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Key Highlights of Union Budget 2019-20

Key Highlights of Union Budget 2019-20

The Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman made her maiden Budget Speech today and presented the Union Budget 2019-20 before the Parliament.
The key highlights of Union Budget 2019 are as follows:
10-point Vision for the decade
 Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.
 Achieving green Mother Earth and Blue Skies through a pollution-free India.
 Making Digital India reach every sector of the economy.
 Launching Gaganyan, Chandrayan, other Space and Satellite programmes.
 Building physical and social infrastructure.
 Water, water management, clean rivers.
 Blue Economy.
 Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.
 Achieving a healthy society via Ayushman Bharat, well-nourished women & children,
safety of citizens.
 Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.
Towards a 5 Trillion Dollar Economy
Union Budget 2019-20
 “People‟s hearts filled with Aasha (Hope), Vishwas (Trust), Aakansha (Aspirations)”,
says FM.
 Indian economy to become a 3 trillion dollar economy in the current year.
 Government aspires to make India a 5 trillion dollar economy.
 “India Inc. are India‟s job-creators and nation‟s wealth-creators”, says FM.
 Need for investment in:
o Infrastructure.
o Digital economy.
o Job creation in small and medium firms.
 Initiatives to be proposed for kick-starting the virtuous cycle of investments.
 Common man‟s life changed through MUDRA loans for ease of doing business.
 Measures related to MSMEs:
o Pradhan Mantri Karam Yogi Maandhan Scheme
 Pension benefits to about three crore retail traders & small shopkeepers with annual turnover less than Rs. 1.5 crore.
 Enrolment to be kept simple, requiring only Aadhaar, bank account and a selfdeclaration.
o Rs. 350 crore allocated for FY 2019-20 for 2% interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention
Scheme for MSMEs.
o Payment platform for MSMEs to be created to enable filing of bills and payment
thereof, to eliminate delays in government payments.
 India‟s first indigenously developed payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards, launched in March 2019.
 Inter-operable transport card runs on RuPay card and would allow the holders to pay for bus travel, toll taxes, parking charges, retail shopping.
 Massive push given to all forms of physical connectivity through:
o Pradhan Mantri Gram Sadak Yojana.
o Industrial Corridors, Dedicated Freight Corridors.
o Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes.
 State road networks to be developed in second phase of Bharatmala project.
 Navigational capacity of Ganga to be enhanced via multi modal terminals at Sahibganj and Haldia and a navigational lock at Farakka by 2019-20, under Jal Marg Vikas Project.
 Four times increase in next four years estimated in the cargo volume on Ganga, leading to cheaper freight and passenger movement and reducing the import bill.
 Rs. 50 lakh crore investment needed in Railway Infrastructure during 2018-2030.
 Public-Private-Partnership proposed for development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.
 657 kilometers of Metro Rail network has become operational across the country.
 Policy interventions to be made for the development of Maintenance, Repair and Overhaul (MRO), to achieve self- reliance in aviation segment.
 Regulatory roadmap for making India a hub for aircraft financing and leasing activities
from Indian shores, to be laid by the Government.
 Outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME Scheme.
 Upfront incentive proposed on purchase and charging infrastructure, to encourage faster adoption of Electric Vehicles.
 Only advanced-battery-operated and registered e-vehicles to be incentivized under
FAME Scheme.
 National Highway Programme to be restructured to ensure a National Highway Grid, using a financeable model.
 Power at affordable rates to states ensured under „One Nation, One Grid‟.
 Blueprints to be made available for gas grids, water grids, i-ways, and regional airports.
 High Level Empowered Committee (HLEC) recommendations to be implemented:
o Retirement of old & inefficient plants.
o Addressing low utilization of gas plant capacity due to paucity of Natural Gas.
 Cross subsidy surcharges, undesirable duties on open access sales or captive generation for industrial and other bulk power consumers to be removed under Ujjwal DISCOM
Assurance Yojana (UDAY).
 Package of power sector tariff and structural reforms to be announced soon.
 Reform measures to be taken up to promote rental housing.
 Model Tenancy Law to be finalized and circulated to the states.
 Joint development and concession mechanisms to be used for public infrastructure and affordable housing on land parcels held by the Central Government and CPSEs.
 Measures to enhance the sources of capital for infrastructure financing:
o Credit Guarantee Enhancement Corporation to be set up in 2019-2020.
o Action plan to be put in place to deepen the market for long term bonds with focus on infrastructure.
o Proposed transfer/sale of investments by FIIs/FPIs (in debt securities issued by IDFNBFCs) to any domestic investor within the specified lock-in period.
Measures to deepen bond markets:
o Stock exchanges to be enabled to allow AA rated bonds as collateral.
o User-friendliness of trading platforms for corporate bonds to be reviewed.
 Social stock exchange:
o Electronic fund raising platform under the regulatory ambit of SEBI.
o Listing social enterprises and voluntary organizations.
o To raise capital as equity, debt or as units like a mutual fund.
 SEBI to consider raising the threshold for minimum public shareholding in the listed companies from 25% to 35%.
 Know Your Customer (KYC) norms for Foreign Portfolio Investors to be made more investor friendly.
 Government to supplement efforts by RBI to get retail investors to invest in government treasury bills and securities, with further institutional development using stock exchanges.
 Measures to make India a more attractive FDI destination:
o FDI in sectors like aviation, media (animation, AVGC) and insurance sectors can be opened further after multi-stakeholder examination.
o Insurance Intermediaries to get 100% FDI.
o Local sourcing norms to be eased for FDI in Single Brand Retail sector.
 Government to organize an annual Global Investors Meet in India, using National Infrastructure Investment Fund (NIIF) as an anchor to get all three sets of global players
(pension, insurance and sovereign wealth funds).
 Statutory limit for FPI investment in a company is proposed to be increased from 24% to sectoral foreign investment limit. Option to be given to the concerned corporate to limit it to a lower threshold.
 FPIs to be permitted to subscribe to listed debt securities issued by ReITs and InvITs.
 NRI-Portfolio Investment Scheme Route is proposed to be merged with the Foreign Portfolio Investment Route.
 Cumulative resources garnered through new financial instruments like Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) as well as models like Toll-Operate-Transfer (ToT) exceed Rs. 24,000 crore.
 New Space India Limited (NSIL), a PSE, incorporated as a new commercial arm of Department of Space.
 To tap the benefits of the Research & Development carried out by ISRO like commercialization of products like launch vehicles, transfer to technologies and marketing of space products.
Direct Taxes
 Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore
 Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore
and Rs. 5 crore and above.
 India‟s Ease of Doing Business ranking under the category of „paying taxes‟ jumped from 172 in 2017 to 121 in the 2019.
 Direct tax revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore Tax Simplification and Ease of living – making compliance easier by leveraging technology:
 Interchangeability of PAN and Aadhaar
o Those who don‟t have PAN can file tax returns using Aadhaar.
o Aadhaar can be used wherever PAN is required.
 Pre-filling of Income-tax Returns for faster, more accurate tax returns
o Pre-filled tax returns with details of several incomes and deductions to be made available.
