2019 INTERIM BUDGET HIGHLIGHTS Chokshi Group,India Keeping you ahead - MSI Global Alliance
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Keeping you ahead… 2019
INTERIM BUDGET HIGHLIGHTS
Chokshi Group,India
Keeping you ahead….
FOREWARD
FOREWORD
Reiterating the pledge given to the people of India five years ago to give this nation an
honest, clean and transparent Government and to build a strong, confident and a New
India, Honarable Shri. Piyush Goyal, our Finance Minister said, the Government led by
Honarable Prime Minister, Shri Narendra Modi, has successfully implemented a series of
fundamental structural reforms to propel India among the fastest growing economies of
the world.
The Indian economy is now the sixth largest world economy, with the International
Monetary Fund (IMF) having projected a growth rate at 7.4% in the financial year 2019-
2020 for India.
The Honarable Finance Minister projected a Fiscal Deficit of 3.4% of GDP for the year 2019-
2020. The Revised Fiscal Deficit estimates for 2019-2020 crore at 2.5% of GDP.
SECTOR HIGHLIGHTS
SECTORAL HIGHLIGHTS
INFRASTRUCTURE AND FINANCIAL SECTOR DEVELOPMENT
Pradhan Mantri Gram Sadak Yojana (PMGSY) is being allocated Rs. 19,000 crore in 2019-2020
(BE).
Capital support from the budget for railways is proposed at Rs. 64,587 crore in 2019-2020 (BE).
The Railways’ overall capital expenditure programme is of Rs.1,58,658 crore.
The flagship programme of Sagarmala along the coastal areas of the country will develop ports
for faster handling of import and export cargo. For the first time, container freight movement
has started on inland waterways from Kolkata to Varanasi. The Government will introduce
container cargo movement to the North East as well, by improving the navigation capacity of
the Brahmaputra River.
Arunachal Pradesh came on the air map recently and Meghalaya, Tripura and Mizoram have
come on India’s rail map for the first time. Allocation for the North Eastern Areas is being
proposed to be increased by 21% to Rs. 58,166 crore in 2019-2020 BE.
During the period 2014-2018, a total number of 1.53 crore houses have been built under the
Pradhan Mantri Awas Yojana.
EDUCATION
There are 21 AIIMS (All India Institutes of Medical Science) operating or being established in the country
presently. 14 of these 21 AIIIMS have been announced since 2014. The Government is setting up a new
22nd AIIMS in Haryana.
Allocation for National Education Mission is being increased to Rs. 38,572 crore in 2019-2020 (BE).
DEFENCE
Defence budget for the first time has increased to Rs 3 lakh crore and additional funds will be provided.
The Government also announced substantial hike in the Military Service Pay (MSP) of all service
personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties.
AGRICULTURE Under Pradhan Mantri Kisan Samman Nidhi, Rs. 6000 per year shall be given to each farmer, in three instalments, to be transferred directly to farmers’ bank accounts, for farmers with less than 2 hectares of land holding. The programme would be made effective from 1st December 2018. This programme will entail an annual expenditure of RS. 75,000 crore, funded by the Government of India. 2% interest subvention to farmers pursuing animal husbandry and fisheries, who avail loan through Kisan Credit Card. Further, in case of timely repayment of loan, they will also get an additional 3% interest subvention. The Government has increased the allocation for Rashtriya Gokul Mission to Rs.750 crore in the current year itself. The Government announced setting up of "Rashtriya Kamdhenu Aayog" to upscale sustainable genetic up-gradation of cow resources and to enhance production and productivity of cows. To provide sustained and focused attention towards development of the Horticulture sector, our Government has decided to create a separate Department of Fisheries. The Government has now decided that all farmers affected by severe natural calamities, where assistance is provided from National Disaster Relief Fund (NDRF), will be provided the benefit of interest subvention of 2% and prompt repayment incentive of 3% for the entire period of re-schedulement of their loans.
RURAL
Government embarked upon a programme to deliver 8 crore free LPG connections under the Ujjwala
Yojana. More than 6 crore connections have already been given and the remaining will get free gas
connections by next year.
