"Top 5 takeaways from BUDGET 2019" by FinVise India

Finance Minister Nirmala Sitharaman presented her first Union Budget and also the first of the Narendra Modi 2.0 government. Here are 5 key takeaways from Budget 2019:

1) Towards a $5 trillion economy
Finance Minister Nirmala Sitharaman opened her speech with a target of making India a 5-trillion-dollar economy. She said that the goal was “imminently achievable" in the next few years. She said India took 50 years to become a $1 trillion economy. The Indian economy was at $1.85 trillion five years back, she added. "We have now reached the $2.7-trillion-mark and would become a $3 trillion economy in the current year," she said.

2) PAN card, Aadhaar interchangeable for filing income tax returns (ITR)
Finance Minister Nirmala Sitharaman announced the decision to make PAN and Aadhaar cards interchangeable soon. PAN and Aadhaar have been made interchangeable, allowing those who do not have PAN to file income tax returns (ITR). This means that taxpayers will need either an Aadhaar card or PAN card to file their ITR.

3) Digital push
The focus on digital payments will be done through multiple means of incentivizing digital transactions as well as penalizing the use of cash beyond a limit. Moreover, business establishments with an annual turnover of more than ₹50 crore will need to offer low-cost digital modes of payments like BHIM UPI, UPI-QR Code, Aadhaar Pay, debit cards, NEFT and RTGS to their customers.

4) Measures to make India a more attractive FDI destination
FDI in sectors like aviation, media (animation, AVGC) and insurance sectors can be opened further after the multi-stakeholder examination. Nirmala Sitharaman said the government will likely permit 100% FDI for insurance intermediaries. She also said the government will look at local sourcing norms for FDI in single-brand retail.

5) Income Tax Provisions

• Additional income tax deduction of ₹1.5 lakh on home loans for affordable houses costing below ₹45 lakh. This benefit will be available for home loans taken until March 2020. Cumulatively, the interest paid on home loan deduction will go up to ₹3.5 lakh, from the current ₹2 lakh for self-occupied house property.
• The government also announced ₹1.5 lakh income tax deduction on interest paid on loans for the purchase of electric vehicles.
• The government has proposed to levy 2% TDS on cash withdrawal on the amount exceeding ₹1 crore in a year.
• The government increased income tax surcharge for HNIs (high net worth individuals) earnings more than ₹2 crore a year. Those earning between ₹2-5 crore will have to shell out 3% more, with surcharge rate being increased from 15% to 25%. Those earning above ₹5 crore will have to shell out a surcharge of 37%, from the current 15%.

For more details on Mutual Funds, Financial Planning & Personal Finance contact us at : 

Phone No. 9582250638

Email Id: contact@finviseindia.com

Visit our website: www.finviseindia.com