Jul 05, 2019 02:05 PM IST | Source: Moneycontrol.com
Budget 2019 LIVE Updates: Re 1 cess/litre on petrol, diesel; higher tax on super rich
Live updates of FM Nirmala Sitharaman's maiden Aam Budget, first for the Modi government 2.0, and the subsequent developments
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Saurabh Mukherjee to CNBC-TV18: We are the least liquid of the world's stock market so it was about time the government considered increasing the free float. So the increase in minimum public shareholding to 35 percent from 25 percent is a welcome move.
FM Nirmala Sitharaman’s press conference on Budget 2019 has begun.
WATCH LIVE | FM Nirmala Sitharaman's press conference
The banking sector has been beset with bad loans that have risen due to slow growth and delays in project implementation.
The latest Rs 70,000 crore fund injection is part of the government’s road map to adequately bolster the state-owned banks’ capital base.
Analysis of the tax on super-rich individuals
- With the additional surcharge, individuals with income between Rs 2 to 5 crore will pay an effective tax rate of 39 percent
- individuals over Rs 5 crore will pay an effective peak tax rate of 42.7 percent
The peak rate is closer to or even higher than the peak tax rates in some countries such as the US
Moneycontrol’s M Saraswathy says: The customs duty on the indoor and outdoor unit of split ACs has been increased from 10 percent to 20 percent. However, the prices of products may not see a significant change since the customs duty on finished products in the AC category is already at 20 percent. Only a few companies that import units separately and assemble them in India will be impacted.
Details that you may have missed out:
1. In order to discourage the practice of avoiding Dividend Distribution Tax (DDT) through buyback of shares by listed companies, it is proposed to provide that listed companies shall also be liable to pay additional tax at 20% in case of buyback of share, as is the case currently for unlisted companies.
2. Incentives to National Pension System (NPS) subscribers. it is proposed to,-
- increase the limit of exemption from the current 40% to 60% of payment on final withdrawal from NPS;
- allow a deduction for employer’s contribution up to 14% of salary from the current 10%, in the case of Central Government employee
- allow deduction under section 80C for the contribution made to Tier II NPS account by Central Government employees.
3. To discourage the practice of making business payments in cash, a 2% tax to be levied on cash withdrawal exceeding Rs 1 crore in a year from a bank account.
FM Nirmala Sitharaman will be holding a press conference shortly. Stay tuned.
PM Modi has concluded his address.
The Budget for New India has a roadmap to transform the agriculture sector of India: PM Modi
PM Modi on Budget
This Budget will make industries and industrialists stronger, strengthen education, ensure women empowerment, and take even initiatives like space and related research to the common man. This Budget is a Green Budget in which environment, electric mobility, the solar sector has been at the forefront. The country has left disappointments behind and is now progressing. This Budget is one of hope, faith and desire ('Aasha, Vishwas and Akansha') and will prove an important link in the making of a 'New India'.
The Budget for New India is one of hope and it is a Budget that will boost India's development in the 21st century: PM Modi
PM Modi: Ye desh ko samridh aur jan-jan ko samarth banane wala Budget hai. Iss Budget se gareeb ko bal milega. Yuva ko behtar kal milega.
Former finance minister Arun Jaitley: Congratulations to the Honourable PM Narendra Modi and FM Nirmala Sitharaman for Budget 2019-20. The Budget besides being a policy document for boosting growth, serves the larger interest of all sectors of the economy.
Prime Minister Narendra Modi is sharing his thoughts on the Union Budget.
FY20 GST revenue target has been set at Rs 6.6 lakh crore including CGST of Rs 5.26 lakh crore, CNBC-TV18 reports.
The FY20 fiscal deficit target has been cut to 3.3% from 3.4%, CNBC-TV18 reports.
Here's a list of some other key targets for FY20.
- The government expects Rs 57,480 cr from PSU companies' dividends in FY20
- Aim to get Rs 1.06 lakh cr from RBI, banks' dividend in FY20
- Aims to buyback govt bonds worth Rs 50,000 cr in FY20
- Non-tax revenue target at Rs 3.13 lakh cr
- Net tax revenue target at Rs 6.49 lakh cr
- Gross tax revenue target at Rs 24.6 lakh cr
- Aims to get Rs 3 lakh cr from small savings schemes
- Net borrowing target at Rs 4.73 lakh cr
- Gross borrowing target at Rs 7.1 lakh cr
PSU bank shares jump up to 5% as government to infuse Rs 70,000 crore
Shares of public sector banks gained up to 5 percent today after FM Nirmala Sitharaman announced fund infusion of Rs 70,000 crore into PSBs to strengthen them and enhance lending capacity.
In her analysis of the PSU Bank recapitalisation package and NBFC measures, Former SBI chief Arundhati Bhattacharya tells CNBC-TV18's Udayan Mukherjee that about Rs 30,000 crore of the Rs 70,000 recapitalization will be used as growth capital by banks.
On NBFCs, she believes one good measure announced was providing RBI with more power. RBI can do a quick stress test of NBFCS and reassure markets on their actual strength and weakness and measures to ease them over a period of time. RBI can help assuage the uncertainty on that front, she believes.
Moneycontrol’s Sachin Pal says: Increase in customs duty on PVC would impact the margins of pipe manufacturers. However, backward integrated players like Finolex Industries stand to benefit from this move.
The fiscal deficit this year is 3.3 percent, brought down from 3.4 percent.
Lok Sabha has been adjourned till Monday (July 8).
Finance Minister Nirmala Sitharaman has concluded her maiden Union Budget presentation. This was the first Budget of the second Narendra Modi-led government. The speech lasted for over two hours.
She has introdcued The Finance (No.2) Bill, 2019 in the Lower House.
Sitharaman has laid on the Table of the House, statements on medium-term fiscal policy cum fiscal policy strategy and macro-economic framework.
Yogesh Chande, Partner, Shardul Amarchand Mangaldas on recapitalisation of PSU Banks:
Capital is definitely core to banks for expanding credit, earning interest and growing their balance sheets, so that they can drive economic activities. The recapitalisation was needed and is a timely impetus. However, some radical changes like relaxing the statutory requirement of Government to hold not less than 51 percent of the paid up capital in PSU banks should have been considered.
The government proposes an increase in customs duty on gold and other precious metals to 12.5 percent and a special additional excise duty of Re 1/Litre on petrol and diesel.
A 5 percent customs duty on imported books and increase on auto parts, synthetic rubber, PVC, vinyl flooring and tiles.
GST rates have been eased with a relief of Rs 92,000 crore provided during the year. Further measures are being worked out to ease filing returns and tax compliance. A simplified single monthly return is now being ruled out. Taxpayers with an annual turnover of less than Rs 5 crore will have to file only quarterly returns, she says.