Page 45 - Banking Finance August 2019

BUDGET HIGHLIGHTS

without obtaining approval of the supervisory Defence
officer. Y Defence equipment not manufactured in India
Y No scrutiny of valuation of shares issued to Category-II exempted from basic customs duty.
Alternative Investment Funds.
Y Relaxation of conditions for carry forward and set off Other Indirect Tax provisions
of losses. Y Export duty rationalised on raw and semi-finished
leather
NBFCs Y Increase in Special Additional Excise Duty and Road and
Y Interest on certain bad or doubtful debts by deposit Infrastructure Cess each by Rs. 1 per litre on petrol and
taking as well as systemically important non-deposit diesel
taking NBFCs to be taxed in the year in which interest Y Custom duty on gold and other precious metals
is actually received.
increased
Y Legacy Dispute Resolution Scheme for quick closure of
International Financial Services Centre (IFSC)
pending litigations in Central Excise and Service tax from
Y Direct tax incentives proposed for an IFSC: pre-GST regime
o 100 % profit-linked deduction in any ten-year block
within a fifteen-year period.
Grameen Bharat/Rural India
o Exemption from dividend distribution tax from Y Ujjwala Yojana and Saubhagya Yojana have transformed
current and accumulated income to companies and the lives of every rural family, dramatically improving
mutual funds.
ease of their living.
o Exemptions on capital gain to Category-III Y Electricity and clean cooking facility to all willing rural
Alternative Investment Funds (AIFs).
families by 2022.
o Exemption to interest payment on loan taken from Y Pradhan Mantri Awas Yojana – Gramin (PMAY-G) aims
non-residents.
to achieve "Housing for All" by 2022:
o Eligible beneficiaries to be provided 1.95 crore
Securities Transaction Tax (STT)
houses with amenities like toilets, electricity and
Y STT restricted only to the difference between
LPG connections during its second phase (2019-20
settlement and strike price in case of exercise of options.
to 2021-22).
Y Pradhan Mantri Matsya Sampada Yojana (PMMSY)
Indirect Taxes
o A robust fisheries management framework through
Make in India
PMMSY to be established by the Department of
Y Basic Customs Duty increased on cashew kernels, PVC,
Fisheries.
tiles, auto parts, marble slabs, optical fibre cable, CCTV
o To address critical gaps in the value chain including
camera etc.
infrastructure, modernization, traceability,
Y Exemptions from Custom Duty on certain electronic production, productivity, post-harvest
items now manufactured in India withdrawn. management, and quality control.
Y End use based exemptions on palm stearin, fatty oils Y Pradhan Mantri Gram Sadak Yojana (PMGSY)
withdrawn. o Target of connecting the eligible and feasible
Y Exemptions to various kinds of papers withdrawn. habitations advanced from 2022 to 2019 with 97%
Y 5% Basic Custom Duty imposed on imported books. of such habitations already being provided with all
weather connectivity.
Y Customs duty reduced on certain raw materials such as:
o Inputs for artificial kidney and disposable sterilised o 30,000 kilometers of PMGSY roads have been built
dialyser and fuels for nuclear power plants etc. using Green Technology, Waste Plastic and Cold Mix
Technology, thereby reducing carbon footprint.
o Capital goods required for manufacture of specified
electronic goods. o 1,25,000 kilometers of road length to be upgraded

BANKING FINANCE | AUGUST | 2019 | 45