New Delhi, July 6: To realise the dream of making India a $ 5 trillion economy in the next few years, Union Finance Minister Nirmala Sitharaman on Friday presented a Budget which lays huge emphasis on investment and consumption. To boost investment, Nirmala Sitharaman, in Union Budget 2019-20, eased FDI in the insurance and aviation sectors and reduced taxes for corporates. The Finance Minister, however, raised taxes on the super-rich in her maiden Budget. Budget 2019: Minority Education Fund Slashed, Allocation For Free UPSC Coaching Raised.
In a bid to make India a more attractive FDI destination, Sitharaman said the Modi government will ease foreign direct investment (FDI) restrictions in single-brand retail, open up FDI in sectors such as aviation, insurance, media and animation, and allow foreign investors to buy debt of listed real estate investment trusts (REITs). She also proposed to increase the surcharge on individuals having taxable income from Rs 2 crore to Rs 5 crore or above. Budget 2019: 10 Good News From Nirmala Sitharaman's First Financial Blueprint.
Nirmala Sitharaman's Budget 2019-20 in 10 Points:
- In a bid to encourage digital transactions and curb black money, Sitharaman proposed tax deduction at source (TDS) of two per cent on cash withdrawals exceeding Rs 1 crore in a year from a bank account.
- Sitharaman proposed to reduce corporate tax for companies with an annual turnover of up to Rs 400 crore to 25 per cent from 30 per cent now.
- The Finance Minister announced an additional deduction up to Rs 1.5 lakhs for interest paid on loans borrowed up to March 31, 2020, for purchase of house valued up to Rs 45 lakh.
- In order to boost credit, the Finance Minister proposed to provide Rs 70,000 crore to public sector banks.
- To raise tax collection, Sitharaman said income tax returns can now be filed using either Aadhaar card or PAN card.
- Sitharaman announced relaxation in rules for NRIs to get Aadhaar card. NRIs can now obtain Aadhaar card get on arrival by showing their passport. NRIs currently need to have spent 180 days to be eligible for an Aadhaar card.
- With an aim to reduce imports along with spurring domestic production, Sitharaman proposed to raise customs duty on over 70 items.
- The Finance Minister announced an additional special excise duty (SAED) of Re 1 and a road and infrastructure cess of Re 1 per litre on both petrol and diesel, a move set to hike fuel prices.
- The government allocated Rs 3,01,694 crore for subsidy on three major components -- food, fertiliser and petroleum -- in Budget 2019-20, which is 13.32 per cent higher than the Budget (Revised) 2018-19.
- The government also allocated Rs 1,51,518 crore to the agriculture sector, which is a whopping 75 per cent hike year-on-year. Out of total allocation, Rs 75,000 crore will be utilised for the PM KISAN scheme.
Budget 2019: Highlights From Finance Minister Nirmala Sitharaman's Speech
Prime Minister Narendra Modi lauded the Union Budget 2019-2020, as the budget for building New India. In a statement after the presentation of the Union Budget, the Prime Minister said that budget will strengthen the poor and will create a better future for the youth of the country. "The budget will simplify the tax process and help in modernizing the infrastructure in the country," PM said.