Union Budget 2019-20: Sector-wise highlights
Highlights
- Additional deduction of up to Rs 1.5 lakh for interest paid on loans for purchase of house of value up to Rs 45 lakh
- Those who do not have PAN will be allowed to file income tax return (ITR) using their Aadhaar number
Finance minister Nirmala Sitharaman with her team before presenting the Union Budget 2019-20 (File photo) NEW DELHI: The Union Budget 2019-20, presented by finance minister Nirmala Sitharaman on Friday lays out the roadmap for a 'New India'. It reflects upon economic growth, employment generation, development in infrastructure and social sector.
Here is how it will impact different sectors:
Middle class
- Additional deduction of up to Rs 1.5 lakh for interest paid on loans for purchase of house of value up to Rs 45 lakh
- PAN and Aadhaar will become interchangable. Those who do not have PAN will be allowed to file income tax return (ITR) using their Aadhaar number.
- Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase electric vehicles
Youth
- New Education Policy will transform the higher education system of India to one of the best global education systems
- National Research Foundation has been created to fund, co-ordinate and promote research
- 'Study in India' Programme to help India attract foreign students to make India a global higher education hub
- Setting up 'Higher Education Commission of India' to promote greater autonomy and focus on academic outcomes
- Setting up of National Sports Education Board for development of sportspersons under Khelo India Scheme
Women Entrepreneurs
- To encourage women enterprise, women self-help group (SHG) interest subvention programme to be expanded to all districts
- Every verified women SHG member having a Jan Dhan Bank Account, to be allowed an overdraft of Rs 5,000
- One woman in every SHG to be made eligible for a loan up to Rs 1 lakh under the Mudra Scheme
Small Business
- Under the Interest Subvention Scheme, Rs 350 crore has been allocated for 2 per cent interest subvention for all GST registered MSMEs on fresh or incremental loans
- Creation of payment platform for MSMEs to enable filing of bills and payment thereof, to eliminate delay in payment
- Pension benefit extended to three crore retail traders and shopkeepers with annual turnover of up to Rs 1.5 crore, under Pradhan Mantri Karam Yogi Maandhan Scheme
Farmers
- Pradhan Mantri Matsya Sampada Yojana to establish robust fisheries management framework to address critical gaps in value chian
- Dairying through co-operatives to be encouraged by creating infrastructure for milk procurement, processing, and marketing
- Creation of 10,000 new farmer producer organisations to ensure economies of scale for farmers over next 5 years
- Innovative pilots of 'Zero Budget Farming' to be replicated across the country for doubling farmers income
Start Ups
- Start ups not to be subject to any scrutiny in respect of valuations of share premiums to resolve 'angel tax' issue
- E-verification to resolve the issue of establishing identity of the investor and source of his funds
- Start ups are no longer required to justify fair market value (FMV) of their shares issued to Category-II AIFs (alternate investment funds) to protect them from unnecessary income tax scrutiny
- Relaxation in conditions for carry forward and set off of losses
- Exemption of capital gains arising from sale of residential house for investment in start ups, extended up to March 31, 2021
Finance sector
- Public sector banks to be further provided Rs 70,000 crore capital to boost credit for a strong impetus to the economy
- Regulation authority over the housing finance sector to return to RBI from NHB to ensure efficient and conducive regulation of the housing sector
- Strengthening the regulatory authority of RBI over NBFCs to ensure robust regulation
Here is how it will impact different sectors:
Middle class
- Additional deduction of up to Rs 1.5 lakh for interest paid on loans for purchase of house of value up to Rs 45 lakh
- PAN and Aadhaar will become interchangable. Those who do not have PAN will be allowed to file income tax return (ITR) using their Aadhaar number.
- Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase electric vehicles
Youth
- New Education Policy will transform the higher education system of India to one of the best global education systems
- National Research Foundation has been created to fund, co-ordinate and promote research
- 'Study in India' Programme to help India attract foreign students to make India a global higher education hub
- Setting up 'Higher Education Commission of India' to promote greater autonomy and focus on academic outcomes
- Setting up of National Sports Education Board for development of sportspersons under Khelo India Scheme
Women Entrepreneurs
- To encourage women enterprise, women self-help group (SHG) interest subvention programme to be expanded to all districts
- Every verified women SHG member having a Jan Dhan Bank Account, to be allowed an overdraft of Rs 5,000
- One woman in every SHG to be made eligible for a loan up to Rs 1 lakh under the Mudra Scheme
Small Business
- Under the Interest Subvention Scheme, Rs 350 crore has been allocated for 2 per cent interest subvention for all GST registered MSMEs on fresh or incremental loans
- Creation of payment platform for MSMEs to enable filing of bills and payment thereof, to eliminate delay in payment
- Pension benefit extended to three crore retail traders and shopkeepers with annual turnover of up to Rs 1.5 crore, under Pradhan Mantri Karam Yogi Maandhan Scheme
Budget 2019: What's costlier, what's cheaper
Finance minister Nirmala Sitharaman on Friday presented her maiden budget and the first of the Modi government in its second term. Petrol, diesel, cigarettes, hookah, gold, silver, fully-imported cars and split air-conditioners will become expensive. While, electric vehicle components, camera module, mobile phones chargers, import of defence equipment will become cheaper.
Farmers
- Pradhan Mantri Matsya Sampada Yojana to establish robust fisheries management framework to address critical gaps in value chian
- Dairying through co-operatives to be encouraged by creating infrastructure for milk procurement, processing, and marketing
- Creation of 10,000 new farmer producer organisations to ensure economies of scale for farmers over next 5 years
- Innovative pilots of 'Zero Budget Farming' to be replicated across the country for doubling farmers income
Start Ups
- Start ups not to be subject to any scrutiny in respect of valuations of share premiums to resolve 'angel tax' issue
- E-verification to resolve the issue of establishing identity of the investor and source of his funds
- Start ups are no longer required to justify fair market value (FMV) of their shares issued to Category-II AIFs (alternate investment funds) to protect them from unnecessary income tax scrutiny
- Relaxation in conditions for carry forward and set off of losses
- Exemption of capital gains arising from sale of residential house for investment in start ups, extended up to March 31, 2021
Modi-2.0 Budget: Petrol, diesel price hiked, customs duty raised on 75 items, new tax on super-rich
The Modi 2.0 government's budget on Friday hiked petrol and diesel prices, raised import duty on dozens of items and increased tax on super-rich as it sought to spur growth through higher spending & sops for startups, housing and corporates. Nirmala Sitharaman announced further opening up of aviation, insurance and media sectors to foreign investment.
Finance sector
- Public sector banks to be further provided Rs 70,000 crore capital to boost credit for a strong impetus to the economy
- Regulation authority over the housing finance sector to return to RBI from NHB to ensure efficient and conducive regulation of the housing sector
- Strengthening the regulatory authority of RBI over NBFCs to ensure robust regulation
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