Union Budget 2019 Highlights: ₹1.5 lakh tax relief on home loans, petrol-diesel rates see a surge

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2019-20 before the Lok Sabha. This is the first budget of the newly elected Narendra Modi government

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Union Finance Minister Nirmala Sitharaman presented the Union Budget 2019-20 before the Lok Sabha on Friday, July 5, 2019. This is the first budget of the newly elected Narendra Modi government and following are the key highlights from the session. 


Highlights of Union Budget 2019-2020

 

  • No income tax for salaried class earning up to ₹5 lakh per annum.
  • Propose to increase 3% surcharge for those with income between ₹2 crore to ₹5 crore. 7% increase in the surcharge for those with income above ₹5 crore.
  • PAN and Aadhaar would soon be interchangeable. ITR can be filed without PAN by quoting Aadhaar.
  • In order to discourage the practice of making business payments in cash, 2% TDS will be levied on cash withdrawal exceeding ₹1 crore per year from a single bank account.
  • Corporate tax on companies with turnover up to ₹400 crore reduced to 25%. Earlier, this was applicable to companies with an annual turnover of ₹250 crore.
  • Proposed to increase Road and Infrastructure cess on diesel and petrol by ₹1.
  • Additional ₹1.5 lakh income tax deduction on home loan interest paid for buyers of affordable homes till 2020. This means those purchasing an affordable house will get tax relief up to Rs 3.5 lakh on paid interest.
  • ₹350 crore allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans.
  • Non-performing Asset (NPAs) recovery of ₹4 lakh crore over the last four years, NPAs down by ₹1 lakh crore in the last one year.
  • Pension benefits will be offered to 3 crore shop owners with an annual turnover of less than Rs 1.5 crore under a new scheme called Pradhan Mantri Man Dhan Scheme.
  • Proposed setting up a Social Stock Exchange for listing Social enterprises, voluntary organisations. Social Stock Exchange under SEBI proposed.
  • A modern tenancy law will be finalised and given to the states.
  • The government proposing to streamline multiple labour laws into a set of 'four labour codes'.
  • Support to Private entrepreneurship in driving value addition to farmers produce.
  • India to be open-defecation free by October 2, 2019.

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