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Budget 2019

Income Tax

  • Additional  ₹1.5 lakh income tax deduction on home loan interest paid for buyers of affordable homes till March 2020.
  • Additional income tax deduction of  ₹1.5 lakh to buyers of electric vehicles.
  • Start-ups won’t be subject to scrutiny on angel tax.
  • PAN and Aadhaar to be interchangeable, and to allow those without PAN to file income tax by using Aadhaar number.
  • Faceless and anonymous assessment system for income tax being rolled out this year in phases.
  • Period of exemption for capital gains arising from sale of house for investment in startups to be extended to March 31, 2021.
  • GST rate on electric vehicles already proposed to be lowered to 5%. Lower rate of 25% so far only applicable to companies with turnover of ₹250 crore. Propose to increase this limit to companies with annual turnover of ₹400 crore. This will cover 99.3% of companies.
  • TDS of 2% on cash withdrawals exceeding ₹1 crore from bank accounts, to discourage business payments in cash.
  • Taxpayers to get online pre-filled documents after govt secures data from banks, MFs, insurance companies.
  • Those earning more than Rs. 2 crore annually to pay higher surcharge.
  • Additional excise duty of Re 1 on petrol and diesel to be imposed.
  • Customs duty on gold and precious metals hiked to 12.5% from 10%

Housing and Electricity

  • Finance Minister Nirmala Sitharaman says India plans electricity, clean cooking facilities for all Indian families by 2022.
  • Aiming to achieve housing for all by 2022.
  • To ensure ‘har ghar jal’ by 2024
  • 1.25 lakh kilometers of roads will be upgraded


  • Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan Scheme


  • Finance minister proposes Rs. 50 lakh crore investment for railway infrastructure between 2018 and 2030.
  • Also proposes to use public private partnership for faster development and completion of tracks.


  • Bank NPAs have reduced by  ₹1 lakh crore.
  • PSU banks to be provided  ₹70,000 crore to boost capital.
  • Budget proposes to provide PSU banks one-time 6-month credit guarantee of Rs1 lakh crore to buy high-rated pooled assets of “sound” NBFCs.

Foreign Investment

  • Budget proposes to hike foreign shareholding cap in PSUs to sectoral limit.
  • Government plans structural reforms to kickstart foreign and domestic investment.

You can see the Finance Bill No. 2 2019 from here.

About Prateek Agarwal

Prateek Agarwal is a Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He writes mainly about GST and Finance.

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One comment

  1. Quick & good overview..Thanks

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