Union Budget 2019: Key Highlights

• Posted By Amritesh
• On July 5th, 2019
• Comments: one response

The Union Budget 2019 was presented in the parliament by the Union Finance Minister Nirmala Sitharaman. This is the first budget presented by the recently re-elected Government. The Budget did not spring any major surprises but did highlight the Government’s intent to strive towards becoming 5 trillion economy in the coming few years. Although, no tax rebates was announced but the benefits announced in the interim budget were retained for the Financial Year.

Income Tax Slab Rates For Financial Year 2019-20

In the maiden budget presented by the new Finance Minister clearly highlighted Government’s intent to promote Digital Economy. Effort has also been made to attract Foreign Direct Investment (FDI) which would boost economy growth.

#Surcharge increased on Individual Income slabs of Rs 2-5 crore and above Rs 5 crore by 3% and 7% respectively.

#Ease in Payment of Tax, PAN Card and Aadhar Card interchangeable enabling Individuals without PAN card to file income tax returns.

#Custom Duty increased to 12.5% from 10% on gold & precious metals.

#Additional Deduction of Rs 1.5 lakhs on interest paid on home loans borrowed up to 31^st March, 2020. On houses costing up to Rs 45 lakhs.

#Diesel and Petrol price to increase by Rs 2/litre as Special Additional Excise Duty (SAED) and Road & Infrastructure Cess is increased by Re 1 each.

#GST to be lowered from existing 12% to 5% on Electric Vehicles (EV).

#Tax Deduction of Rs1.5 lakhs on interest payment towards loan taken for purchase of Electric Vehicles.

#Fiscal Deficit to be brought down from 3.4% to 3.3% in 2019.

#Companies with annual turnover under Rs 400 crores will now fall in the 25% corporate tax bracket.

#Public Sector Banks (PSBs) to be extended Rs 70,000 crores to improve credit and capital.

#RBI to strictly regulate the operation of NBFCs and Housing Finance Sector.

#TDS of 2% to be levied on Cash Withdrawals exceeding Rs 1crore from Bank Account in a year.

#Low cost digital payments facility for businesses with turnover less than Rs 50 crore.

#Pension Benefit to be extended to 3 crore small traders and shop keepers with turnover less than Rs 1.5 crore.

This article is for informational purpose only. Readers are advised to research further to have detailed knowledge on the topic. It is very important to do your own analysis and consult an Expert before arriving at any conclusion.