Highlights of 2019 Financial Budget

On Tax front :

Tax Relief :

  • 25% tax for all the companies with annual turnover of Rs 400 crore.
    *Deduction of interest on loan taken to purchase self-occupied house property was increased from Rs. 1.5 lakh to Rs 2 lakh.
  • Holding period for long-term gain on immovable property was reduced from 36 months to 24 months.
  • Government waives MDR charges on cashless payment.

Direct Tax :

  • 25% tax for all the companies with annual turnover of Rs 400 crore.
  • TDS @ 2% on cash withdraw more than 1 crore in a year from a bank account.
  • Surcharge for individuals having an income between 2-5 crore @ 3% and for those having 5 crore and above @ 7%

Indirect Taxes :

  • GST rate reduced from 12% to 5 % for electrical cars. Also Income tax befit for interest paid of upto 1.5 lakhs for loan taken for electric vehicles.
  • Rs 1 cess on petrol and diesel
  • Custom duty on gold to increase from 10% to 12.5%.

Other important announcements :

  • Fiscal deficit in FY 19 is at 3.3% of the GDP.
  • India to become $3 trillion economy this year.
  • Pension for shopkeeper and retailers having turnover of less than 1.5 crore.
  • PM Karm Yogi scheme has been announced which will require only Aadhar card and a bank account to avail the benefit of the scheme.
  • Public holding in listed firms may go up to 35% from the current 25%.
  • Rs 70,000 crore for PSU banks.
  • Social stock exchange to boost social schemes.
  • 1.95 crore houses for the poor by 2022.

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