The most awaited moment has arrived i.e. Union Budget 2019 for the citizens of India. No wonder, many of us were eagerly waiting to know the new tax reforms and how the economic growth of the country will be graphed especially for the common man! Meanwhile, the Union Budget was Presented by Finance Minister Nirmala Sitharaman, on 5th July 2019. Hence, this year it is yet to predict that how the wishes of the common man would be fulfilled in the union budget 2019.
There is a wide belief that the government has taken some stable and secure action to accelerate economic growth and the roots of economic development that will be appreciated by all levels of society.
Here is a look at the most important announcements made in Budget 2019 with regards to personal taxation and its impact –
- Rs 350 cr allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans.
- The government has decided to extend pension benefit to about 3 crore retail traders and shopkeepers whose annual turnover is less then ₹1.5 crore.
- For Non-resident Indians (NRIs) government providing seamless access to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route.
- 2% interest subsidy scheme to benefit about 20% of MSMEs registered under GST.
- A major booster has been proposed for Micro, Small and Medium Enterprises (MSMEs) under which the government is set to provide a loan of Rs 1 crore.
- Now, the legislature authority has decided to consider issuing Aadhaar to NRIs with Indian passports after their arrival in India without the mandatory wait of 180 days:
- NPAs of commercial banks have reduced by over Rs 1 lakh crore over the last year
- PSBs are now proposed to be further provided Rs 17,000 crore of capital to boost credit
- Moreover, the cabinet ministry has Appreciated honest taxpayers of India.
- Government has already moved GST council to lower the GST rate on electric vehicles(EV) from 12% to 5%.
- Also, to make EVs affordable for consumers our Govt will provide additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs.
- The Government decide an aim to simplify tax admin and bring greater transparency along with simulative growth.
- No tax for individual incomes up to Rs 5 lakh.
- Tax revenue has increased over by 78%:
- Additional income tax deduction of Rs 1.5 lakh on the interest paid on loans for EVs.
- To resolve angel tax issue, start-ups who file declarations will not be subjected to scrutiny in valuation.
- Direct tax collection increased by 78%; Tax collection rose from 6.38 lakh crore rupees in 2013-14 to 11.37 lakh crore rupees in 2018.
- A person purchasing an affordable house will now get an enhanced interest deduction up to ₹3.5Lakhs.
- More than 120 crore Indians now have Aadhar card, therefore for ease of tax payers I propose to make PAN card and Aadhar card interchangeable and allow those who don’t have PAN to file returns by simply quoting Aadhar number and use it wherever they require to use PAN.
- 2% TDS on withdrawals of Rs 1 crore in a year from bank accounts for business payments
- Those having annual income of Rs 5 lakh exempt from paying taxes.
- Further simplifying GST filing process. GST tax payer with business under Rs 5 crore only need to file quarterly returns.
- Import of defence equipment is being exempted from basic customs duty.
- To make electric vehicle affordable to consumers, the govt will provide an additional income tax deduction of ₹1.5L on the interest paid on loans taken to purchase an electric vehicle.
- Currently, the lower tax rate of 25% is applicable to firms with annual turnover of Rs 250 crore. I propose to widen this to all companies with annual turnover of up to Rs 400 crore. This will cover 99.3% of all companies.
Therefore, this budget will be fair to each and every class of citizen and will benefit the poor&medium class&will boost India’s development in the 21st century.