Tax Related Information in Budget 2019

Tax Related Information in Budget 2019

Direct tax

  1. No income tax, if the annual total income is less than 5 lakhs.
  2. Increase in surcharge for taxable income, Rs. 2 crore to Rs. 5 crore and Rs. More than 5 million.
  3. Corporate tax @ 25% for companies with annual turnover of upto Rs 400 crore.
  4. ‘Angeal tax’ issue has been solved – the start-up and investors are not subject to any inquiry regarding the declaration of their returns and giving information – in relation to share premium valuation.
  5. Funds raised by start-ups will not have to do any investigation.
  6. Discounted capital gains from the sale of residential house for investment in extended start up till 31/03/2021
  7. E-Verification Mechanism to establish the identity of the source of investors and funds.
  8. For interest paid on loan – Rs. An additional deduction up to 1.5 lakh, where the purchase price is upto Rs 45 lakh.
  9. For purchase of electric vehicle, interest on loan is Rs. Additional income tax deduction of 1.5 lakhs
  10. The exchange rate of PAN and base – IT returns can be filed using basis instead of PAN
  11. The information collected from banks, stock exchanges etc. has been pre-file with respect to income and deductions such as salary, capital gains, TDS etc.
  12. Faceless e-Assessment to be implemented in a phased manner. Notices are also issued electronically.
  13. One year from the bank account for business payment – Rs. TDS @ 2% will be deducted on cash withdrawal of more than 1 crore.
  14. Business establishments with an annual turnover of more than Rs. 50 crores will offer low cost digital media to their customers and no charges or merchant discount rates will be charged on customers and merchants.
  15. High tax boundary to start prosecution for filing returns

Indirect tax

  1. Parts of electric vehicles have been exempted from customs duty.
  2. 5% original customs duty was imposed on import of books.
  3. Import of defense equipment exempted from basic customs duty.
  4. Customs duty on gold and other precious metals increased from 10% to 12.5%.
  5. Excise duty on petrol and diesel increased by Rs. 1 per liter.
  6. Legacy Dispute Resolution Scheme allows quick closing of lawsuits pending before the pre-GST regime.

General Highlights in Budget 2019

  1. Benefits of pension to 3 crore retail traders and shopkeepers with less turnover less than 1 crore – Prime Minister Karam Yogi Mandi Yojana
  2. To enable payment of platform bills and its payment for MSMEs.
  3. 2% interest subvention for all GST registered MSMEs on all fresh or incremental loans.
  4. Payment ecosystem for transport based on the National Common Mobility Card (NCMC).
  5. 100% FDI for insurance intermediaries
  6. Local sourcing norms for FDI in single brand retail sector will be made easier.
  7. Meeting of annual global investors in India is organized by using the National Investment and Infrastructure Fund (NIIF) to get global players to come and invest in India.
  8. Social Stock Exchange, an electronic fund raising platform – proposed to be listed under the regulator of SEBI to list social enterprises and voluntary organizations.
  9. Public share in listed companies increased from 25% to 35%.
  10. New Space India Limited will be included to tap the R & D benefits made by ISRO.
  11. Power and clean cooking facility to all interested rural households by 2022.
  12. Pradhan Mantri Awas Yojana – Accommodation for all up to 2022.
  13. KYC norms for foreign portfolio investors to be investor-friendly.
  14. Repeating zero budget farming all over the country.
  15. Water supply to all rural households by 2024
  16. NRI portfolio investment scheme route is proposed to be merged with foreign portfolio investment route.
  17. Changes in the National Education Policy for changing the education system to global standards.
  18. More focus on research and innovation at school and higher education level.
  19. students Study in India – Focus on bringing foreign students to study in India.
  20. A television channel especially for start-ups.
  21. Under Internet connection, internet connectivity in local bodies in every panchayat.
  22. There is a proposal to expand the women’s SHG interest subvention program in all the districts.
  23. Proposal for issuing Aadhaar card to NRI with Indian passport on arrival without waiting for 180 days.

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