o Information to be collected from Banks, Stock exchanges, mutual funds etc.
 Faceless e-assessment
o Faceless e-assessment with no human interface to be launched.
o To be carried out initially in cases requiring verification of certain specified transactions or discrepancies.
Affordable housing
 Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh.
o Overall benefit of around Rs. 7 lakh over loan period of 15 years.
Boost to Electric Vehicles
 Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.
 Customs duty exempted on certain parts of electric vehicles.
Other Direct Tax measures
 Simplification of tax laws to reduce genuine hardships of taxpayers:
o Higher tax threshold for launching prosecution for non-filing of returns
o Appropriate class of persons exempted from the anti-abuse provisions of Section
50CA and Section 56 of the Income Tax Act.
Relief for Start-ups
 Capital gains exemptions from sale of residential house for investment in start-ups
extended till FY21.
 „Angel tax‟ issue resolved- start-ups and investors filing requisite declarations and providing information in their returns not to be subjected to any kind of scrutiny in respect of valuations of share premiums.
 Funds raised by start-ups to not require scrutiny from Income Tax Department
o E-verification mechanism for establishing identity of the investor and source of funds.
 Special administrative arrangements for pending assessments and grievance redressal
o No inquiry in such cases by the Assessing Officer without obtaining approval of the supervisory officer.
 No scrutiny of valuation of shares issued to Category-II Alternative Investment Funds.
 Relaxation of conditions for carry forward and set off of losses.
NBFCs
 Interest on certain bad or doubtful debts by deposit taking as well as systemically important non-deposit taking NBFCs to be taxed in the year in which interest is actually received.
International Financial Services Centre (IFSC)
 Direct tax incentives proposed for an IFSC:
o 100 % profit-linked deduction in any ten-year block within a fifteen-year period.
o Exemption from dividend distribution tax from current and accumulated income to companies and mutual funds.
o Exemptions on capital gain to Category-III Alternative Investment Funds (AIFs).
o Exemption to interest payment on loan taken from non-residents.
Securities Transaction Tax (STT)
 STT restricted only to the difference between settlement and strike price in case of exercise of options.
Indirect Taxes
Make In India
 Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera etc.
 Exemptions from Custom Duty on certain electronic items now manufactured in India withdrawn.
 End use based exemptions on palm stearin, fatty oils withdrawn.
 Exemptions to various kinds of papers withdrawn.
 5% Basic Custom Duty imposed on imported books.
 Customs duty reduced on certain raw materials such as:
o Inputs for artificial kidney and disposable sterilized dialyses and fuels for nuclear power plants etc.
o Capital goods required for manufacture of specified electronic goods.
Defence
 Defence equipment not manufactured in India exempted from basic customs duty
Other Indirect Tax provisions
 Export duty rationalized on raw and semi-finished leather
 Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Rs.1 per litre on petrol and diesel
 Custom duty on gold and other precious metals increased
 Legacy Dispute Resolution Scheme for quick closure of pending litigations in Central
Excise and Service tax from pre-GST regime
Grameen Bharat / Rural India
 Ujjwala Yojana and Saubhagya Yojana have transformed the lives of every rural family, dramatically improving ease of their living.
 Electricity and clean cooking facility to all willing rural families by 2022.
 Pradhan Mantri Awas Yojana – Gramin (PMAY-G) aims to achieve “Housing for All” by 2022:
o Eligible beneficiaries to be provided 1.95 crore houses with amenities like toilets,electricity and LPG connections during its second phase (2019-20 to 2021-22).
 Pradhan Mantri Matsya Sampada Yojana (PMMSY)
o A robust fisheries management framework through PMMSY to be established by the
Department of Fisheries.
o To address critical gaps in the value chain including infrastructure, modernization,traceability, production, productivity, post-harvest management, and quality control.
 Pradhan Mantri Gram Sadak Yojana (PMGSY)
o Target of connecting the eligible and feasible habitations advanced from 2022 to 2019 with 97% of such habitations already being provided with all weather connectivity.
o 30,000 kilometers of PMGSY roads have been built using Green Technology, Waste
Plastic and Cold Mix Technology, thereby reducing carbon footprint.
o 1,25,000 kilometers of road length to be upgraded over the next five years under
PMGSY III with an estimated cost of Rs. 80,250 crore.
 Scheme of Fund for Upgradation and Regeneration of Traditional Industries‟(SFURTI)
o Common Facility Centres (CFCs) to be setup to facilitate cluster based development for making traditional industries more productive, profitable and capable for generating sustained employment opportunities.
o 100 new clusters to be setup during 2019-20 with special focus on Bamboo, Honey and Khadi, enabling 50,000 artisans to join the economic value chain.
 Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship‟(ASPIRE) consolidated.
o 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators
(TBIs) to be setup in 2019-20.
o 75,000 entrepreneurs to be skilled in agro-rural industry sectors.
 Private entrepreneurships to be supported in driving value-addition to farmers‟ produce from the field and for those from allied activities.
 Dairying through cooperatives to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing & marketing.
 10,000 new Farmer Producer Organizations to be formed, to ensure economies of scale for farmers.
 Government to work with State Governments to allow farmers to benefit from e-NAM.
 Zero Budget Farming in which few states‟ farmers are already being trained to be replicated in other states.
 India‟s water security
o New Jal Shakti Mantralaya to look at the management of our water resources and water supply in an integrated and holistic manner
o Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural households by 2024
o To focus on integrated demand and supply side management of water at the local level.
o Convergence with other Central and State Government Schemes to achieve its objectives.
o 1592 critical and over exploited Blocks spread across 256 District being identified for
the Jal Shakti Abhiyan.
o Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund can be used for this purpose.
Swachh Bharat Abhiyan
o 9.6 crore toilets constructed since Oct 2, 2014.
o More than 5.6 lakh villages have become Open Defecation Free (ODF).
o Swachh Bharat Mission to be expanded to undertake sustainable solid waste management in every village.
 Pradhan Mantri Gramin Digital Saksharta Abhiyan,
o Over two crore rural Indians made digitally literate.
o Internet connectivity in local bodies in every Panchayat under Bharat-Net to bridge rural-urban divide.
o Universal Obligation Fund under a PPP arrangement to be utilized for speeding up Bharat-Net.
Shahree Bharat/Urban India
 Pradhan Mantri Awas Yojana – Urban (PMAY-Urban)-
o Over 81 lakh houses with an investment of about Rs. 4.83 lakh crore sanctioned of which construction started in about 47 lakh houses.
o Over 26 lakh houses completed of which nearly 24 lakh houses delivered to the beneficiaries.
o Over 13 lakh houses so far constructed using new technologies.
 More than 95% of cities also declared Open Defecation Free (ODF).
 Almost 1 crore citizens have downloaded Swachhata App.
 Target of achieving Gandhiji‟s resolve of Swachh Bharat to make India ODF by 2nd October 2019.
o To mark this occasion, the Rashtriya Swachhta Kendra to be inaugurated at Gandhi Darshan, Rajghat on 2nd October, 2019.
o Gandhipedia being developed by National Council for Science Museums to sensitize youth and society about positive Gandhian values.
 Railways to be encouraged to invest more in suburban railways through SPV structures like Rapid Regional Transport System (RRTS) proposed on the Delhi-Meerut route.
 Proposal to enhance the metro-railway initiatives by:
o Encouraging more PPP initiatives.
