Key Highlights of Union Budget 2019-20

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  • PAN and Aadhaar will become interchangeable. Aadhaar can be used wherever PAN is required.
  • Additional deduction up to Rs. 1.5 lakhs(total 3.5 lakh) for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh.
  • STT restricted only to the difference between settlement and strike price in case of exercise of options.
  • Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.
  • Surcharge enhanced on individuals with Rs. 2-5 crore income by 3 per cent, Rs. 5 crore and above by 7 per cent.
  • Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore
  • Customs duty exempted on certain parts of electric vehicles.
  • TDS of 2% on cash withdrawal exceeding ₹1 crore in a year from a bank account to promote less cash economy.
  • No charges or MDR on specified digital mode of payments. These modes are to be compulsorily provided by large businesses.
  • Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Rs. 1 per litre on petrol and diesel
  • Custom duty on gold and other precious metals increased from 10% to 12.5%
  • Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera etc.
  • 5% Basic Custom Duty imposed on imported books.
  • Customs duty reduced on certain raw materials such as:
  • Inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants etc.
  • Capital goods required for manufacture of specified electronic goods.
  • Reform measures to be taken up to promote rental housing. Model Tenancy Law to be finalized and circulated to the states
  • Insurance Intermediaries to get 100% FDI.
  • SEBI to consider raising the threshold for minimum public shareholding in the listed companies from 25% to 35%.
  • Know Your Customer (KYC) norms for Foreign Portfolio Investors to be made more investor friendly.
  • Government to supplement efforts by RBI to get retail investors to invest in government treasury bills and securities, with further institutional development using stock exchanges.
  • Legacy Dispute Resolution Scheme for quick closure of pending litigations in Central Excise and Service tax from pre-GST regime
  • GST Taxpayers having annual turnover of less than ₹5 crore can now file quarterly returns.
  • An electronic invoice system is proposed that will eventually eliminate the need for a separate e-way bill.
  • E-verification for establishing investor identity and source of funds to resolve tax issues relating to fund raising
  • Rs 70,000 crores for bank recapitalization. 
  • Rationalising of labour laws into 4 labour codes proposed.
  • National Research Foundation to be established to fund, coordinate and promote R&D.
  • New Space India Limited (NSIL), a PSE, incorporated as a new commercial arm of Department of Space. To tap the benefits of the Research & Development carried out by ISRO like commercialization of products like launch vehicles, transfer to technologies and marketing of space products


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