mala to develop state highways

A comprehensive restructuring of national highways will be taken up

3. Education

National education policy to propose major changes in both school and higher education

Swayam Initiative – Online education to be promoted

Greater focus on research and education – National Research Foundation to fund and promote research – pooling of research grants from various ministries and disbursing them, preventing duplication of research projects

For the Youth – New national educational policy to transform the Indian education system.

4. Startup Development

Exclusive programs for startups on DD News

5. Household

Provision of housing, electricity, clean cooking facility and safe and adequate drinking water to all: Rural India

Rainwater harvesting, groundwater recharge, and management of household wastewater for reuse in agriculture

HarGhar Jal – to all rural household by 2024

7 crore LPG connections delivered to rural households

6. Pension

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


350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans.

MSME: Large scale extensive reforms planned, government to create a platform for MSME payments.

MSME to get loans up to 1 crore within 59 minutes …350 Crore loans already given

8.Women Empowerment

Committee to be formed with Public and Private stakeholders for gender equality: FM

Every SHG Women having Jan Dhan Account – Rs. 5,000/- overdraft allowed: FM

Loan up to 1 lakh under Mudra Scheme for Women entrepreneurs: FM

9. NRI

Proposal for Issuance of Aadhar Card on arrival for NRIs with Indian Passports: FM

Aadhaar card for NRI’s post arrival in India

To increase NRI investment in Indian capital market – NRI portfolio scheme route and FPI route should merge

10. Budget – Railway Updates

Railway infra would need an investment of 50 lakh crores between 2018 and 2030;

Railway infra would need an investment of 50 lakh crores between 2018 and 2030;

Railway Station Modernisation will be launched this year.

Indian Railways to be encouraged to invest more in urban and suburban regions

657KM of Metro Rail operational in the country.

11. Banking and Financial Sector

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

12. Electric Vehicles

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
To make electric vehicles affordable, additional IT deduction on 1.5 lakh on interest paid on loan taken to purchase electric vehicles

13. Technology

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