8 July 2019

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Union Finance Minister Presents First Budget of New Government


The Union Finance Minister, Nirmala Sitharaman has presented first budget after the formation of new Government. Nirmala Sitharaman is the second woman after Indira Gandhi presenting budget on behalf of the new Government. For the first time, budget documents were carried by Finance Minister in a red silk bag (Bahi khata) with national emblem instead of briefcase. “People’s hearts is filled with Aasha (Hope), Vishwas (Trust), Aakansha (Aspirations)”, says Finance Minister. The Budget lays emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, and batteries, and medical devices under Make in India.

A per the highlights of budget, the income tax rate has increased to 3 % for those earning Rs 2 to 5 crore and to 7 % for those above Rs 5 crore. However, there is no change in the income tax slabs being followed currently. Union Finance Minister has informed that, TDS of 2% will be levied on over Rs 1 crore bank withdrawal which is meant to discourage cash transactions. A special excise duty of Rs 1/Litre on petrol and diesel is to be levied. Further, it is informed that, companies having turnover of less than Rs 5 crores will have to file GST Quarterly Returns. Now AADHAAR and PAN can be used interchangeably. Those who don’t have PAN can file tax returns using Aadhaar.

There is more focus to Boost to Electric Vehicles by Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans. Customs duty exempted on certain parts of electric vehicles. New National Education Policy to be brought which proposes major changes in both school and higher education, better Governance systems, greater focus on research and innovation. Rural families will have electricity and clean cooking facility by year 2022. Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh. Further, there will be Overall benefit of around Rs. 7 lakh over loan period of 15 years. “Indian economy will become a 3 trillion dollar economy in the current year and is on the path of achieving the Prime Minister’s vision of a 5 trillion dollar economy by 2024-25”, said Union Minister of Finance and Corporate Affairs while presenting the Budget, 2019-2020.