Union Budget 2019-20: Highlights. Here’s What You Need To Know. By Vikram Shah - December 6, 2019 Last Updated at: Jun 13, 2020 21470 The new Finance Minister presented the maiden Union Budget for the financial year 2019-2020 on July 5. In the prequel February Interim Budget, we had witnessed reduced taxes, benefitting the middle class; Rs 75,000 crore income schemes for farmers. With welcoming the public feedback on social media and stakeholder consultations on agriculture and rural development, and trade and industry, the 2019-20 budget was expected to include the following in the final announcement: Get Legal Advice Increased coverage of the ‘Pradhan Mantri Kisan Samman Nidhi’ or PM Kisan scheme at an estimate of Rs 75,000. Through this scheme, small and marginal farmers, owing less than 2 acres of land, receive Rs 6,000 in cash in a year in three instalments directly transferred to their accounts. This budget will cover an additional 5 crore farmers at an estimated budget of Rs 85,000. Policy measures to improve farm income; new channels in agriculture-allied services; employment schemes to enhance rural consumers. Banking cash transaction tax (BCTT): It is believed that the govt is trying to bring back this system that was introduced in 2005. The reason being after demonetisation and GST there has been a wealth of information collected like PAN, Aadhar. Indeed, the report says that nearly 23.5 lakh PANs appeared suspicious. Dividend distribution tax: According to media reports, during the meeting, the CII body had suggested to bring down the existing rate from 20% to 10%. Challenges faced: Currently, the Finance Ministry faces a few challenges which acts as the crisis in NBFCs and the GDP growth slowdown. Per the reports, the GDP growth fell to 5.8% in the March quarter. Cut down on corporate taxes: The Federation of Indian Chambers of Commerce & Industry (FICCI) had suggested the cut-down. Major Announcements of Union Budget 2019-2020 – Highlights: The following were the actual announcements made during the budget meeting. PAN and Aadhaar are being interchangeable. You can use your Aadhaar number to easily file your I-T Returns. Announced minimum Rs.5 lakh limit for taxpayers. Given the increased revenue, the effective tax rate will increase by 3% and 7% for those in Rs.2-5 crore and Rs.5 crore-and-above brackets. Rs.1 hiked fuel excise duties. Startups will not be subject to any valuation review to address the angel tax problem. The I-T department will not need to examine funds raised by startups. 2% TDS cash withdrawals of more than Rs.1 crore from bank accounts in a year to deter corporate payments in cash. The exemption period shall continue to 31 March 2021 for capital gains resulting from the selling of the house for startup investment. The government also proposed the GST rate to 5 per cent on electric vehicles. Additional income tax deduction on interest on loans taken to buy electric vehicles from Rs.1.5 lakh. Additionally, added deduction of Rs.1.5 lakh on loans to buy affordable houses up to March 31 2020, giving home buyers Rs.7 lakh gain. Offering NRIs with Indian passports to Aadhaar Cards without any waiting period after they arrive in India. Rs.20 coin to be introduced into the market. Rs.70,000 crore in public sector recapitalization. Rs.1.05 lakh crore annual disinvestment goal. The government will also extend the pension benefit under PM Karam Yogi Maan Dhan Scheme to 3 Crore retail traders. It only requires the person’s Aadhaar number and bank account details. Also, Rs.1 Crore value of the loans proposed to MSMEs. The government has permitted the investment of debt securities in infrastructure debt funds by FIIs and FDIs. Minimum public shareholding can be increased from 25% to 35% in listed companies. International Investors Meet to take place in India. To launch a TV channel to support startups and aid fund-making. New national education policy aims to turn Indian education into one of the best in the country while concentrating on attracting students from outside. Also, Rs.50 lakh crores for Railway infrastructure. By 2022, the 75th year of Independence, every rural family will have electricity and clean cooking facilities except those who do not want to connect. Zero-budget farming, which is a form of self-sustaining gardening and has minimal external interference. When should I register for GST? The duration period of 30 days can be utilized to apply for the registration of GST since the date of liability for the same. Also, understand more about the procedure for GST registration and GST returns. What benefits do the state and central government give MSMEs? The subsidies that state and central governments provide to the Micro, Small and Medium Enterprises include sales tax exemption and subsidies on power and much more. Also, learn more about Udyog Aadhar Registration. What is the purpose of Tax Back Offer? Tax back offer is an attractive incentive to influence taxpayers to file their ITR forms early. Beware of free agents when filing ITR forms. More on Income Tax Return Filing What documents do we need for ISO 9001 2015? You require documents such as quality objectives, quality policy, QMS scope for ISO compliant. However, certain documents are not mandatory. Get to learn more about ISO Certification. Whether an NGO can give loans to another NGO under the provisions of the Income-tax Act, 1961? There is a provision in the Income Tax Act 1961 which gives permission to an NGO to provide loans to a similar NGO for fulfilling its prime objectives. Get to know more info on NGO Registration in India.