PROVISION AND IMPACT OF

UNION BUDGET 2019 ON:

1. Direct Taxation
2. Indirect Taxation
GOVERNMENT’S MAIN REVENUE
SOURCES

DIRECT TAXES
INDIRECT TAXES
WHAT IS TAX?
Tax is a charge enforced and collected by the central
or/and state government to pay for the basic
amenities it offer such as hospitals, schools, roads,
military production and law enforcement.

The tax emerges when there is an ownership of an

asset, goods and services trade or where income
arises.

The amount of tax paid by a taxable person fairly

depends upon its spending and earnings.
What is Direct Tax?
Direct taxes are those taxes that are directly imposed
on the person from whom it is collected.

These taxes completely depend on the income and

wealth of a taxpayer.
 DIRECT TAXES ARE OF THE
FOLLOWING TYPES:
Income Tax: Central government imposes and
collects the income tax on the income of a
taxable person. Income tax slabs have been
structured relying on the various income groups
& types.

Corporation Tax: Domestic corporate is liable

to pay corporation tax on the surplus earned in
the course of a particular duration. Corporation
tax has a flat rate structure.
WHAT IS INDIRECT TAX?
 The indirect taxes are imposed on the supplier but
the ultimate burden is transferred to the ultimate
consumer of the goods.

 This tax is imposed and collected by the Central

government or State/UT government or both.
TYPES OF INDIRECT TAXES IN INDIA

 Goods and Services Tax: 17 indirect taxes have been

subsumed under the GST law which was implemented on
1st July 2017.

 Central level:
 Central Excise Duty (CENVAT)
 Service Tax

 The Excise Duty levied under the Medicinal and Toiletries

Preparations (Excise Duties) Act 1955
 Additional Excise Duties

 Additional Customs Duty, commonly known as

Countervailing Duty (CVD)
STATE LEVEL
1) VAT / Sales tax
2) Luxury tax
3) Entertainment tax (unless it is levied by the local
bodies)
4) Taxes on lottery, betting and gambling
5) State Cesses and Surcharges on the supply of
goods and services
6) Entry Tax
7) Purchase Tax
PROVISIONS MADE ON TAXATION IN
THE UNION BUDGET 2019:
1) No change in Personal Income Tax rates. No tax &
no income tax return required in total up to 5
lakhs.

2) Direct tax revenue increased to 11.37 lakhs crores.

3) Corporate tax: Tax rate of 25% on companies with

turnover of up to Rs. 400 crores. (This covers 99.3%
companies.)

4) GST rate reduced on electric vehicle from 12% to

5%.
1) Tax deduction on loan taken for purchase of
electric vehicle: Additional Income Tax deduction
of Rs. 1.5 Lakhs of interest on loan taken for
purchase of electric vehicle.

2) Star- up’s would not require scrutiny by IT

Department.

3) Additional deduction of Rs. 1.5 Lakhs for interest

on loans borrowed for affordable housing.

4) Securities Transaction Tax (STT) levy only on

difference between settlement price and
1) Interchangeability of PAN and Aadhaar for
Income Tax Returns.

2) E-assessment for Tax Scrutiny.

3) TDS of 2% on cash withdrawal exceeding Rs.

1 cr. From a Bank account per year.

4) No charges for customer on Digital modes of

payment.
1) Propose to enhance Surcharge on taxable income
of Rs. 2 to 5 Cr.

2) Simplified single monthly return in GST for tax

payer having turnover less than 5 cr.

3) Automated GST refund system to be initiated.

4) Electronic invoice system purposed, no need of

separate
1) Custom duty raised on Auto Parts, CCTV’s,
tiles, metal fittings, mounting for furnitures,
PVC, etc.

2) 5% custom duty increased on imported of

books.

3) Increase of custom duty on Gold & other

precious metals from 10% to 12.5% .

4) Increase of excise duty on petrol and diesel

by Rs.1/- per liter.