o Ensuring completion of sanctioned works.
o Supporting transit oriented development (TOD) to ensure commercial activity around transit hubs.
Youth
 New National Education Policy to be brought which proposes
o Major changes in both school and higher education
o Better Governance systems
o Greater focus on research and innovation.
 National Research Foundation (NRF) proposed
o To fund, coordinate and promote research in the country.
o To assimilate independent research grants given by various Ministries.
o To strengthen overall research eco-system in the country
o This would be adequately supplemented with additional funds.
 Rs. 400 crore provided for “World Class Institutions”, for FY 2019-20, more than three times the revised estimates for the previous year.
 „Study in India‟ proposed to bring foreign students to study in Indian higher educational institutions.
 Regulatory systems of higher education to be reformed comprehensively:
o To promote greater autonomy.
o To focus on better academic outcomes.
 Draft legislation to set up Higher Education Commission of India (HECI), to be
presented.
 Khelo India Scheme to be expanded with all necessary financial support.
 National Sports Education Board for development of sportspersons to be set up under  Khelo India, to popularize sports at all levels
 To prepare youth for overseas jobs, focus to be increased on globally valued skill-sets including language training, AI, IoT, Big Data, 3D Printing, Virtual Reality and Robotics.
 Set of four labour codes proposed, to streamline multiple labour laws to standardize and streamline registration and filing of returns.
 A television program proposed exclusively for and by start-ups, within the DD bouquet of channels.
 Stand-Up India Scheme to be continued for the period of 2020-25. The Banks to provide financial assistance for demand based businesses.
Ease of Living
 About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme that provides Rs. 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors.
 Approximately 35 crore LED bulbs distributed under UJALA Yojana leading to cost saving of Rs. 18,341 crore annually.
 Solar stoves and battery chargers to be promoted using the approach of LED bulbs mission.
 A massive program of railway station modernization to be launched.
Naari Tu Narayani/Women
 Approach shift from women-centric-policy making to women-led initiatives and movements.
 A Committee proposed with Government and private stakeholders for moving forward on Gender budgeting.
 SHG:
o Women SHG interest subvention program proposed to be expanded to all districts.
o Overdraft of Rs. 5,000 to be allowed for every verified women SHG member having
a Jan Dhan Bank Account.
o One woman per SHG to be eligible for a loan up to Rs. 1 lakh under MUDRA Scheme.
India‟s Soft Power
 Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their arrival without waiting for 180 days.
 Mission to integrate traditional artisans with global markets proposed, with necessary patents and geographical indicators.
 18 new Indian diplomatic Missions in Africa approved in March, 2018, out of which 5 already opened. Another 4 new Embassies intended in 2019-20.
 Revamp of Indian Development Assistance Scheme (IDEAS) proposed.
 17 iconic Tourism Sites being developed into model world class tourist destinations.
 Present digital repository aimed at preserving rich tribal cultural heritage, to be strengthened.
Banking and Financial Sector
 NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year.
 Record recovery of over Rs. 4 lakh crore effected over the last four years.
 Provision coverage ratio at its highest in seven years.
 Domestic credit growth increased to 13.8%.
 Measures related to PSBs:
o Rs. 70,000 crore proposed to be provided to PSBs to boost credit.
o PSBs to leverage technology, offering online personal loans and doorstep banking, and enabling customers of one PSBs to access services across all PSBs.
o Steps to be initiated to empower accountholders to have control over deposit of cash
by others in their accounts.
o Reforms to be undertaken to strengthen governance in PSBs.
 Measures related to NBFCs:
o Proposals for strengthening the regulatory authority of RBI over NBFCs to be placed in the Finance Bill.
o Requirement of creating a Debenture Redemption Reserve will be done away with to allow NBFCs to raise funds in public issues.
o Steps to allow all NBFCs to directly participate on the TReDS platform.
 Return of regulatory authority from NHB to RBI proposed, over the housing finance sector.
 Rs. 100 lakh crore investment in infrastructure intended over the next five years.Committee proposed to recommend the structure and required flow of funds through development finance institutions.
 Steps to be taken to separate the NPS Trust from PFRDA.
 Reduction in Net Owned Fund requirement from Rs. 5,000 crore to Rs. 1,000 crore proposed:
o To facilitate on-shoring of international insurance transactions.
o To enable opening of branches by foreign reinsurers in the International Financial
Services Centre.
 Measures related to CPSEs:
o Target of Rs. 1, 05,000 crore of disinvestment receipts set for the FY 2019-20.
o Government to reinitiate the process of strategic disinvestment of Air India, and to offer more CPSEs for strategic participation by the private sector.
o Government to undertake strategic sale of PSUs and continue to consolidate PSUs in
the non-financial space.
o Government to consider going to an appropriate level below 51% in PSUs where the
government control is still to be retained, on case to case basis.
o Present policy of retaining 51% Government stake to be modified to retaining 51% stake inclusive of the stake of Government controlled institutions.
o Retail participation in CPSEs to be encouraged.
o To provide additional investment space:
 Government to realign its holding in CPSEs
 Banks to permit greater availability of its shares and to improve depth of its market.
o Government to offer an investment option in ETFs on the lines of Equity Linked Savings Scheme (ELSS).
o Government to meet public shareholding norms of 25% for all listed PSUs and raise the foreign shareholding limits to maximum permissible sector limits for all PSU companies which are part of Emerging Market Index.
 Government to raise a part of its gross borrowing program in external markets in external currencies. This will also have beneficial impact on demand situation for the government securities in domestic market.
 New series of coins of One Rupee, Two Rupees, Five Rupees, Ten Rupees and Twenty Rupees, easily identifiable to the visually impaired to be made available for public use shortly. Digital Payments
 TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account
 Business establishments with annual turnover more than Rs. 50 crore shall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall
be imposed on customers as well as merchants.
Mega Investment in Sunrise and Advanced Technology Areas
 Scheme to invite global companies to set up mega-manufacturing plants in areas such as Semi-conductor Fabrication (FAB), Solar Photo Voltaic cells, Lithium storage batteries, Computer Servers, Laptops, etc
o Investment linked income tax exemptions to be provided along with indirect tax benefits. Achievements during 2014-19
 1 trillion dollar added to Indian economy over last 5 years (compared to over 55 years taken to reach the first trillion dollar).
 India is now the 6th largest economy in the world, compared to 11th largest five years ago.
 Indian economy is globally the 3rd largest in Purchasing Power Parity (PPP) terms.
 Strident commitment to fiscal discipline and a rejuvenated Centre-State dynamic mprovided during 2014-19.
 Structural reforms in indirect taxation, bankruptcy and real estate carried out.
 Average amount spent on food security per year almost doubled during 2014-19 compared to 2009-14.
 Patents issued more than trebled in 2017-18 as against the number in 2014.
 Ball set rolling for a New India, planned and assisted by the NITI Aayog.
Roadmap for future
 Simplification of procedures.
 Incentivizing performance.
 Red-tape reduction.
 Making the best use of technology.
 Accelerating mega programmes and services initiated and delivered so far.

