On July 05, 2019, Indian Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, announced the Union Budget 2019-20 in the Parliament. According to the new budget, new India is all ready to be the $3 trillion economies by the end of the financial year 2020.
According to the latest Hindi Samachar, the new budget proposal emphasizes on reducing red tape, building social infrastructure, making the best use of technology, make in India, Digital India, job opportunities in Micro, Small and Medium Enterprises (MSMEs), etc. Here are some of the major highlights of Union Budget 2019-20 in certain sectors:
I. Support for Farmers
In a Hindi news app, it was mentioned that the government of India will work with different State Governments to enable farmers to take advantage of e-NAM (National Agriculture Market).
The government may even imply “one count: Zero Budget Farming” methodology in India to increase farmers’ income.
The Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be implied to address all critical gaps present in the value chain, including modernization, infrastructure, production, traceability, productivity, quality control, and post-harvest management.
Indian Railways has been provided INR 94,071 crore in 2019-20 for development.
The government will also invest INR 5,000,000 crore for railways infrastructure.
For upgrading road length of 125,000 km over the next 5 years, INR 80,250 crore will be envisaged as per Pradhan Mantri Gram Sadak Yojana-III (PMGSY)
Government of India has also ensured power availability to different states at reasonable prices through a popular model called “One Nation, One Grid,” according to one of the best news apps in Hindi.
III. Micro, Small and Medium Enterprises (MSMEs) and Traders
The government will grant up to INR 1 crore for MSMEs establishment within 59 minutes via an online portal. Under the new Interest Subvention Scheme of MSMEs, INR 350 crore is already allocated for the financial year 2019-20.
The government will create a proper payment stage for new MSMEs and enable them to fill payment bills on the given platform.
The Government e-Marketplace (GeM) also has been extended to the Central Public Sector Enterprises (CPSEs) for offering greater leverage for MSMEs for running their business.
IV. Tax Proposals
Individual taxpayers with INR 500,000 annual income will get complete tax rebate and won’t be liable to any tax.
2% Tax Deducted at Source (TDS) will be levied on cash withdrawal of more than INR 1 crore in a year to promote the less-cash economy.
Individuals who have taxable income above INR 2 crore to INR 400 crore will be levied extra effective tax rate.
The interest deduction also has been enhanced up to INR 350,000 on a purchase of affordable housing.
The government also announced INR 150,000 income tax deduction on the interest paid on loans for buying electric vehicles.
The Sabka Vishwas Legacy Dispute Resolution Scheme has also proposed the closure for excise related litigations and service taxes.