Budget 2019: Key Updates

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Finance Minister Nirmala Sitharaman presents Union Budget 2019 in Lok Sabha today. Here are some Important announcements:

 

  • Surcharge on individuals having taxable income from 2 crore – 5 crore and 5 crore and above to be enhanced, so that effective tax rate will increase by around 3% and 7% respectively

 

  • Business establishments with annual turnover more than 50 crore rupees may offer low-cost digital payments; no charges or merchant discount rates to be imposed on customers or merchants for these

 

  • To discourage business payments in cash, Tax Deduction at Source of 2% to be levied on cash withdrawal exceeding 1 crore rupees in a year from a bank account

 

  • PAN and Aadhaar to be made interchangeable for convenience of tax payers; Income Tax returns can now on be filed using Aadhaar number, if PAN card not available

 

  • To provide further impetus to affordable housing, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed upto 31 Mar, 2020 for purchase of house up to 45 lakhs

 

  • A new series of coins of denominations 1 rupee 2 rupee 5 rupee 10 rupee & 20 rupee will be made available for public shortly

 

  • Aadhaar card for NRIs with Indian passports to be issued after their arrival in India, without waiting for the mandatory 180 days

 

  • All companies having annual turnover of 400 crores, will now be under the bracket of 25%. This will cover 99.3% of all the companies

 

  • lower corporate tax rate of 25% applicable only to companies with annual turnover up to 250 crores

 

  • Fully automated GST Refund module shall be implemented; multiple tax ledgers to be replaced by one; invoice details to be captured in a central system

 

  • Strategic disinvestment of select Central Public Sector Enterprises will continue on priority; strategic disinvestment of Air India will re-initiate; 1 lakh 5000 rupees is disinvestment target for 2019-20