Pradhan Mantri Awas Yojana – Gramin (PMAY-G) aims to achieve the objective of Housing for all by 2020
Pradhan Mantri Gram Sadak Yojana (PMGSY – III) to upgrade 1,25,000 kms of road length in the next five years with a budget of over Rs. 80,000 crore By 2022, every single willing rural family will have electricity and clean cooking facility

The Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman said tha Pradhan Mantri Awas Yojana – Gramin (PMAY-G) aims to achieve the objective of “Housing for All” by 2020. Presenting the Union Budget 2019-20 in the Lok Sabha today, she said that a total of 1.54 crore rural homes have been completed in the last five years and in the second phase of PMAY-G, from 2019-22, 1.95 crore houses are proposed to be provided to the eligible beneficiaries. The houses will be provided with amenities like toilets, electricity and
LPG connections.

On the Pradhan Mantri Gram Sadak Yojana (PMGSY), the Finance Minister said “PMGSYIII envisages to upgrade 1,25,000 kms of road length over the next five years, with an estimated cost of Rs. 80,250 crore”. She said that to accelerate the speed of achieving universal
connectivity of eligible habitations, the completion target was advanced from 2022 to 2019 and it is heartening to note that all weather connectivity has now been provided to over 97% of such
habitations. This was made possible by maintaining a high pace of road construction of 130 to 135 km per day in the last 1000 days. She added that committed to the agenda of sustainable development, 20,000 kms of PMGSY roads have been built using Green Technology,

Waste

Plastic and Cold Mix Technology, thereby reducing carbon footprint.
Speaking about the Ujjwala and Saubhagya Yojana, the Finance Minister said that they have transformed the lives of every rural family and by 2020, the 75th year of India‟s independence every single rural family will have electricity and a clean cooking facility.

Household access to clean cooking gas has seen an unprecedented expansion, through provision of more than 7 crore LPG connections.

All villages, and almost 100% households across the country have been provided with electricity. Smt. Sitharaman assured the nation that every single rural family, except those who are unwilling to take the connection will have an electricity and a clean cooking facility.

Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI) aims to set up more Common Facility Centres for generating sustained employment opportunities.

SFURTI envisions 100 new clusters in 2019-20 to help 50,000 artisans economically 10,000 new Farmer Producer Organizations to be formed to ensure economies of scale for farmers over the next five years.

Pradhan Mantri Matsya Sampada Yojana to establish a robust fisheries management framework

The Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman said that the Government aims to set up more Common Facility Centres (CFCs) under the „Scheme of Fund for Upgradation and Regeneration of Traditional Industries‟ (SFURTI). Presenting the
Union Budget 2019-20 in the Lok Sabha today, she said this will facilitate cluster based development to make the traditional industries more productive,profitable and capable for generating sustained employment opportunities.

The focused sectors are Bamboo, Honey and Khadi clusters. SFURTI envisions setting up of 100 new clusters during 2019-20 to enable 50,000 artisans to join the economic value chain.

The Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship‟ (ASPIRE) has been consolidated for setting up of Livelihood Business Incubators (LBIs) and Technology Business Incubators (TBIs).

The Scheme contemplates setting up 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) in 2019-20 to develop 75,000 skilled entrepreneurs in agro-rural industry sectors.

The Finance Minister further said that fishing and fishermen communities are closely aligned with farming and are crucial to rural India.

Through a focused Scheme – the Pradhan Mantri Matsya Sampada Yojana (PMMSY) – the Department of Fisheries will establish a robust fisheries management framework. This will address critical gaps in strengthening the value chain, including infrastructure, modernization, traceability, production, productivity, post-harvest
management, and quality control.
Reiterating the government‟s commitment to investing widely in agriculture infrastructure, the Minister said that government will support private entrepreneurship in driving value-addition to farmers‟ produce from the field and those from allied activities, like Bamboo and timber from the hedges for generating renewable energy. She said, “Annadata can also be Urjadata”

. She also announced ,“10,000 new Farmer Producer Organizations will be formed to ensure economies of scale for farmers over next five years. Dairying through cooperatives shall also be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing & marketing”.

On agricultural marketing, the Finance Minister said This Government will work with State Governments to allow farmers to benefit from e-NAM. The Agriculture Produce Marketing Cooperatives (APMC) Act should not hamper farmers from getting a fair price for their produce. Ease of doing business and ease of living both should apply to farmers too. We shall go back to basics on one count: Zero Budget Farming. We need to replicate this innovative model. Steps such as these can truly double our farmers‟ income in time for our 75th year of Independence”

Providing access to safe and adequate drinking water to all Indians is a priority of the Government Jal Jeevan Mission to ensure HarGharJal (piped water supply) to all rural households by 2024.

New Ministry-“Jal Shakti Mantralaya” to manage water resources and water supply in an integrated and holistic manner with the State Governments.

The Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman said that ensuring India‟s water security and providing access to safe and adequate drinking water to all Indians is a priority of the Government.

While, presenting the Union Budget 2019-20 in the Parliament today, Smt. Sitharaman said that a major step in this direction has been the
constitution of the Jal Shakti Mantralaya, integrating the Ministry of Water Resources, River Development and Ganga Rejuvenation and Ministry of Drinking Water and Sanitation.

This new Mantralaya will look at the management of our water resources and water supply in an integrated and holistic manner, and will work with States to ensure HarGharJal हर घर जल– (piped water supply) to all rural households by 2024 under the Jal Jeevan Mission.

This Mission, under the Department of Drinking Water and Sanitation, will focus on integrated demand and supply side management of water at the local level, including creation of local infrastructure for source sustainability like rainwater harvesting, groundwater recharge and management of household wastewater for reuse in agriculture.

The Jal Jeevan Mission will converge with other Central and State Government Schemes to achieve its objectives of sustainable water supply management across the country.
The Finance Minister informed that government has identified 1592 Blocks which are critical and over exploited, spread across 256 Districts for the Jal Shakti Abhiyan. Besides using funds available under various Schemes, the Government will also explore possibility of using additional funds available under the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) for this purpose.

India‟s 10- point „Vision for the Decade‟ flagged in Budget 2019-20 India to become a 3 trillion Dollar Economy this year and a 5 trillion Dollar Economy by 2024-25

India requires Investments averaging Rs. 20 lakh crores every year Gone are the days of policy paralysis and license-quota-control regimes

Indian economy will become a 3 trillion dollar economy in the current year and is on the path of achieving the Prime Minister‟s vision of a 5 trillion dollar economy by 2024-25”, said Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the UnionBudget 2019-20 in Parliament today.

It took over 55 years for the Indian economy to reach 1 trillion dollar and in the last 5 years, the government has added 1 trillion dollar to reach about 2.7 trillion dollar. India is now the sixth largest economy in the world, up from 11th position five years ago, she added.

Beginning her speech on a high note, the Finance Minister termed the recently concluded General Election as an election charged with brimming hope and desire among the citizens of the country for a bright and stable New India. These elections were a stamp of their approval of a performing Government, a Government whose signature was in the last mile delivery, she added.

Finance Minister stated that between 2014-19, the Government provided a rejuvenated CentreState dynamic, cooperative federalism, GST Council, a strident commitment to fiscal discipline and set the ball rolling for a New India, planned and assisted by the NITI Aayog.

In the last five years, the Government initiated many big reforms in particular, in indirect taxation, bankruptcy, real estate and those in the social sector improving common man‟s life. She added that the last mile delivery stood out and the unknown citizen in the nooks of our country stood out with evidence.

The Government has shown by its deeds that the principle of “Reform, Perform, Transform” can succeed. Setting pace for the vision for India in the next decade, the Finance Minister stated that mega programmes and services which were initiated and delivered during the last 5 years will now be further accelerated. The Government plans to simplify procedures, incentivize performance, reduce red-tape and make the best use of technology to achieve the desired goals.

