For individuals:
- No change in personal income tax slabs.
- Full tax rebate on taxable income (after all applicable deductions) up to Rs. 5 Lakh continues as announced in the interim budget of 2019.
- 3% surcharge for those in the income bracket ₹2 crore to5 crore, and 7% surcharge on income of ₹5 crore and above.
- Pre-filed income tax returns for taxpayers with details of salary income, capital gains, bank interests, dividends and tax deductions.
- Additional deduction on loans upto March 31 2020 for buying affordable houses giving RS 7 lakh benefit to home buyers over a loan period of 15 years.
- A new section 80EEA in the Income Tax Act is proposed so as to provide a deduction in respect of interest up to Rs 1.5 lakh on loan taken for residential house property from any financial institution subject to the following conditions:
(i) loan has been sanctioned by a financial institution during the period beginning on the April 1, 2019 to March 31, 2020;
(ii) the stamp duty value of house property does not exceed Rs 45 lakh;
(iii) assessee does not own any residential house property on the date of sanction of loan.This will come up to enhanced interest reduction of upto ₹3.5 lakh on loans for self-occupied properties of affordable homes.
- TDS of 2% on cash withdrawals exceeding ₹1 crore in a year from bank accounts, to discourage business payments in cash.
- No charges or merchant discount rates shall be imposed on customers or the merchants. RBI and banks will absorb these costs.
- PAN and Aadhaar to be interchangeable, and to allow those without PAN to file income tax by using Aadhaar number. Faceless and anonymous assessment system for income tax being rolled out this year in phases.
- GST rate on electric vehicles proposed to be lowered to 5% from 12%.
- Income tax deduction of ₹1.5 lakh on interest on loans taken to purchase electric vehicles.
- Period of exemption for capital gains arising from sale of house for investment in startups to be extended to March 31, 2021.
- Aadhaar cards for NRIs with Indian passports, after their arrival in India without waiting for the mandatory 180 days.
- Pension benefits to 3 crore retail traders and shopkeepers who have a revenue of less than ₹1.5 crore. This will be called the PM Karam Yogi Maan Dhan scheme.
- Proposed to increase custom duty on gold and other precious metals from 10 % to 12.5%.
- Special additional excise duty on fuel of ₹1 per liter.
- Duty raised on Tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.
- Inter-operable One Nation One transport card: ATM-like Transport card for universal travel on various modes of transport (metro, road, railways etc).
On banking and finance sector
- Number of public sector banks reduced by 8, through consolidation.
- Financial gains from cleaning up of banking sector are clearly visible. NPAs of commercial banks have come down by ₹1 lakh crore.
- ₹70,000 crore recapitalisation for public sector banks.
- NBFCs that are fundamentally sound should continue to get funding from banks and mutual funds. Govt will provide one-time 6-months partial credit guarantee for public sector banks, for the purchase of pooled assets of financially sound NBFCs.
- The regulation of housing finance sector to be returned to the RBI from National Housing Bank.
- SHGs interest subvention to all districts in India.
- For every verified woman SHG member having a Jan Dhan account, an overdraft of ₹5,000 shall be announced. One woman in every SHG will be made eligible for a loan of upto ₹1 lakh under the Mudra scheme.
- Investment by FIIs and FDIs in debt securities in infrastructure debt funds to be allowed.
- Minimum public shareholding in listed companies can be increased from 25% to 35%,
FOR MSME
- Loans of upto ₹1 crore to be given to MSMEs for ease of access.
- Payment platform will be created for MSMEs to enable them to pay bills, and save time.
- Propose easing angel tax for startups. The income of start- ups do not require scrutiny from I-T department.
- ‘Stand- Up India’ Scheme to continue till 2025.
- New television channel for start-ups.
On Divestment:
- Govt to modify present policy of retaining 51% stake in PSUs.
- Divestment target of Rs 1.05 lakh crore for FY 20.
- To improve capital inflows, govt to realign its holdings in CPFCs. Strategic disinvestment of select CPFCs will continue to remain a priority.
On FDI
- Local sourcing norms will be relaxed for the single-brand retail sector.
- Government to open FDI in aviation, insurance, animation AVGC and media.
For agriculture:
- Govt to support private entrepreneurs in agriculture.
- The government will focus more on agricultural infrastructure.
- Proposes zero-budget farming, as a model for farmers as a step towards doubling farmers income. (Zero-Budget farming is natural farming which is neither chemical-loaded nor organic with its reliance on manure. It’s a form of gardening as a self-sustainable practice with minimum external intervention).
- 10,000 new farm produce organisations to be set up.
- 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.
RURAL:
- Jal Shakti Ministry was created by integrating many water management ministries. New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024.
- Govt will explore additional funds for Jal Shakti by accessing the Compensatory Afforestation Fund management and Planning Authority fund.
- Govt will set up 100 new clusters for 50,000 artisans in FY 20.
- To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana.
- Every single rural family, except those unwilling, to have electricity by 2022.
- Proposes to expand Swachch Bharat to solid waste management in every village.
- The Department of Fisheries will establish a fisheries management network
- Under phase three of PM Gram Sadak Yojana, 1.25 lakh kms of road to be built in the next five years. Project cost estimated at over Rs 80,000 crore.
For investments and markets
- A social stock exchange is proposed, for social and voluntary organisations, to raise capital, equity and debt.
- “100% FDI for insurance intermediaries. Local sourcing norms to be eased for FDI in single-brand retail.”
- Limit on FPI in a company increased to 24%. NRI investment to merge with FPIs.
For transport:
- Government envisions using rivers for cargo transport.
- Government will do a restructuring of the national highway programme. In the second phase of Bharat Mala, States will be helped to develop State highways.
- Proposes ₹50 lakh crore investment for Railway infrastructure between 2018 and 2030, and using public-private partnerships unleash faster development, completion of tracks, passenger freight services.
- Inter-operable One Nation One transport card: ATM-like Transport card for universal travel on various modes of transport (metro, road, railways etc).
On Infrastructure:
- ₹100 lakh crore investments in infratructure over the next five years.
- A package for power sector tariffs and reforms will be announced soon.”
- Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.
On indirect taxes
- Defence products not manufactured in India are exempt from basic customs duty.
- Corporate tax with turnover of up to Rs 400 crore slashed to 25 per cent from current 30 per cent.
- 17 taxes and 13 cesses became one tax under GST. GST to be further simplified to a single monthly return.