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Budget Highlight: Union Budget 2019 Highlights

Publish Date: February 01, 2019

Friday morning brought a mixed bag of emotions as our acting Finance minister Piyush Goyal presented the Union Budget 2019. The budget was heard in the midst of cheers and boos as the interim finance minister unveiled important propositions for various sectors of the Indian economy.

Here are the highlights of the Union Budget 2019:

  • India attracted a total of $239 billion FDI, fiscal deficit at 3.4% for the upcoming fiscal year
  • Move towards clean banking reforms with defaulters being brought to book
  • A government of transparency and no corruption
  • 4,45,000 villages - open defecation free
  • 10% reservation for economically backward classes to generate 2 lakh seats an positions in education and job sphere
  • MNREGA fund allocation - Rs.60,000 crore to bridge the gap between rural and urban. Targetted expenditure to be done to improve quality of life
  • Read more about the Union Budget 2019

  • Construction of rural roads increased by 3 times and rural housing construction by 5 times (1.53 crore houses built)
  • Healthcare scale up - Ayushman Bharat Yojna. Rs.3000 crore allocated to the scheme expected to treat 50 crore people
  • Aspirational District Program for targetted development of 115 most backward districts
  • 22nd AIIMS to be in Haryana
  • Zero-Income slab doubled--to Rs.500,000; Rs.650,000 with Rs.1,50,000 tax-saving investments
  • Read more about the Union Budget 2019 and its implication on taxes

  • The standard deduction for the salaried raised from Rs.40,000 to Rs.50,000
  • Government share in EPFO to increase by 4% making it 14%. Death benefit--2.5L to 6L.
  • Gratuity limit increased by from Rs.10L to Rs.30L.
  • Income support to small farmers with land holdings up to 2 hectares, a sum of Rs.6000/ annum to be directly transferred to the Farmers bank accounts in 3 equal instalments of Rs.2000, helping ~12 crore farmers - Rs.75,000 crore allocated to this scheme
  • 2% interest relaxation to farmers using the Kisan Credit Card working in animal husbandry and fisheries. Movement to include all farmers under this scheme
  • 26 weeks of Maternity Leaves to empower the women
  • More than 3 Lakhs crores for defence
  • One lakh digital villages in next 5 years. Data consumption increased x50 times
  • Aadhar encompassing the country has eliminated the middleman theft
  • India is one of the lowest prices wrt voice and data rates.
  • Single window for approval of India filmmakers
  • India the fastest growing economy- 6th largest economy up from 11th largest.
  • Pension scheme to benefit 10 crore workers in the unorganised sector. Rs.3000/m for workers earning up to Rs.15,000
  • Read more about the Union Budget 2019 and its implication on investments

  • For Direct Tax Payers: Simplification of the tax payment system. Interface with tax department electronic and largely faceless. Scrutiny to be done electronically and anonymously.
  • IT Returns to be processed in 24 hours and returns issued simultaneously.
  • Increase in income tax collection from Rs.6.38lakh crore to ₹12lakh crore.
  • GST burden reduced on the middle class. Daily use items GST to be 0-5%.
  • GST council to review tax burden on homebuyers.
  • TDS threshold increased from Rs.10000 to Rs.40000 (bank and post office deposits)
  • Ceiling Limit of TDS increased from Rs.180000 to Rs.240000 (house rent income)
  • Capital tax Benefit increased from investment in one residential house to two residential houses.
  • India poised to become a $5 trillion economy in five years, looking at becoming a $10 trillion economy in 10 years.
  • The 10-dimensional vision for the next decade: Build next-gen infrastructure, for all modes of transport, physical and social for a 10 trillion dollar economy. Bring in renewables as the primary source of energy and move forth in the space initiatives.
  • Debt to GDP ratio to be below 40% with a focus on debt consolidation along with fiscal consolidation. Fiscal Deficit target at 3.4% of GDP for 2019-20.
  • No tax on notional rent for a second self-occupied home
  • The tax cut to give relief of Rs.185 billion to 30 million taxpayers
  • Brought Rs.1.3 trillion undisclosed income under the tax net (black money elimination)
  • Capital gains up to Rs.2 crore
  • Domestic air traffic doubled in the last 5 years
  • India fastest highway developer. 27 km highway built every day
  • 99.54% returns were accepted as filed without scrutiny.
  • Tax returns up from Rs.3.79 crore to Rs.6.85 crore
  • 34 crore Jan Dhan accounts opened in last five years
  • Capital expenditure target: Rs.3.36 lakh crore
  • Expenditure to rise by 13% from 2018-19 to 2019-20
  • 12% GST for cinema goers.
  • By: Sandhya Kannan, Head – Content

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