What are the Key Highlights of Union Budget 2019?
With the resolute spirit of Jai Jawan, Jai Kisan, Jai Garib Insaan, the Honourable Finance Minister of India Sh. Piyush Goyal presented the 6th and the final Interim Budget 2019 today in the parliament. The budget was largely ‘tax-friendly’ and ‘pro-poor’ in many respects, as it addressed to mainly the working class population of India. Emphasizing on fiscal consolidation, the government discussed the key aspects of economic growth today in the parliament. It also discussed the main achievements of the government as regards economic development.
Addressing the key issues of the economy, the government has stated that inflation has been brought down to 4.6%, with 2.19% in December 2018. Besides, the fiscal deficit has been reduced to 3.4% of GDP and the current account deficit to 2.5% of GDP.
Apart from that government has introduced in the budget a number of measures directed towards agriculture growth, employment & skill development, infrastructural growth and healthcare. The ruling government, which is keen on accomplishing its “Mission 2019”, had also discussed its track record of past 5 years at the Budget Session.
So, here are the high-tides of the Union Budget 2019.
#1. What decisions have been taken regarding Income Tax?
The government has introduced the following decisions in respect of Income Tax:
- Taxpayers having annual income â‚¹5 lakhs shall pay no income tax.
- Individuals with gross income up to â‚¹6.5 lakh need to pay no tax if they make investments in provident funds and prescribed equities u/s 80c.
- The threshold for presumptive income scheme (8% of turnover): Raised from â‚¹1 crore to 2 crores.
- Standard deduction raised from â‚¹ 40,000-50,000.
- No TDS to be deducted on interest received up to â‚¹ 40,000 on Bank/Post office deposits.
- No TDS to be deducted on rent received up to â‚¹2.40 lakhs.
- Income tax exempt on House property on 2 homes u/s 54.
- Section 80IBA: Income tax relief to real estate projects registered before 30 March 2020.
#2. What are the key achievements with regard to Direct Tax?
Throwing light on the Direct Tax System simplification, the government told that-
- Direct tax collection has increased from â‚¹6.38 lakh crore to 12 lakh crore, from 2014-19.
- Over 99.54% Income tax returns are now filed accepted without any scrutiny.
- Besides, the number of income tax returns filed has increased from 3.76 to 6.85 crores, from 2014-19.
- Direct Tax Rate for companies of turnover above â‚¹ 250 cr has been kept at 25%.
#3. What are the highlights with respect to GST?
The government has also presented a few key points with respect to GST-
- MSMEs having GST registration shall get 2% interest subsidy on up to â‚¹1 crore loan.
- High indirect tax rates have been rationalized in the GST regime.
- GST @ 12% is chargeable on cinema tickets of up to â‚¹100 and 18% on cinema tickets above â‚¹100.
- All those taxpayers having GST registration under composition scheme will need to file one annual return. They need not fulfil quarterly GST return filing procedure.
- Taxpayers with turnover up to â‚¹ 5 crores need to file quarterly GSTR-1.
- The government has told that GST monthly average collection is â‚¹ 97,000 crores.
- GST collection of January 2019 has been estimated above â‚¹ 1 lakh crores.
- Besides, over 80,000 crore consumers have been benefited from the GST rate reduction, as per the government.
#4. How much has Demonetisation achieved?
The government has also discussed the achievement of its Demonetisation move, it has taken in 2016. It has told-
- Over 3.38 lakh shell companies have been deregistered & their directors have been disqualified.
- So far, undisclosed income to the tune of â‚¹1.30 lakh crore has been traced.
- Undisclosed assets worth â‚¹ 50,000 crores have been traced.
- â‚¹3 lakh crore recovered in favour of banks & creditors.
- RERA registration & Benami Transaction Act have resulted in fair auctioning of gold & spectrum.
Now you can also Download E-Startup Mobile App and Never miss the latest updates relating to your business.