05/07/2019
Highlights of the Union Budget for 2019-20 (Apr-Mar), presented
by Finance Minister Nirmala Sitharaman in Lok Sabha today:
DIRECT TAX
* Increasing surcharge on income over 20 mln rupees/year
* Faceless tax scrutiny case selection to be on random basis
* Propose 2% TDS on 10 mln rupee/yr cash withdrawal from banks
* Propose to take slew of measures to boost digital payments
* Launching automated, faceless assessment of tax
* To make pre-filled tax return forms available
* To make Aadhaar, PAN interchangeable to file tax returns
* Tax proposals aim to stimulate growth, housing
* Direct tax mop up 11.37 trln rupees FY19 vs 6.38 trln FY14
* Seeing double-digit growth in direct tax revenue annually
* Corporate tax now 25% for cos with 4 bln rupees/yr revenue
* Corporate tax cut to cover 99.3% of all cos
INDIRECT TAX
* To raise road, infra cess on petrol, diesel by 1 rupee/ltr
* To up special additional excise on diesel by 1 rupee/ltr
* To up special additional excise on petrol by 1 rupee/ltr
* Proposing certain amendments to Customs Act
* Raising customs duty on precious metals to 12.5%
* Raising customs duty on gold
* Customs duty being exempted on some parts of e-vehicles
* 5% customs duty being imposed on imported books
* To implement fully-automated GST refund module
* GST led to lower rates on almost all commodities
* Tax deduction of 150,000 rupees on e-vehicle loan interest
* Extra 150,000-rupee tax deduction on some small home loans
* RBI, banks to absorb merchant discount rate at small shops
* No merchant discount rate on e-transaction at small shops
Vaibhav Jain
Founder Arham Finwisers