Union Budget 2019: Highlights – Expected

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Below are some expected Union Budget 2019: Highlights –

Tax Highlights:

  • No changes in the structure of income tax.
  • 100 percent tax deduction for the first 5 years to companies registered as Farmer Producer Companies (FPC) with a turnover of Rs 100 crore and above.
  • Deduction of 30 % on emoluments paid to new employees Under Section 80JJAA of the Income-tax Act to be relaxed to 150 days for footwear and leather industry. This is to create more employment.
  • Standard Deduction of Rs. 40,000 in place of present exemption for transport allowance and reimbursement of miscellaneous medical expenses to benefit salaried employees and pensioners.
  • Tax on Long Term Capital Gains exceeding Rs 1 lakh proposed at the rate of 10%
  • GST collections projection pegged at Rs 7.43 lakh crore in full year 2019 as against Rs 4.44 lakh crore in 9 months of current fiscal.
  • Proposal to introduce tax on distributed income by equity oriented mutual funds at the rate of 10%.
  • Existing 3 percent education cess to be replaced by a 4 percent “Health and Education Cess” to collect an estimated additional amount of Rs 11,000 crores.
  • Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.
  • E-Assessment of Income Tax to be rolled out across the country to transform age old assessment procedure.
  • Changes proposed to the Custom Act to improve Ease of Doing Business.
  • To incentivise ‘Make in India’, custom duty to be increased on mobile phones and TV parts.
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Relief to Senior Citizens may be proposed:

  • Exemption of interest income on deposits with banks and  post offices to be increased from Rs 10,000 to Rs 50,000.
  • TDS  not required to be deducted under section 194A. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes.
  • Hike in deduction limit for health insurance premium and/or medical expenditure from Rs 30,000 to Rs 50,000 under section 80D.
  • Increase in deduction limit for medical expenditure for certain critical illness from Rs 60,000 (in case of senior citizens) and from Rs 80,000 (in case of very senior citizens) to Rs 1 lakh for all senior citizens, under section 80DDB.
  • Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020.
  • Current investment limit proposed to be increased to Rs 15 lakh from the existing limit of Rs 7.5 lakh per senior citizen.

Other expected Highlights:

