Union Budget of India 2019-20 - Highlights

General

• Fiscal deficit targeted @ 3.4 % in 2019-20
• Rs. 60,000 crore allocated for MNREGA
• ESIC cover limit increased to Rs. 21,000
• Mega Pension Scheme for unorganised labour, Rs. 3,000 p.m. after age of 60 Yrs.
• Single window clearance for filmmakers
• National Centre for ‘AI’  in 9 priority areas and a National Portal

Infrastructure

• 1 lakh digital villages in next 5 years
• Capex for the Railways increased to Rs. 1.59 Lakh Cr.

Agriculture

• Rs. 6,000 per head assured annual income support for farmers with <2 hectares of land
• 2% interest subvention for farmers affected by natural calamities, extra 3% on timely repayment
• 2% interest subvention for animal husbandry and fisheries through Kisaan Credit Cards

Health

• 22nd AIIMS in Haryana
• Rs. 2 Cr. more LPG connections to rural households under Ujjwala Yojana
• Rs. 4,227 crore additional funds for ICDS

Startups

• 25% of sourcing for government projects from SMEs, of which 3% from women entrepreneurs
• GST registered MSMEs to get 2% interest subvention on Rs. 1 crore loan

Direct Tax

• Processing of Income Tax returns  within 24 hours, to be implemented within two years
• Full Rebate for income up to Rs. 5,00,000  after all deductions
• Standard Deduction increased to Rs. 50,000 for salaried individuals
• No TDS on Bank interest & Post office savings up to Rs. 40,000
• TDS threshold for home rent increased from Rs. 1.8 Lakh to Rs. 2.4 Lakh
• Capital Gain tax exemption u/s 54 up to Rs. 2 crore available on 2 houses
• Tax exemption on notional rent of 2 Self Occupied houses
• Gratuity limit extended to Rs. 30 lakhs

Indirect Tax

• Indian Customs to fully digitize Exim transactions and leverage RFID for logistic
• Customs duty abolished on 36 capital goods

Source: Speech of Finance Minister at Indian Parliament on Feb 01, 2019

Write us at connect@rakchamps.com for further information or any clarification