Finance Minister Nirmala Sitharaman presented the first Budget of Modi Government 2.0.
Key Budget highlights – July 2019
- Increased surcharge on Individual Income of Rs.2 to 5 crores and over Rs.5 crore, by 3% and 7% respectively
- Corporate Tax, the lower rate of 25% is applicable to companies with an annual turnover of Rs 250 crore earlier. Now it’s further widened for companies with an annual turnover of up to Rs 400 crore, covering 99.3% of all companies.
- Income Tax deduction of Rs 1.5 Lakh on the interest paid on loans for Electric Vehicles
- Extend the period of exemption of capital gains arising from the sale of residential house for investment in start-ups up to March 2021.
- Additional tax deduction of Rs 1.5 Lakh on interest paid on housing loans for self-occupied house, this makes effective tax relief up to Rs 3.5 lakh on interest paid, making housing loan affordable
- It’s proposed to have Interchangeability of PAN and Aadhaar Number. Those who don‟t have PAN can file tax returns using Aadhaar. Aadhaar can be used wherever PAN is required.
- Pre-filling of Income-tax Returns for faster and more accurate tax returns, from the data collected from various sources like Employers / Banks, etc.
- Faceless e-Assessment with no human interface to be launched by the Income Tax Department
- To discourage the practice of making business payments in cash, TDS of 2% to be levied on cash withdrawal exceeding Rs 1 crore a year from a bank account has been proposed.
- Proposed to increase Special Additional Duty And Road & Infrastructure cess, on Diesel and Petrol by Re 1 per litre.
- Customs duty on gold increased from 10% to 12.5%.
- Interest amount deduction enhanced to 3.5 lakh for housing loan taken up to March 31, 2020 for purchase of house upto 45 lakh.
- According to Pradhan Mantri Karam Yogi Maandhan, retail traders and small shopkeepers to get pension.