Setting up a unit in SEZ

Union Budget 2019-20

Budget Highlights

  • Expenditure: the govt. proposes to pay Rs twenty seven,86,349 large integer in 2019-20, that is thirteen.4% higher than the revised estimate of 2018-19.
  • Receipts: The receipts (other than web borrowings) ar expected to extend by fourteen.2% to Rs twenty,82,589 crore, because of higher calculable revenue from corporation tax and dividends.
  • GDP growth: the govt. has assumed a nominal gross domestic product rate of growth of 12-tone system (i.e., real growth and inflation) in 2019-20. The nominal growth estimate for 2018-19 was eleven.5%.
  • Deficits: Revenue deficit is targeted at two.3% of GDP, that is more than the revised estimate of two.2% in 2018-19. commercial enterprise deficit is targeted at three.3% of GDP, less than the revised estimate of three.4% in 2018-19. Note that the govt. is calculable to breach its budgeted target for commercial enterprise deficit (3.3%) in 2018-19 and also the medium term commercial enterprise target of three.1% in 2019-20.
  • Ministry allocations: Among the highest thirteen ministries with the best allocations, the best share increase is determined within the Ministry of Agriculture and Farmers’ Welfare (82.9%), followed by Ministry of rock oil and gas (32.1%) and Ministry of Railways (23.4%).

Tax proposals within the Finance Bill
In addition to changes in tax laws, the Finance Bill, 2019 proposes changes in many alternative laws like the SEBI Act, The run batted in Act, the CGST Act, and also the PMLA Act. These ar elaborate on Page nine.

  • Surcharge on financial gain tax: presently, a surcharge of V-day is levied on the financial gain of people earning over one large integer rupees, and 100 percent on financial gain of people earning between Rs fifty hundred thousand and one large integer rupees. within the Union Budget 2019-20, the surcharge on tax for people earning between 2 large integer rupees and 5 large integer rupees has been increased to twenty fifth and for persons earning over 5 large integer rupees has been increased to thirty seventh.
  • Corporation tax: presently, firms with annual turnover of but Rs 250 large integer pay company tax at the speed of twenty fifth. This threshold has been increased to Rs four hundred large integer.
  • Tax on money withdrawals: A TDS of twenty-two are levied by money firms and post offices on people for money withdrawals extraordinary one large integer rupees in an exceedingly year from a checking account.
  • Tax exemption for reasonable housing: a further write-down of up to Rs one,50,000 are provided on interest paid on loans for self-occupied householders. The conditions for availing this deduction are: (i) the loan should be sanctioned in FY 2019-20, (ii) the taxation on the house shouldn't exceed Rs forty five hundred thousand rupees, and (iii) the individual shouldn't own another residential house property as of the date of the house loan.
  • Tax exemptions for electrical vehicles: A write-down of up to Rs one,50,000 are provided on interest paid on loans to buy an electrical vehicle. This deduction are applicable for loans sanctioned between FY 2019-20 and FY 2022-23.
  • Road and infrastructure cess: The Road and Infrastructure Cess on hydrocarbon and high-speed diesel has been increased by one rupee per cubic decimeter. Excise duty has additionally been increased by one rupee per cubic decimeter for these product.
  • Customs duty: The custom on gold and precious metals are increased from 100 percent to twelve.5%.

Policy Highlights

  • Banking and Finance: the govt. plans to partly guarantee (for 1st 100 percent of loss) Public Sector Banks for funds provided in an exceedingly pooled manner to NBFCs. Further, Rs 70,000 large integer are provided for recapitalisation of Public Sector Banks.
  • Government borrowings: presently, the gross borrowing programme of the govt. is funded entirely through domestic borrowings. the govt. plans to lift a neighborhood of its borrowings abroad in foreign currency.
  • Infrastructure: The central government can invest Rs one hundred hundred thousand large integer in infrastructure over consecutive 5 years. phase II clinical trial of the Bharatmala project are launched beneath that state highways are developed. Public personal partnerships are leveraged for railways to draw in associate investment of Rs fifty hundred thousand large integer throughout the amount 2018-30. A blue print are created for developing gas-grids, water-grids, i-ways (communication networks) and regional airports on the lines of the One Nation–One Grid for power. Structural reforms within the power sector (including tariff) are proclaimed.
  • Industry: The minimum public belongings in listed firms are increased from twenty fifth to thirty fifth. a brand new electronic fund raising platform are created for listing social enterprises and voluntary organisations. this policy of fifty one stake of presidency in non-financial PSUs are changed to incorporate stake of presidency controlled establishments.
  • Investments: 100 percent Foreign Direct Investment (FDI) are allowable for insurance intermediaries. native sourcing norms are mitigated for FDI within the single whole retail sector. Further, reposeful of the FDI norms in aviation, media and insurance sectors are examined. Statutory limit for Foreign Portfolio Investment are increased from this pure gold to sectoral limits. Foreign belongings limits in PSUs are increased to the utmost permissible sectoral limit.
  • Agriculture and allied activities: Pradhan Mantri Matsya Sampada Yojana has been projected to deal with infrastructure gaps within the fisheries sector. 10,000 new Farmer Producer Organisations are setup over consecutive 5 years. The central government can work towards adoption of zero-budget farming.
  • Rural Development: beneath the Pradhan Mantri Gram Sadak Yojana, 1.25 hundred thousand klick of road are upgraded at associate calculable price of Rs eighty,250 large integer within the next 5 years. one hundred new clusters are setup beneath the theme of Fund for Upgradation and Regeneration of ancient Industries (SFURTI). All rural households are given piped water by 2024 beneath the Jal Jeevan Mission. Swachh Asian country Mission are enlarged to undertake solid waste management in each village.
  • Social Justice: associate draft of Rs five,000 are provided to ladies assistance cluster (SHG) members World Health Organization hold Jan-Dhan accounts. Further, a loan up to 1 hundred thousand rupees are provided beneath the gesture theme to 1 girl in each SHG.
  • Social Security: a brand new pension profit theme, particularly Pradhan Mantri Karam Yogi Maandhan theme, has been proclaimed for traders and tiny shopkeepers with annual turnover of but Rs one.5 crore.
  • Education: The new National Education Policy are introduced. The National analysis Foundation are setup to push funding and coordinate analysis within the country. A Study in India programme are launched to encourage foreign students in pedagogy.
  • Legislative Framework: to push rental housing, a model abidance law are finalised and circulated. the upper Education Commission of India Bill are introduced. completely different multiple labour laws are efficient into a group of 4 labour codes.

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