“Gone are the days of policy paralysis and license-quota-control regimes. India Inc. are India‟s job-creators.  They are the nation‟s wealth-creators”, she said while emphasizing the substantial role of India‟s private industry in growing our economy. Citing its genesis in the Interim Budget 2019-20 presented in February 2019, the Finance
Minister flagged ten points of the Government‟s „Vision for the Decade‟:
 Building physical and social infrastructure;
 Digital India reaching every sector of the economy;
 Pollution free India with green Mother Earth and Blue Skies;
 Make in India with particular emphasis on MSMEs, Start-ups, Defence manufacturing,
automobiles, electronics, fabs and batteries, and medical devices;
 Water, water management, clean Rivers;
 Blue Economy;
 Space programmes. Gaganyan, Chandrayan and Satellite programmes;
 Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables;
 Healthy society – Ayushman Bharat, well-nourished women & children. Safety of citizens;
 Team India with Jan Bhagidari. Minimum Government Maximum Governance. Elaborating on the above points, Finance Minister emphasized on an investment-driven growth model to achieve the goal of 5 Trillion dollar economy. She stated that the Government
recognizes that investment-driven growth requires access to low cost capital.

It is estimated that India requires investments averaging Rs. 20 lakh crores every year (USD 300 billion a year).Further, the Finance Minister stated that it is estimated that Railway Infrastructure would need an investment of Rs. 50 lakh crores between 2018-2030. She proposed to use Public-Private -Partnership to unleash faster development and completion of projects and to make available a blueprint this year for developing National Highway Grid, gas grids, water grids, i-ways, and regional airports.

Focusing on unlocking the true potential of Public Sector Undertakings, Finance Minister said that strategic disinvestment of select CPSEs would continue to remain a priority of this Government, along with consolidation of PSUs in the non-financial space.

Government is considering, in case where the Undertaking is still to be retained in Government control, to go below 51% to an appropriate level on case to case basis.

Government is setting an enhanced target of Rs. 1,05,000 crore of disinvestment revenue for the financial year 2019-20, she added.

To prepare India‟s youth to also take up jobs overseas, Finance Minister said that the Government will increase focus on skill sets needed abroad including language training. Focus
would be laid on new-age skills like Artificial Intelligence (AI), Internet of Things, Big Data, 3D Printing, Virtual Reality and Robotics, which are valued highly both within and outside the country, and offer much higher remuneration.

Further in her Budget Speech, Finance Minister also proposed to start a television programme within the DD bouquet of channels exclusively for start-ups, discussing issues affecting their growth, matchmaking with venture capitalists and for funding and tax planning.

Regarding Industry sector, Finance Minister stated that under the Interest Subvention Scheme for MSMEs, Rs. 350 crore has been allocated for FY 2019-20 for 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans. Government will create a payment platform for MSMEs to enable filing of bills and payment thereof on the platform itself. Further, the Government is proposing to streamline multiple labour laws into a set of four labour codes, which is expected to reduce disputes, she added.
Summing up the vision of the Government, Smt. Sitharaman stated, “Marking 75 years of our Independence, We should place emphasis on our „Duty‟ towards India, without undermining „Rights‟.”

UNION BUDGET STRESSES THE NEED FOR HEAVY INVESTMENT IN
INFRASTRUCTURE, DIGITAL ECONOMY AND JOB CREATION IN SMALL AND MEDIUM FIRMS IN TRANSPORT SECTOR, BUDGET PROPOSES PPP IN RAILWAYS.

ROAD MAP TO MAKE INDIA A HUB OF MAINTENANCE, REPAIR AND OVERHAUL AND AIRCRAFT FINANCING / LEASING ACTIVITIES AND DEVELOPMENT OF STATE ROAD NETWORK .

BLUEPRINT FOR DEVELOPING GAS GRIDS, WATER GRIDS, I-WAYS, AND REGIONAL AIRPORTS AND STRUCTURAL REFORMS TO BE ANNOUNCED SOON IN THE POWER SECTOR.

MODEL TENANCY LAW TO BE FINALIZED AND REFORMS TO BE TAKEN UP TO PROMOTE RENTAL HOUSING FOR MSMEs, RS. 350 CRORE ALLOCATED UNDER INTEREST SUBVENTION SCHEME.

A PAYMENT PLATFORM TO BE CREATED TO CUT DELAYS IN
PAYMENTS.

The Union Budget 2019-20 stresses upon the need for heavy investment in infrastructure, digital economy and job creation in small and medium firms to fulfill the aspiration of making India a 5
trillion Dollar economy.

While delivering the budget speech in Parliament today, the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman pointed out that the Indian economy has added one trillion dollar in the last five years due to the various initiatives and reforms undertaken by the Government, and is poised to grow to be a 3 trillion dollar economy in the current year.

Underlining the importance of “Make in India” for fulfilling this goal, the Finance Minister has proposed a number of initiatives as part of a framework for kick-starting the virtuous cycle of domestic and foreign investments.

Union Budget 2019-20

Talking about the importance of programmes like Pradhan Mantri Gram Sadak Yojana.
Industrial Corridors, Dedicated Freight Corridors, Bhartamala, Sagarmala, Jal Marg.
Vikas and UDAN for enhancing physical connectivity through various modes, the Finance.
Minister said these initiatives will improve logistics, reduce the cost of transportation and increase the competitiveness of domestically produced goods.

In the civil aviation sector, the Minister said that the Government will implement the essential elements of a regulatory roadmap for making India a hub for aircraft financing and leasing activities.

This is critical to the development of a self-reliant aviation industry, creating  aspirational jobs in aviation finance, besides leveraging the business opportunities available in India‟s financial Special Economic Zones (SEZs), – International Financial Services Centre
(IFSC).
She also said that the Government will adopt suitable policy interventions to create a congenial atmosphere for the development of Maintenance, Repair and Overhaul (MRO) industry in the country.

For the Railways sector, the Budget has proposed using Public-Private Partnership to unleash faster development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services. The Finance Minister informed that 657 kms of Metro Rail network has become operational across the country.

She also said that India‟s first indigenously developed inter-operable transport card based on National Common Mobility Card (NCMC)
standards, that was launched in March this year will make travel across various modes convenient for people.
Talking about phase-II FAME Scheme that encourages faster adoption of electric vehicles, the Minister said that only advanced battery and registered e-vehicles will be incentivized under the Scheme with greater emphasis on providing affordable and environment friendly public transportation options for the common man.
For the highways sector, the Finance Minister has said that the Government will carry out a comprehensive restructuring of National Highway Programme to ensure that the National Highway Grid of desirable length and capacity is created using financeable model. After completing the Phase 1 of Bharatmala, states will be helped to develop State road networks in the second phase.

Talking about the Government‟s vision for using rivers for cargo transportation, the Finance Minister said that the movement of cargo volume on Ganga is estimated to increase by nearly four times in the next four years.

This will make movement of freight, passenger cheaper and reduce our import bill. In this regard she mentioned the Jal Marg Vikas Project for enhancing the navigational capacity of Ganga, and said that two multi-modal terminals at Sahibganj and Haldia and a navigational lock and Farrakka would be completed this year.

The Finance Minister has further said that in order to take connectivity infrastructure to the next level the Government will make available a blueprint this year for developing gas grids, water
grids, i-ways, and regional airports. This is based on the successful, One Nation, One Grid model that has ensured power connectivity to states at affordable rates.
The Finance Minster further announced that the recommendations of the High Level Empowered Committee (HLEC) on retirement of old and inefficient plants, and addressing low utilisation of Gas plant capacity due to paucity of Natural Gas, will also be taken up for implementation now.

Smt. Sitharaman also said that Government is examining the performance of Ujjwal DISCOM.