  • International Monetary Fund (IMF), in its latest update, has forecasted that India will grow at 7.4% next year.
  • Total expenditure during 2019 is estimated to be over Rs. 24.42 lakh crore.
  • Fiscal Deficit pegged at 3.5 % of GDP at Rs 5.95 lakh crore for 2017-18, projected at 3.3 % for 2018-19.
  • Government has declared Minimum support price (MSP) for the majority of rabi crops at least at 1.5 times the cost involved and MSP for the all unannounced crops of kharif at least at 1.5 times of their production cost.
  • Existing 22,000 rural Haats to be transformed into Gramin Agricultural Markets (GrAMs) to protect the interests of 86% small and marginal farmers.
  • 24 new Government Medical Colleges and Hospitals to be set up to ensure at least 1 Medical College for every 3 Parliamentary Constituencies and at least 1 Government Medical College in each State of the country.
  • World’s largest Health  Protection Scheme covering over 10 crore poor and vulnerable families launched with coverage upto Rs 5 lakh per family for secondary and tertiary treatment.
  • Develop 10 prominent tourist sites into Iconic Tourism destinations.
  • Government will formulate a comprehensive Gold Policy to develop gold as an asset class. Gold Monetization Scheme to be revamped to enable people to open a hassle-free Gold Deposit Account.
  • Launch Scheme to assign a unique ID to every individual enterprise in India.
  • Allocation for Ministry of Food Processing doubled from Rs 715 crore in RE 2017-18 to Rs 1400 crore in BE 2018-19.
  • Institutional Credit for agriculture sector to be increased from Rs 10 lakh crore  to Rs 11 lakh crore.
  • Allocation under National Rural Livelihood Mission to be increased to Rs 5750 crore.
  • Rs 14.34 lakh crore to be spent by the Ministries  for creation of livelihood and infrastructure in rural areas.
  • Loans to Women Self Help Groups to increase to Rs.75,000 crore by March 2019 from 42,500 crore last year.
  • Government’s estimated schematic budgetary expenditure on health, education and social protection for 2019 is Rs 1.38 lakh crore.
  • Set target of Rs 3 lakh crore for lending under MUDRA for 2019.
  • Rs 7,148 crore outlay for textile sector in 2019.
  • Estimated budgetary and extra budgetary expenditure on infrastructure for 2019 increased to Rs 5.97 lakh crore.
  • Capital Expenditure in Railway Sector for the year 2019 has been pegged at Rs 1,48,528 crore.
  • Allocation on Digital India programme doubled to Rs 3073 crore.
  • Disinvestment target of Rs 80,000 crore set for 2019.
  • Rs 150 crore earmarked for the year 2019 for the activities leading to the Commemoration.
  • Rs 21.57 lakh crores transferred as net GST compensation to states against a projection of Rs 21.47 lakh crores.
  • India is expected to become the fifth largest economy with growth rate of 8 percent very soon.
  • Scheme called Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) to be launched for conversion of cattle dung and solid waste in farms to compost, fertilizer, bio-gas and bio-CNG.
  • Proposed to take up construction of tunnel under Sela Pass
  • Department of Commerce to develop National Logistics Portal as a single online window to link all stakeholders.
  • Central Board of Excise and Customs [CBEC] to be renamed as Central Board of Indirect Taxes and Customs (CBIC).
  • Dedicated Affordable Housing Fund (AHF) to be established in National Housing Bank (NHB).
  • Develop two Defence Industrial Production Corridors in the country.
  • Rs 500 crore to be allocated to “Operation Greens” to address price fluctuations in potato, tomato and onion.
  • Restructured National Bamboo Mission to be launched at a cost of Rs 1,290 crore to promote bamboo sector.
  • Fishery and Aquaculture Infrastructure Development Fund (FAIDF) and Animal Husbandry Infrastructure Development Fund (AHIDF) to be set up with total corpus of Rs 10,000 crore.
  • Agri-Market Infrastructure Fund to be set up with a corpus of Rs 2000 crore for developing and upgrading rural agriculture market infrastructure.
  • Proposal of  8 crore free LPG gas connections to women under UJJWALA Scheme and 4 crore free electricity connections to the poor under Saubhagya Yojana. Rs 16000 crore allocated for the scheme.
  • Groundwater irrigation scheme under Prime Minister Krishi Sinchai Yojna-Har Khet ko Pani allocated Rs 2600 crore.
  • Ayushman Bharat programme allocated Rs 1,200 crore under which 1.5 lakh centres will be set up to provide health facilities closer to home.
  • Additional Rs 600 crore to be allocated to provide nutritional support to all TB patients at the rate of Rs 500 per month for the duration of their treatment.
  • Right to Education Act to be amended to enable training of more than 13 lakh untrained teachers; Integrated B. Ed programme to be initiated to improve quality of teachers.
  • Aims to move from blackboard to digital board schools by 2022.
  • Eklavya schools to be started for Scheduled Tribe population.
  • Set up two new full-fledged Schools of Planning and Architecture (SPA) selected on challenge mode.
  • 18 new SPAs would be established in the IITs and NITs as autonomous Schools on challenge mode.
  • Rs 9975 crore to be allocated to National Social Assistance Programme.
  • Government to contribute 12% of the wages of the new employees in the EPF for all the sectors for next 3 years
  • Rs 3794 crore to be allocated to MSME Sector.
  • Under Prime Minister Awas Scheme (Rural), 51 lakh houses during 2019 will be constructed exclusively in rural areas.
  • NABH Nirman initiative announced with allocation of Rs 60 crores to expand airport capacity.
  • Provision for acquisition of 12,000 wagons, 5,160 coaches and approximately 700 locomotives during 2018-19.
  • UDAN (Ude Desh ka Aam Naagrik) scheme will connect 56 unserved airports and 31 unserved helipads.
  • Under NABH Nirman proposal,  airport capacity to be expanded by more than 5 times to handle 1 billion trips a year.
  • NITI Aayog to initiate a national program in the area of Artificial Intelligence(AI); Centres of excellence to be set up on robotics, AI, Internet of things etc.
  • Rs 10,000 crore allocated to set up 5 lakh wi-fi hotspots to provide broadband access to five crore rural citizens.
  • Department of Telecom will establish indigenous 5G Test Bed at IIT, Chennai.
  • Government does not consider crypto-currencies as legal tender/coin and will take measures to eliminate use of these crypto assets in financing illegitimate activities.
  • Propose policy to introduce toll system on ‘‘pay as you use’’ basis.
  • Three Public Sector Insurance companies- National Insurance Co. Ltd., United India Assurance Co. Ltd., and Oriental India insurance Co. Ltd. to be merged into a single entity, and subsequently listed in the stock exchange, as part of the disinvestment programme.
  • Commemorate 150th birth anniversary of Mahatma Gandhi, Father of the Nation, from 2nd October, 2019 to 2nd October 2020.

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