here we go !!! these are the key budget highlights at a glance presented in the Union Budget 19-20 by the Finance Minister Nirmala Sitharaman ;-
Related to Taxation;
Individual, having annual income upto Rs. 5 lakh is not required to pay any income tax.
Aadhar and pan made interchangeable for the purpose of filing returns & pre-filled tax returns forms to be available with information on salary, bank interest and so on.
An additional tax deduction of Rs.1.5 lakh beyond Rs. 2 lakh of interest paid (totaling upto 3.5 lakhs) on loan borrowed upto 31st March, 2020 for purchase of an affordable house valued up to Rs. 45 lakh.
The surcharge on Individuals earning between Rs 2 and Rs 5 crore increased to 25 %, bringing their effective tax rate to about 39% ie (30+25%+ 4% thereon) .
and those earning more than Rs 5 crore a year would pay a surcharge of 37 percent on their tax, This comes up to an effective rate of 42.744% i.e.(30+37%+4% thereon).
Corporate Tax reduced to 25% for companies with turnover up to Rs 400 crore.
Sec 115 QA is extended to listed co. also ie Buyback of shares taxed @ 20%, and for share holder it will remain exempt. earlier it was only for unlisted co.
Start-ups will not be required to justify FMV of their shares issued to Category-II Alternative Investment Funds also. Valuation of shares issued to these funds shall be beyond the scope of income tax scrutiny. It is also proposed to extend the period of exemption of capital gains arising from sale of residential house for investment in start-ups up to 31.3.2021.
Finance Minister proposed to give relief in levy of Securities Transaction Tax (STT) by restricting it only to the difference between settlement and strike price in case of exercise of options.
To make Electric Vehicles affordable to consumers, the Minister said that the Government will provide additional income tax deduction of Rs. 1.5 lakh on the interest paid on loans taken to purchase electric vehicles and lower the GST rateon electric vehicles from 12% to 5%.
inserted a new provision of Sec 194M in the Income tax Act to provide for levy of TDS at the rate of 5% on the aggregate in a year on for contractual work or professional fees by an individual or a HUF ( who are not required to deduct tax at source u/s 194C and 194J ), if such sum, or aggregate of such sums, exceeds Rs 50 lakh in a year.
also such individuals or HUFs shall be able to deposit the tax deducted using their PAN and shall not be required to obtain TAN. this amendment will take effect from 1st September, 2019.
section 194DA of the Act, a person is obliged to deduct tax at source, if it pays any sum to a resident under a life insurance policy, which is not exempt under sub-section (10D) of section 10. it is proposed to provide for TDS at the rate of 5% on income component of such sum paid by the person. this amendment shall be effective from 1st September, 2019.
TDS of 2% on cash withdrawal exceeding ₹1 crore in a year from a bank account to promote less cash economy.
Deposit taking and systemically important non-deposit taking NBFCs can now pay tax in the year they receive interest for certain bad or doubtful debts.
GST – Taxpayers having annual turnover of less than ₹5 crore can now file quarterly returns. Fully automated GST refund module shall be implemented and An electronic invoice system is proposed that will eventually eliminate the need for a separate e-way bill.
Other Matters;
Private players PPP to play a significant role in Railways.
Allowing FDI in aviation, media, insurance intermediaries and animation.
Pension for 3 crore shopkeepers and retailers with turnover less than Rs 1.5 crore.(Pradhan Mantri Karam Yogi Maandhan)
Multiple labour laws to be streamlined into a set of four labour codes.
Govt sets Rs 105000 crore as target from disinvestment in 2019-20.
Cess on petrol, diesel raised by Re 1 per litre.
Study in India programme to attract foreign students. ₹400 crore provided for ‘World Class Institutions’ for FY 2019-20.
No charges or MDR on specified digital mode of payments. These modes are to be compulsorily provided by large businesses.
Sabka Vishwas Legacy Dispute Resolution Scheme proposed for quick closure of service tax and excise related litigations.
A scheme of faceless electronic assessment involving no human interface to be launched this year.
Expand women SHG interest subvention programme to all districts and grant ₹1 lakh loan under MUDRA scheme for one woman in every SHG.
Ensuring Har Ghar Jal to all rural households by 2024 under Jal Jeevan Mission.
Vision for Indian Economy to attain sum of USD 5 trillion in status in few years.