Assurance Yojana (UDAY) to improve it further.

She said the Government will work with theState Governments to remove barriers like cross subsidy surcharges, undesirable duties on open access sales or captive generation for Industrial and other bulk power consumers.

Besides these structural reforms, considerable reforms are needed in tariff policy. A package of power sector tariff and structural reforms would soon be announced.
In the housing sector, the Finance Minister announced that several reforms measures would be taken up to promote rental housing and a Model Tenancy Law will soon be finalised and circulated to the states. She further said that public infrastructure and affordable housing will be taken up through innovative instruments such as joint development and concession on land parcels held by Central Public Sector Enterprises.
For the MSME sector, Rs. 350 crore has been allocated for FY 2019-20 under the Interest Subvention Scheme, for 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans.
The Finance Minister further said that the Government will create a payment platform for MSMEs to enable filing of bills and payment. This will help eliminate delays in payment and  give a boost to investment in MSMEs .
The Finance Minister announced that the Government of India has decided to extend the pension benefit to about three crore retail traders and small shopkeepers whose annual turnover is less than Rs.1.5 crore under a new Scheme Pradhan Mantri Karam Yogi Maandhan Scheme.

Enrollment into the Scheme will be kept simple requiring only Aadhaar and a bank account and rest will be on self-declaration.

Government to consider issuing Aadhaar Card for NRIs with Indian Passports.

Government to open four new Embassies in 2019-20.

17 iconic Tourism Sites being developed into world class tourist destinations.

Indian Development Assistance Scheme (IDEAS) to be revamped.

The Union Finance Minister proposed to consider issuing Aadhaar Card for Non Resident Indians with Indian Passports.

She also proposed to launch a Mission that will integrate India‟s traditional artisans and their creative products with global markets. Wherever necessary patents and geographical indicators, will be obtained for them.

India‟s soft power is appreciated in so many different ways. In the last three years, Yoga has been practiced in large numbers on International Yoga Day in 192 countries around the
world.

Mahatma Gandhi‟s favourite bhajan “Vaishnav Jana To Tene Kahiye” was sung in 40 countries by their lead artists. The annual “Bharat Ko Janno” quiz competition is sought after as an event to participate by not only NRIs but also foreigners.

The Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, stated this while presenting the Union Budget

The Finance Minister said, “To give further impetus to India‟s growing influence and leadership in the international community, Government decided to open Indian Embassies and High Commissions abroad in countries where India does not have a Resident Diplomatic Mission as yet”.

In Financial Year 2019-20, Government intends to open four new Embassies.
This will not only increase the footprint of India‟s overseas presence, but will also enable the Embassies to provide better and more accessible public services, especially to the local Indian community in these countries.

In March 2018, Government approved opening of 18 new Indian diplomatic Missions in Africa (in Rwanda; Djibouti; Equatorial Guinea; Guinea; Republic of Congo; Burkina Faso;Cameroon; Mauritania; Cape Verde; Sierra Leone; Chad; Sao Tome and Principe; Eritrea;Somalia; Guinea Bissau; Swaziland; Liberia; and, Togo).

Of these, five Embassies have already been opened in Rwanda, Djibouti, Equatorial Guinea, Republic of Guinea, and Burkina Faso in

IDEAS

The Finance Minister said that in line with its ancient wisdom, India has always pursued a policy of economic cooperation with countries through bilateral and regional coordination.

Mindful of India‟s position as the sixth largest economy, the Government will look at alternative development models which include private sector equity, multilateral financing, contributions
from corporate and non-residents.

The Finance Minister proposed that the IDEAS scheme will be revamped during the current financial year. Indian Development Assistance Scheme (IDEAS) provides concessional financing for projects and contributes to infrastructure development and capacity building in the recipient developing countries.

Iconic Tourism Sites

The Finance Minister said that the Government is developing 17 iconic tourism sites into world class tourist destinations which will serve as a model for other tourism sites. These sites would enhance visitor experience which will lead to increase visits of both domestic and international tourists at these destinations.

Digital repository of tribal cultural heritage Finance Minister announced that with the objective of preserving rich tribal cultural heritage, a digital repository is being developed where documents, folk songs, photos and videos regarding their evolution, place of origin, lifestyle, architecture, education level, traditional art, folk dances and other anthropological details of the tribes in India will be stored. The repository will be further enriched and strengthened.

Lower rate of 25 % Corporate Tax extended to companies with Annual Turnover up to Rs. 400 crore from earlier cap of upto Rs 250 crore.

Interchangeability of PAN and Aadhaar to file tax return proposed 2 % TDS on cash withdrawal exceeding Rs. 1 crore in a year from a bank account to encourage digital payments.

Pre-filled tax returns to be made available to taxpayers to improve accuracy and reduce  time taken to file a tax return.

Scheme of Faceless Assessment in electronic mode being launched in a phased manner to eliminate undesirable practices.

Businesses with Annual Turnover more than Rs. 50 crore to offer low cost digital modes of payment; no MDR charges to be imposed on customers/ merchants.

The Union Budget 2019-20 has proposed to extend the lower rate of 25 % Corporate Tax to all.
companies with annual turnover up to Rs. 400 crore. Currently, this rate is only applicable to  companies having annual turnover up to Rs. 250 crore.

Presenting the General Budget 2019-20 , the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman said, “This will cover 99.3 percent of the companies. Now only 0.7 percent of companies will remain outside this rate”. PAN – Adhaar Interchangeability proposed

The Budget also proposes to make PAN and Aadhaar interchangeable and allow those who do not have PAN to file Income Tax Returns by simply quoting their Aadhaar number and also use it wherever they are required to quote PAN.

The Finance Minister said that more than 120 crore Indians now have Aadhaar and the proposal aims at ease and convenience of tax payers.

Pre-filling of Income-tax Returns

The Finance Minister said that pre-filled tax returns will be made available to taxpayers which will contain details of salary income, capital gains from securities, bank interests, and dividends
etc. and tax deductions. She further said that Information regarding these incomes will be collected from the concerned sources such as Banks, Stock exchanges, mutual funds, EPFO, State Registration Departments etc.

“This will not only significantly reduce the time taken to file a tax return, but will also ensure accuracy of reporting of income and taxes”, the Minister added.

Faceless e-assessment to eliminate undesirable practices 

In her speech, the Finance Minister said that the existing system of scrutiny assessments in the Income-tax Department involves a high level of personal interaction between the taxpayer and the Department, which leads to certain undesirable practices on the part of tax officials. To eliminate such instances, and to give shape to the vision of the Prime Minister, the FM said that a scheme of faceless assessment in electronic mode involving no human interface is being launched this year in a phased manner. To start with, such e-assessments shall be carried out in cases requiring verification of certain specified transactions or discrepancies, she added.
The Finance Minister further said that the cases selected for scrutiny shall be allocated to assessment units in a random manner and notices shall be issued electronically by a Central Cell, without disclosing the name, designation or location of the Assessing Officer.

“The Central Cell shall be the single point of contact between the taxpayer and the Department. This new scheme of assessment will represent a paradigm shift in the functioning of the Income Tax Department”,she said in her speech.

