Page 49 - Banking Finance August 2019

BUDGET HIGHLIGHTS

Technology Areas 2014-19.
Y Scheme to invite global companies to set up mega- Y Structural reforms in indirect taxation, bankruptcy and
manufacturing plants in areas such as Semi-conductor real estate carried out.
Fabrication (FAB), Solar Photo Voltaic cells, Lithium Y Average amount spent on food security per year almost
storage batteries, Computer Servers, Laptops, etc doubled during 2014-19 compared to 2009-14.
o Investment linked income tax exemptions to be Y Patents issued more than trebled in 2017-18 as against
provided along with indirect tax benefits. the number in 2014.
Achievements during 2014-19 Y Ball set rolling for a New India, planned and assisted by
Y 1 trillion dollar added to Indian economy over last 5 the NITI Aayog.
years (compared to over 55 years taken to reach the
first trillion dollar). Roadmap for future
Y Simplification of procedures.
Y India is now the 6th largest economy in the world,
compared to 11th largest five years ago. Y Incentivizing performance.
Y Indian economy is globally the 3rd largest in Purchasing Y Red-tape reduction.
Power Parity (PPP) terms. Y Making the best use of technology.
Y Strident commitment to fiscal discipline and a Y Accelerating mega programmes and services initiated
rejuvenated Centre-State dynamic provided during and delivered so far. T

Union Budget 2019 Major Amendments

1. Increase in surcharge on Super Rich Individuals- Those having taxable income from 2cr. to 5cr. surcharge of 25% &
above 5cr. surcharge of 37% instead of pre-budget 15% above 1cr.

Analysis

Taxable income level (in Rs.) Pre-budget Post-budget Increase in tax rates
Upto 5Lakhs NIL NIL No Change
Above 5 Lakhs to 10 Lakhs 20.80% 20.80% No Change
Above 10 Lakhs to 50 Lakhs 31.20% 31.20% No Change
Above 50 Lakhs to 1Cr. 34.32% 34.32% No Change
Above 1Cr.to 2Cr. 35.88% 35.88% No Change

Above 2Cr.to 5Cr. 35.88% 39% 3.12%
Above 5Cr. 35.88% 42.74% 6.86%

2. Amendment to Sec 43B- interest on any loan or borrowing from a deposit taken from NBFC or systemically important
non-deposit taken from NBFC allowed as deduction in PGBP only on actual payment basis.
3. Amendment to Sec 56- meaning of venture capital fund include special fund of category II Alternate investment fund
regulated by SEBI.
4. New benefit of deduction U/S 80EEA- Interest on loan taken from financial institution for the purpose of acquisition
of a residential house property( stamp duty value up to 50 lakhs) allowed as deduction up to Rs. 1.5Lakhs Applicable
to individual not having any residential house property at the time of taking loan

BANKING FINANCE | AUGUST | 2019 | 49