BUDGET 2019 HIGHLIGHTS

Key Features

1. Vision for $5 trillion economy driven by investment

2. Transforming rural lives
3. New Jal Shakti Mantralaya to ensure Har Ghar Jal
4. Enhancing ease of direct and indirect taxation
5. Strengthening connectivity Infrastructure
6. Gandhipedia to sensitize society
7. Harnessing India’s space abilities

Key Schemes

 Pradhan Mantri Karam Yogi Maandhan: Pension benefits to retail traders and small shopkeepers
 Pradhan Mantri Matsya Sampada Yojana (PMMSY): Establish robust fisheries management
framework
 Reform, Perform, Transform agenda: GST, IBC, RERA etc.
 Changing common man’s life: MUDRA, UJJWALA, SAUBHAGYA etc.

Key Announcements

FDI & FPI

 India attracted $64.4 bn worth of FDI in 2018-19

 100% FDI to be permitted for Insurance intermediaries Infrastructure
 Statutory limit for FPI investment in a company increased to sectoral Foreign investment limit
 Local sourcing norm s to be eased for FDI in single brand retail

Banking and Capital markets

 PSU Bank recap: Public Sector Banks (PSBs) proposed to be further provided ₹70,000 crore capital to
boost credit
 For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of ₹1-lakh
crore, during the current financial year, Government will provide one time six months' partial credit
guarantee to Public Sector Banks for first loss of up to 10 per cent.
 Promoter shareholding: In Union Budget, finance minister has asked SEBI to consider to reduce
maximum promoter shareholding from current level of 75% to 65%.
 Regulatory control over housing finance sector: Proposal to return the regulation authority over the
housing finance sector from National Housing Board (NHB) to the RBI.
 PSU divestment target raised to ₹1,05,000 crore
 NRI-Portfolio Investment Scheme: Proposal to merge the NRI-Portfolio Investment Scheme Route
with the Foreign Portfolio Investment Route.

Infrastructure

 Bharatmala phase 2 to be launched. State road networks will be developed

 UDAAN: Number of operational Airports crossed 100
 Jal Marg Vikas project and Sagarmala initiatives: improving logistics, reducing transportation cost
and increasing competitiveness.
 PPP in railways infra development
 657 km Metro rail network already operational.
 National Common Mobility Card launched.
 Operating ratio of Railways targeted to improve to 95% in 2019-20
 1 Nation 1 Grid Power for affordable Power to States
 Houses under PMAY-U: Sanctioned 81 lakh, construction started 47 lakh, completed 26 lakh and
delivered 24 lakh
 Promotion of rental housing: Model tenancy law to be finalised.
 Measures for boosting infrastructure financing:
o Credit Guarantee Enhancement Corporation to be set up in 2019-20
o Action plan to deepen long term bonds market
o To permit transfer of FII/FPI investment in debt securities issued by IDF-NBFCs to domestic
investors

Industrial development

Empowering MSMEs and social enterprises

 Allocation of ₹350 crores loans to MSME’s with 2% subvention to GST registered MSME
 Upto ₹1 crore loan to MSME in 59 minutes
 Payment platform for bill filing for MSMEs to be created: to address delays
 Social stock exchange for listing social enterprises and voluntary organisations
 75000 entrepreneurs to be trained

Make in India and Start-ups promotion

 Changes in customs duties to promote Make in India

 Exclusive TV channel for startups
 E-verification for establishing investor identity and source of funds to resolve tax issues relating to
fund raising

Push to E-vehicles

 FAME Scheme Phase-2 commenced

 Customs duty exemption on certain e-vehicle parts
 Income tax deduction of interest on loans for e-vehicle purchase

Direct and Indirect tax

 Threshold for applicability of lower corporate tax rate of 25% increased from ₹250 crore to ₹400
crore. This will cover 99.3 % companies.
 Enhanced interest deduction up to ₹3.5 lakh for purchase of an affordable house.
 Deposit taking and systemically important non-deposit taking NBFCs can now pay tax in the year
they receive interest for certain bad or doubtful debts.
 TDS of 2% on cash withdrawal exceeding ₹1 crore in a year from a bank account to promote less cash
economy.
 Effective tax rate for individuals having taxable income above ₹2 crore has been increased.
 No charges or MDR on specified digital mode of payments. These modes are to be compulsorily
provided by large businesses.
 Sabka Vishwas Legacy Dispute Resolution Scheme proposed for quick closure of service tax and
excise related litigations.
 GST rate reduced on electric vehicle from 12% to 5%.
 Tax deduction on loan taken for purchase of electric vehicle: Additional Income tax deduction of ₹1.5
lakh of interest on loan taken for purchase of electric vehicle.
 STT change in case of Options
 Interchangeability of PAN and Aadhaar for Income Tax Returns.
 Faceless E-assessment for Tax Scrutiny
 Automated GST refund system to be initiated
 Custom duty raised on Auto Parts and CCTV’s
 5% Custom duty increased on imported books
 Increase of custom duty on Gold
 Additional excise duty of ₹1 per litre and road cess of ₹1 per litre on petrol and diesel