Mahatma Gandhi National Rural Employment Guarantee program’s allocation increased by Rs. 5,000
crore to Rs. 60,000 crore for FY2020.
The Aspirational Districts Programme is providing targeted development to the 115 most backward
districts of the country. The programme has achieved notable results with improved performance on all
indicators - health and nutrition, education, agriculture and water resources, financial inclusion and skill
development.
HEALTH SERVICE
The government launched the world’s largest healthcare programme, Ayushman Bharat, to provide
medical treatment to nearly 50 crore people.
RS. 3,000 crore through free treatment made available under the scheme.
Lakhs of poor and middle class people are also benefiting from reduction in the prices of essential
medicines, cardiac stents and knee implants, and availability of medicines at affordable prices through
Pradhan Mantri Jan Aushadhi Kendras.
FISCAL MANAGEMENT
Fiscal deficit has been bought down to 3.4%; CAD (current account deficit) likely to be 2.5% of GDP this
year.
FY2020 fiscal deficit target set at 3.4 %.
Expenditure target for FY2020 set at Rs 27.84 lakh crore.
Capital expenditure for FY2020 set at Rs 3.36 lakh crore.
FY2019 fiscal deficit pegged at 3.4 % of GDP; current account deficit at 2.5 % of GDP.
FY2020 gilt repayment pegged at Rs 2.36 lakh crore.
DIGITAL ECONOMY
More than 3 lakh Common Service Centres (CSCs) employing about 12 lakh people, are digitally
delivering several services to the citizens. The Common Service Centres are expanding their services and
also creating digital infrastructure in the villages, including connectivity, to convert the villages into
Digital Villages.
The Government will make 1 lakh villages into Digital Villages over next five years.
Jan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfer have been game changers. In the last five
years, nearly 34 crore Jan Dhan bank accounts were opened.
Aadhaar is now near universally implemented.
MICRO SMALL MEDIUM ENTERPRISE
Two % interest subvention on loan of Rs. 1 crore for GST registered MSME units.
The requirement of sourcing from SMEs by Government enterprises has been increased to 25%.
Of this, the material to the extent of at least 3% will be sourced from women owned SMEs.
MSMEs have an opportunity to sell their products through Government E- Market place (GeM).
Transactions of over Rs. 17,500 crore have taken place, resulting in average savings of 25-28%.
The GeM platform is now being extended to all CPSEs.
Allocation for micro, small and medium enterprises and other initiatives including Pradhan
Mantri Awas Yojana (Urban and Rural) may increase. This might include more benefits for
women entrepreneurs.
DISINVESTMENT
The Central government has pegged the disinvestment target at Rs 90,000 crore in the Budget
Estimate for 2019-2020 fiscal as compared to Rs 80,000 crore for the current financial year
ending March this year.
As many as 57 CPSEs are now listed with a total market capitalisation of over Rs 13 lakh crore.
SOCIAL REFORM
The Government claims that than 70 % of Mudra Yojna beneficiaries were women.
The Pradhan Mantri Matritva Yojana and providing 26 weeks of maternity leave.
The Government has proposed 10% reservation for the economically weak sections in Public
Institutes
The Pradhan Mantri Shram Yogi Mandhan will provide monthly assured pension of Rs. 3000
with contribution of Rs. 100 per month for workers in unorganized sector after 60 years of age.
DIRECT TAXATION
TAX RATES:
No change in Tax Rates or basic exemption limits.
DEDUTIONS/EXEMPTIONS:
Standard deduction to Salaried Employees increased from Rs. 40,000/- to Rs. 50,000/-.
No notional rent on two house properties owned by an individual. Hence two properties will
now be considered as Self Occupied.
Aggregate deduction on both house properties not to exceed Rs. 2,00,000/-.
On Capital Gains on the Sale of Property upto Rs. 2 crore, exemption u/s 54 of the Income
Tax Act, 1961 would now be available on purchase of two residential house properties.
Rebate u/s 87A increased from Rs. 2500/- to Rs. 12500/- for taxable Income upto Rs.
5,00,000/-.
Threshold limit for TDS on Interest from Banks and Post Office Deposits increased from Rs.
10,000/- to Rs. 40,000/-.