Slew of Measures to Encourage Digital Payments

The Budget also proposes to levy TDS of 2 percent on cash withdrawal exceeding Rs. 1 crore in a year from a bank account. This is in continuation of a number of initiatives taken in the recent
past for the promotion of digital payments and less cash economy, and to promote digital payments further, said the Minister.
The low-cost digital modes of payment such as BHIM UPI, UPI-QR Code, Aadhaar Pay, certain Debit cards, NEFT, RTGS etc. will promote less cash economy. The Finance Minister proposed that the business establishments with annual turnover more than Rs. 50 crore shall offer such low cost digital modes of payment to their customers and no charges or Merchant Discount Rate (MDR) shall be imposed on customers as well as merchants.

She added, “RBI and Banks will absorb these costs from the savings that will accrue to them on account of handling less cash as
people move to these digital modes of payment”.

Simplification and Ease of Living Noting that India‟s Ease of Doing Business ranking under the category of „paying taxes‟ showed
a significant jump from 172 in 2017 to 121 in the 2019, the Finance Minister said above measures will leverage technology to make compliance easier for the taxpayers.
The Budget also proposes to simplify the tax law to reduce genuine hardships to taxpayers which include enhancing threshold of tax for launching prosecution for non-filing of returns from Rs. 3,000 to Rs. 10,000, for proceeding against a person and exempting appropriate class of persons from the anti-abuse provisions of section 50CA and section 56 of the Income Tax Act.

RS. 400 CR ALLOCATED FOR CREATING WORLD CLASS EDUCATIONAL INSTITUTIONS.

NEW EDUCATION POLICY FOR REFORMS IN SCHOOL AND HIGHER
EDUCATION.

NATIONAL RESEARCH FOUNDATION (NRF) ANNOUNCED TO STEP UP.

RESEARCH IN THRUST AREAS

NATIONAL SPORTS EDUCATION BOARD FOR DEVELOPMENT OF
SPORTS PERSONS TO BE SET UP UNDER KHELO INDIA.

An amount of Rs. 400 crore has been provided for FY 2019-20 to create “World Class Institutions” in the field of education which is more than three times the revised estimates for the previous year. This was stated by the Union Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman while presenting the Union Budget 2019-20 in the Parliament today.

The
Finance Minister assured that the Government will also bring in a New National Education Policy to transform India‟s higher education system to one of the global best education systems.
The new Policy proposes major changes in both school and higher education among others, better Governance systems and brings greater focus on research and innovation.
To achieve the objectives of research and innovation, the Finance Minister also announced setting up of a National Research Foundation (NRF) to fund, coordinate and promote research in the country. NRF will ensure that the overall research eco-system in the

UNION BUDGET 2019-20

country is strengthened with focus on identified thrust areas relevant to our national priorities and towards basic science without duplication of effort and expenditure, the Minister explained.
The funds available with all Ministries will be integrated in NRF and would be adequately supplemented with additional funds.
Smt Nirmala Sitharaman also announced the programme „Study in India‟, that will focus on bringing foreign students to study in our higher educational institutions. The Finance Minister
disclosed that a draft legislation for setting up Higher Education Commission of India (HECI) would be presented in the year ahead. This will help to comprehensively reform the regulatory system of higher education to promote greater autonomy and focus on better academic outcomes.
Smt Nirmala Sitharaman said that the Khelo India Scheme will be expanded to provide all necessary financial support and a National Sports Education Board for Development of Sports persons would be set up under Khelo India Scheme to popularize sports at all levels.
Highlighting the recent achievements, Smt Nirmala Sitharaman said that while there was not a single Indian institution in the top 200 in the world university rankings five years back, there are three institutions now – two IITs and IISc Bangalore – in the top 200 bracket.

This has been achieved due to concerted efforts by the institutions to boost their standards and also project their credentials better.
Giving further details, the Finance Minister said that Massive online open courses through the SWAYAM initiative have helped bridge the digital divide for disadvantaged section of the student community. To up-grade the quality of teaching, the Global Initiative of Academic
Networks (GIAN) programme in higher education was started, aimed at tapping the global pool of scientists and researchers, she explained.

The IMPRINT or IMPacting Research INnovation and Technology scheme began as a Pan-IIT and IISc joint initiative to develop a roadmap for research to solve major engineering and technology challenges in selected domains needed by
the country. It is because of this that Higher Educational Institutions are now becoming the centres of innovation, the Minister said.

GST processes further simplified; businesses with less than Rs. 5 crore annual turnover to file quarterly GST returns; threshold for goods supplier to be enhanced from Rs. 20 lakhs to Rs. 40 lakhs.

Sabka Vishwas Legacy Dispute Resolution Scheme to resolve litigations involving more than Rs. 3.75 Lakh Crore of pre-GST regime
Customs duty exemption for defence equipment not being manufactured in India; hike in Customs duty on certain items to promote Make in India.

Increase of one Rupee per litre each in Excise duty & cess on Petrol & Diesel; custom duty on Gold and other precious metals hiked from 10% to 12.5%; nominal basic excise duty on tobacco products and crude introduced.

Further simplification of the GST processes, increasing Special Additional Excise duty and Road and Infrastructure Cess on petrol and diesel by one rupee each, hike in Customs Duty on Gold and precious metals to 12.5% and imposing nominal basic excise duty on tobacco products and crude are among the salient proposals pertaining to the Indirect Taxes in the Union Budget 2019-20.

It also provides for exempting import of certain Defence Equipments from basic customs duty, reducing customs duty on certain raw materials and capital goods, and rationalization of export duty on raw and semi-finished leather.
GST

Presenting the Budget in Parliament today, the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman announced that GST processes are being further simplified.

The threshold exemption limit for a supplier of goods is proposed to be enhanced from Rs. 20 lakhs to an amount exceeding Rs. 40 lakhs.
“Tax payers having annual turnover of less than Rs. 5 Crore shall file quarterly return. Free accounting software for Return preparation has been made available to small businesses. A fully automated GST refund module shall be implemented. Multiple tax ledgers for a tax payer shall be replaced by one”, she said.
The Budget proposes to move to an electronic invoice system wherein invoice details will be captured in a central system at the time of issuance.

“This will eventually be used to prefill the taxpayer’s returns. There will be no need for a separate e-way bill. To be rolled out from January 2020, the electronic invoice system will significantly reduce the compliance burden”, said Smt. Sitharaman.

The Finance Minister said that the landscape of Indirect Tax has changed significantly with the implementation of GST. Terming it as a “monumental reform”, Smt. Sitharaman said the GST regime has brought together the Centre and the States with the result 17 taxes and 13 cesses became one and multitude of rates instantly became four.

“Almost all commodities saw rate reduction. Tens of returns were replaced by one. Taxpayers‟ interface with tax departments
got reduced. Border checks got eliminated. Goods started moving freely across states, which saved time and energy. The dream of „One Nation, One Tax, One Market‟ was realized,” she said.

Complimenting the GST Council, the Finance Minister said the Council, Centre and States proactively worked to resolve the teething problems witnessed during the initial phase of GST.

Smt. Sitharaman said that GST rates have been reduced significantly where relief of about Rs. 92,000 crores per year has been given.
Sabka Vishwas Legacy Dispute Resolution Scheme.

On the issue of huge pending litigations from pre-GST regime, the Minister said that there is a need to unload the baggage and allow business to move on, as more than Rs. 3.75 Lakh.

Crore is blocked in litigations in Service Tax and Excise. The budget proposes a dispute resolution-cum-amnesty scheme, called “the Sabka Vishwas Legacy Dispute Resolution Scheme,

2019” that will allow quick closure of these litigations. The relief under the scheme varies from 40 percent to 70 percent of the tax dues for cases other than voluntary disclosure cases, depending on the amount of tax dues involved. The scheme also provides relief from payment of interest and penalty. The person discharged under the scheme shall also not be liable for prosecution.

