Page 52 - BF Cover February 2019

BUDGET

Interim Union Budget 2019 highlights:

Union Finance Minister Piyush Goyal presented an Interim comprising over 90% of GST payers, will be allowed to
Budget for 2019 in Parliament. An Interim Budget usually file quarterly returns
doesn't list out new schemes or doesn't unveil any policy ♦ Direct tax collections from 6.38 lakh crore rupees in
measures. The government will present the vote on account 2013-14 to almost 12 lakh crore rupees; tax base up
for the next four-to-five months. A full-fledged Budget will from Rs 3.79 crore to Rs 6.85 crore. 99.54% returns
be presented after the House reassembles after the general have been accepted without any scrutiny. In January
election. 2019, GST collections has crossed 1 lakh crore rupees.
Here are the highlights from Mr. Goyal's budget ♦ GST has been continuously reduced, resulting in relief
speech: of 80,000 crore rupees to consumers; most items of
daily use for poor and middle class are now in the 0%-
♦ Individual taxpayers with annual income up to 5 lakh
5% tax bracket.
rupees to get full tax rebate.
♦ Individuals with gross income up to 6.5 lakh rupees will ♦ Two per cent interest subvention on loan of 1 crore for
GST registered MSME units.
not need to pay any tax if they make investments in
♦ Group of Ministers examining how prospective house
provident funds and prescribed equities.
♦ Tax slabs for those with income over Rs 5 lakh remain buyers can benefit under GST.
♦ GST is the undoubtedly the biggest taxation reform
unchanged
♦ Standard tax deduction for salaried persons raised from implemented since Independence; through tax
consolidation, India became one common market;
40,000 rupees to 50,000 rupees.
♦ TDS threshold on rental income raised from 1.8 lakh to inter-state movements became faster through e-way
2.4 lakh rupees. bills, improving Ease of Doing Business.
♦ "Around 3 crore middle-class taxpayers will get tax ♦ Within almost two years, almost all assessment and
exemption due to this measure," the finance minister verification of IT returns will be done electronically by
said. * Gratuity limit increased from 10 lakh to 30 lakh an anonymized tax system without any intervention by
rupees. tax officials.
♦ TDS on interest income from deposit in banks and post- ♦ "Cost of data and voice calls in India is now possibly the
offices up to Rs 40,000 against Rs 10,000 earlier. lowest in the world; mobile and mobile part
♦ Benefit of rollover of capital tax gains to be increased manufacturing companies have increased from 2 to
from investment in one residential house to that in two 268," he said.
residential houses, for a taxpayer having capital gains ♦ Single window clearance for filmmaking to be made
up to 2 crore rupees; can be exercised once in a available to Indian filmmakers, anti-camcording
lifetime. provision to be introduced to Cinematography Act to
♦ Benefits under Sec 80(i)BA being extended for one combat film privacy.
more year, for all housing projects approved till end of ♦ Allocation for North Eastern region proposed to be
2019-2020. increased to Rs 58,166 crore in this year a rise of over
♦ "We are poised to become a 5 trillion dollar economy 21% from the previous year
in the next five years, we aspire to become a 10 trillion ♦ Increased allocation for Rashtriya Gokul Mission to 750
dollar economy in the next eight years," Goyal said. crore in current year.
♦ Businesses with less than Rs. 5 crore annual turnover, ♦ Two per cent interest subvention to farmers pursuing

52 | 2019 | FEBRUARY | BANKING FINANCE