Threshold limit for TDS on rent increased from Rs. 1,80,000/- to Rs. 2,40,000/-.
Time limit for obtaining approval of housing project u/s 80-IBA extended upto 31.03.2020.
Notional rent in respect of unsold inventory shall not be chargeable to tax upto two years
from the end of the financial year in which the completion certificate is obtained from the
competent authority as against the period of one year under the existing provisions.INDIRECT
INDIRECT TAXATION - GOODS AND SERVICES TAX
Dealer can file quarterly GST return if the annual turnover is less than of Rs. 5 Crore.
Two % interest subvention on loan of Rs. 1 crore for GST registered MSME units.
Indian Customs to fully digitised exim transaction and leverage RFID for logistics. Govt.
abolishes duties on 36 capital goods.
STAMP DUTY AMENDMENT
Previous Change
Conversion of securities from depository to physical
Conversion of securities from depository to The same has been removed.
physical were charged to stamp duty as per
rate chargeable on the issue of duplicate
share certificate.
Stamp Duty on Transfers
Stamp duty shall not be payable; Stamp duty shall be payable;
- on transfer of beneficial - on transfer of beneficial
ownership of securities dealt with by a ownership of securities dealt with by a
depository, depository,
- beneficial ownership of units, - beneficial ownership of units,
such units being units of a Mutual Fund such units being units of a Mutual Fund
including units of the Unit Trust of India including units of the Unit Trust of India
established, dealt with by a depository. established, dealt with by a depository.
Collection of Stamp Duty
NA. A new section 9A is being introduced in the
(The same was collected by Stock brokers Indian Stamp Act, 1899, in which Stamp
and was paid directly to Government) duties would be levied on one instrument
relating to one transaction and get collected
at one place through the Stock Exchanges.
The duty so collected will be shared with the
State Governments seamlessly on the basis
of domicile of buying client.
(Now it shall be collected by Stock
Exchanges through Stock brokers and shall
be paid to respective SGs)For further information please contact Chokshi Group at:
Mumbai Office:
15/17 Raghavji ‘B’ Building, Ground Floor, 101-102, 1st Floor, Kshamalaya,
Raghavji Road, Gowalia Tank, 37, Sir V. Thackersey Marg,
Off. Kemps Corner, Mumbai – 400 036 New Marine Lines, Mumbai – 400 020
Maharashtra, India Maharashtra, India
T: +91 (022) 2383 6900
F: +91 (022) 2383 6901
E: research@chokshigroup.com
Delhi Office: Pune Office:
Office No. 35, Shiva Arcade Acharya Niketan, 4th Floor, Mayur Trade Centre,
Mayur Vihar, Phase 1, 4533, Chinchwad, Pune – Mumbai Road, Pune -
New Delhi – 110091, India 411 019
Maharashtra, India
Ahmedabad Office: Hyderabad Office:
81/1, Government H Colony, Basheer Villa, H.No. 8-2-268/1/16/B,
Near Nehrunagar Circle, Ambawadi, Flat No. 2, Sriniketan Colony, Road No. 3
Ahmedabad – 380 015 Banjara Hills, Hyderabad – 500 034
Gujarat, India Andhara Pradesh, India
Bengaluru Office: Chennai Office:
House Number 252/H, I Floor, 2C 528, Anna Salai III Floor Teynampet,
Main Road, Chennai 600018, India
Girinagar 1st Phase Addl.
Bengaluru 560085, India
Kolkata Office:
11 Old Post office Street,
2nd Floor Kolkata 70001
Disclaimer: This Key Highlights of Interim Union Budget 2019 contains general information existing at the time of its preparation only. It is intended as a
news update and is not intended to be comprehensive nor to provide specific accounting, business, financial, investment, legal, tax or other
professional advice or opinion or services. This Budget Highlights is not a substitute for such professional advice or services, and it should not be acted on
or relied upon or used as a basis for any decision or action that may affect you or your business.
Whilst every effort has been made to ensure the accuracy of the information contained in this budget primer, this cannot be guaranteed, and neither
Chokshi Group nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication. Any such
reliance is solely at the user’s risk.
This document is for private circulation only.You can also read