Customs duty

On the Customs duty, the Finance Minister said the proposals are driven with the
objectives of securing the country‟s borders, achieving higher domestic value addition through Make in India, reducing import dependence, protection to MSME sector, promoting clean energy, curbing non-essential imports, and correcting inversions. Describing Defence Modernization and Upgradation as a national priority and of immediate requirement, the budget proposes exemption from the basic Customs duty on import of such defence equipment that are not being manufactured in India.

Make in India

Describing Make in India as a cherished goal, the Finance Minister proposed increase in
basic Custom duty on certain items so as to provide domestic industry a level playing field.
These items include PVC, cashew kernels, Vinyl flooring, tiles, metal fittings, mountings for furniture, auto parts, certain kinds of synthetic rubbers, marble slabs, optical fibre cable, CCTV camera, IP camera, digital and network video recorders. She also proposed to withdraw exemption from custom duty on certain electronic items which are now being manufactured in India. To encourage domestic publishing and printing industry, 5% custom duty will be imposed on imported books.

To further promote domestic manufacturing, the budget proposes customs duty
reductions on certain raw materials and capital goods. These include certain inputs of CRGO sheets, amorphous alloy ribbon, ethylene di-chloride, propylene oxide, cobalt matte, naphtha,
wool fibres, inputs for manufacture of artificial kidney and disposable sterilised dialyser, and fuels for nuclear power plants. The Finance Minister announced exemption on certain parts of electric vehicles to further incentivize e-mobility. vDuty & Cess on Petrol & Diesel.

The Budget proposes to increase Special Additional Excise duty and Road and
Infrastructure cess each by one rupee a litre on petrol and diesel. “Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol,” the Finance Minister said.
Smt. Sitharaman also announced increase in custom duty on gold and other precious
metals from 10% to 12.5%..

The Budget also proposes rationalization of export duty on raw and semi-finished leather
to provide relief to the sector.

Duty on Tobacco products & Crude

Smt. Sitharaman said that tobacco products and crude attract National Calamity and
Contingent duty which in certain cases is being contested on the ground that there is no basic excise duty on these items. To address this issue, the Budget proposes to impose a nominal basic excise duty on tobacco products and crude.

The Finance Minister proposed a few amendments to the Customs Act. She said, “Recent
trends reveal that certain bogus entities are resorting to unfair practices to avail undue
concessions and export incentives.” She announced that misuse of duty free scrips and drawback facility involving more than 50 Lakh rupees will be a cognizable and non-bailable offence.

Start-ups and their investors filing requisite declarations not to be subjected to any
scrutiny regarding valuations of share premiums.

E-verification mechanism proposed for establishing identity of the investor and source of
his funds TV programme proposed exclusively for Start-ups within the DD bouquet of channels.
Government to launch scheme inviting global companies to set up mega-manufacturing
plants in sunrise and advanced technology areas.

The Start-ups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums.
This has been proposed in the Union Budget 2019-20 presented by the Union Minister of
Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament today with a view to resolve the so-called „Angel Tax‟ issue.
In her Budget speech, the Finance Minister said that the issue of establishing identity of the investor and source of his funds will be resolved by putting in place a mechanism of e-verification.
With this, funds raised by start-ups will not require any kind of scrutiny from the
Income Tax Department, she said.
The Minister said that in addition, Special Administrative arrangements shall be made by Central Board of Direct Taxes (CBDT) for pending assessments of start-ups and redressal of their grievances. “It will be ensured that no inquiry or verification in such cases can be carried out by the Assessing Officer without obtaining approval of his supervisory officer”, she added.

At present, start-ups are not required to justify fair market value of their shares issued to certain investors including Category-I Alternative Investment Funds (AIF). The Finance Minister proposed to extend this benefit to Category-II Alternative Investment Funds also. Therefore,
valuation of shares issued to these funds shall be beyond the scope of income tax scrutiny, she added.
The Finance Minister proposed to relax some of the conditions for carry forward and set off of losses in the case of start-ups. She also proposed to extend the period of exemption of capital gains arising from sale of residential house for investment in start-ups up to 31.3.2021 and relax certain conditions of this exemption.

TV Programme Exclusively for Start-ups within the DD Bouquet of Channels
Besides the above tax benefits, the Finance Minister also proposed to start a television
programme within the DD bouquet of channels exclusively for start-ups. This shall serve as a platform for promoting start-ups, discussing issues affecting their growth, matchmaking with venture capitalists and for funding and tax planning. This channel shall be designed and executed by start-ups themselves.

Mega Investment in Sunrise and Advanced Technology Areas In order to boost economic growth and Make in India, the Finance Minister said that the Government will launch a scheme to invite global companies through a transparent competitive bidding to set up mega-manufacturing plants in sunrise and advanced technology areas such as
Semi-conductor Fabrication (FAB),

Solar Photo Voltaic cells, Lithium storage batteries, Solar electric charging infrastructure, Computer Servers, Laptops, etc. and provide them investment linked income tax exemptions under section 35 AD of the Income Tax Act, and other indirect tax benefits.

Stand-Up India Scheme extended till 2025

Government proposes streamlining multiple labour laws into a set of four Labour Codes
New-age skills like AI, Big Data, VR, Robotics and Internet of Things to be promoted.

The Stand Up India Scheme has been extended upto the year 2025. This was stated by
the Union Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman while presenting the Union Budget 2019-20 in the Parliament today. “Stand-Up India Scheme has delivered enormous benefits. The country is witnessing emergence of thousands of entrepreneurs from women and also from the Scheduled Castes and Scheduled Tribes, most of them assisted to set up their businesses and industry with capital provided under the Stand-Up India Scheme”, she said.

The Minister said that banks will provide financial assistance for demand based businesses under this scheme, including for acquisition of scavenging machines and robots.
The Finance Minister said that the Government also proposes to streamline multiple
labour laws into a set of four labour codes which will ensure the standardisation and streamlining
of the process of registration and filing of returns, which is further expected to reduce the
disputes.
Highlighting the achievements of the Government in the field of skill development, the
Finance Minister said that through the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the Government enables about 10 million youth to take up industry-relevant skill training. To prepare the youth for the future and also to take up jobs overseas, the Government will increase.

focus on skill sets needed abroad including language training, the Minister explained. She also added that focus shall be given to new-age skills like Artificial Intelligence (AI), Internet of Things, Big Data, 3D Printing, Virtual Reality and Robotics, which are valued highly both within and outside the country, and offer much higher remuneration.
The Finance Minister, Smt. Nirmala Sitharaman said that under Pradhan Mantri Rojgar
Protsahan Yojana (PMRPY), the Government contribution to the Pension Scheme has been increased from 8% in 2016-17 to 12% for both Employees Provident Fund and Employee‟s Pension Scheme for all sectors w.e.f. 01.04.2018.

As a result of this measure, number of beneficiaries increased by almost 88 lakhs during FY 2018-19. As on 31.03.2019, total beneficiaries under the Scheme are 1,18,05,000 and the establishments benefiting are 1,45,512.

FOR MORE DETAIL CLICK ON THE BELOW LINK…….

http://pib.nic.in/newsite/docpagenew.aspx?docid=652

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