Key Highlights of Budget Proposals 2019-II

BUDGET 2019-II

INCOME TAX PROPOSAL- INDIVIDUAL

• Those hav­ing annu­al income of Rs 5 lakh exempt from pay­ing taxes
• Addi­tion­al income tax deduc­tion of Rs 1.50 lakh on the inter­est paid on loans for Elec­tron­ic Vehicle
• Inter­est sub­ven­tion for up to Rs 2.5 lakh on buy­ing elec­tric vehicle
• Pro­pose to allow an addi­tion­al tax deduc­tion of Rs 1.5 lakh on inter­est paid on hous­ing loans for self-occu­pied house own­ers: [This means will get tax relief up to Rs 3.5 lakh on inter­est paid ]
• Pro­pose to extend peri­od of exemp­tion of cap­i­tal gains aris­ing from sale of res­i­den­tial house for invest­ment in star­tups to 31–3‑2021
• ITR can be filed with­out PAN by quot­ing Aadhaar

INCOME TAX PROPOSAL-BUSINESS

• Levy TDS of 2% on cash with­draw­al exceed­ing Rs 1 crore a year from a bank account
• Busi­ness estab­lish­ments with annu­al turnover of Rs 50 crore will offer low-cost dig­i­tal mode of pay­ments to cus­tomers and no charges or mer­chant dis­count rates shall be imposed on cus­tomers as well as merchants
• Cor­po­rate tax rate @ 25% for com­pa­nies hav­ing ₹ 400 crore sales turnover, cov­er­ing 99% companies

OTHERS HIGHLIGHTS

• Direct tax rev­enue has grown 78% from 2014 to 2019
• 2% sub­ven­tion to GST reg­is­tered MSME on loan interest 
• Pro­pos­al of Social Stock Exchange for list­ing of Social and Char­i­ta­ble organizations
• 75000 entre­pre­neurs to be trained
• 9.3 crores toi­let con­struct­ed since 2014 under Swach Bharat Yojna
• Aad­haar for NRI’s with Indi­an Passport
• GST rate to be reduced on elec­tric vehi­cle from 12% to 5%. 
• Decrease of excise duty on petrol