Union Finance Minister Nirmala Sitharaman on Friday presented her made her maiden Union Budget Speech in the Lok Sabha. This was also the first Budget of the second Narendra Modi-led government. Nirmala Sitharaman in her maiden budget announced several reliefs for Taxpayers, Home Buyers, Small Businessmen and announced several other initiatives.
Here are some of the Key Highlights from the Union Budget:
10-POINT VISION FOR THE DECADE
- Finance Minister talked about ‘Minimum Government Maximum Governance
- She also set a goal of achieving green Mother Earth and Blue Skies through a pollution-free India
- Expanding Digital India reach and going to every sector of the economy
- She also talked about space missions including the launching og Gaganyan, Chandrayaan, other Space and Satellite programs
- Building physical and social infrastructure
- Water, water management, clean rivers
- Blue economy
- Set a goal of self-sufficiency and export of food-grains, pulses, oilseeds, fruits, and other vegetables
- Talking about the Ayushman Bharat, India will aim to achieve a healthy society with well-nourished women and children.
- Emphasis on MSMEs, Start-ups, Defence manufacturing, automobiles, electronics,
fabs and batteries, and medical devices under Make in India. -
MASSIVE PUSH TO ALL FORMS OF PHYSICAL CONNECTIVITY
- Pradhan Mantri Gram Sadak Yojana to expand Road connectivity
- Industrial Corridors, Dedicated Freight Corridors
- Nirmala Sitharaman also announced Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes
- In the second phase of Bhartamala Project, the government will develop State road networks.
- Rs 50 lakh crore investments needed in Railway Infrastructure during 2018-2030.
- Nirmala Sitharaman informed the Lok Sabha that the 657 kilometers of Metro Rail network has become operational across the country.
MEASURES TO DEEPEN BOND MARKETS
- Stock exchanges to be enabled to allow AA rated bonds as collaterals
- User-friendliness of trading platforms for corporate bonds to be reviewed
- Electronic fundraising platform under the regulatory ambit of SEBI
- Listing social enterprises and voluntary organizations.
- To raise capital as equity, debt or as units like a mutual fund.
- KYC norms for Foreign Portfolio Investors to be made more investor-friendly
- Insurance intermediaries to get 100 pc FDI
- FPIs to be permitted to subscribe to listed debt securities issued by ReITs and
InvITs.
DIRECT TAXES
- Nirmala Sitharaman announced the Tax rate reduced to 25 percent for companies with annual turnover up to Rs 400 crores
- Finance Minister also increased the Surcharge individuals having taxable income from Rs 2 crore to Rs 5 crore. She increased 7% tax on individuals having taxable income 5 crore and above.
- She informed the Lok Sabha that in last 5 years, Direct tax revenue increased by over 78 percent Rs 11.37 lakh crore.
- She also announced that PAN and Aadhar are interchangeable from now while filing IT returns. Those who don’t have PAN can file tax returns using Aadhaar.
AFFORDABLE HOUSING
- Announcing a major relief for home buyers, Nirmala Sitharaman announced the additional deduction up to Rs 1.5 lakhs for interest paid on loans borrowed up to March 31, 2020 for purchase of house valued up to Rs 45 lakh. This will benefit the common man of around Rs 7 lakh over loan period of 15 years.
RELIEF FOR START-UPS
- In a move to solve the Angel Tax Issue, Nirmala Sitharaman proposed that the Start-ups and investors filing requisite declarations with all documents will be subjected to any kind of scrutiny in respect of valuations of share premiums.
- Funds raised by start-ups to not require scrutiny from Income Tax Department
- The government also proposed to set up a portal for the identification, verification of the investor and source.
- Capital gains exemptions from sale of residential house for investment in startups extended till the Financial year 2021.
- Finance Minister also announced to setup Special administrative arrangements for pending assessments and grievance redressals.
INDIRECT TAXES
- Finance Minister announced to increase customs duties on cashew, kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera, etc.
- While Exemptions to various kinds of papers has been now withdrawn
- In a move to promote Indian Book Printers, 5 percent basic customs duty imposed on imported books
- The Government also reduced the Customs duty certain raw materials such as inputs for artificial kidney and disposable sterilized dialyzer and fuels for nuclear power plants, etc.
EXPORT DUTY RATIONALISED
- Increase in special additional excise duty and road and infrastructure cess each
by rupee one per litre on petrol and diesel - Finance Minister also announced to increase Custom duty on gold and other precious metals
EASE OF LIVING
- Speaking in the Lok Sabha, Nirmala Sitharaman said About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme. The Scheme aimed to provides Rs 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors.
- Under Ujala Yojana, approximately 35 crore LED bulbs been distributed that led to saving Rs 18,341 crore annually.
BANKING AND FINANCIAL SECTOR - NPAs of commercial banks reduced by over Rs 1 lakh crore over the last year
- Record recovery of over Rs 4 lakh crore effected over the last four years.
- Domestic credit growth increased to 13.8 percent
- The Government proposed to provide Rs 70,000 crore to PSBs to boost credit
- Reforms to be undertaken to strengthen governance in PSBs
DIGITAL PAYMENTS
- Finance Minister, to discourage the use of case, announced to impose TDS of 2 percent on cash withdrawal exceeding Rs 1 crore in a year from a bank account
- Business establishments with annual turnover more than Rs 50 crore shall offer
low-cost digital modes of payment to their customers with no extra charges.
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