Ahead of finance minister Nirmala Sitharaman’s second budget speech on 1 February, here’s a look back at the major announcements she made during her maiden budget speech last year (Union Budget 2019), which created quite a stir in the equity markets later:
- No changes were made in the income-tax slabs. However, surcharge was increased for those earning Rs 2-5 crore and above Rs 5 crore per annum. The effective tax rate for these categories was increased by around 3% and 7%, respectively.
- Corporate tax rate was reduced to 25% for companies with annual turnover up to Rs 400 crore.
- It was proposed that Sebi should consider raising the threshold for minimum public shareholding in listed companies from 25% to 35%.
- Interchangeability of PAN and Aadhaar was allowed. This meant that Aadhaar could be used wherever PAN is required. For instance, those who didn’t have PAN could file tax returns using Aadhaar.
- To boost the affordable housing sector, additional deduction of up to Rs 1.5 lakh was introduced for interest paid on loans borrowed up to 31 March 2020 for purchase of houses valued up to Rs 45 lakh.
- Additional income tax deduction of Rs 1.5 lakh was introduced on interest paid on loans to buy electric vehicles.
- Rs 70,000 crore were proposed to be provided for recapitalization of public sector banks.
- For purchase of high-rated pooled assets of financially sound NBFCs (non-banking finance companies) amounting to Rs 1 lakh crore during 2019-20, government said it would provide one-time six-month partial credit guarantee to public sector banks (PSBs).
- The shift in regulatory authority for the housing finance sector was proposed from the National Housing Board (NHB) to the Reserve Bank of India (RBI).
- A target of Rs 1.05 lakh crore of disinvestment receipts was set for the 2019-20.
- A TDS (tax deducted at source) of 2% was proposed to be levied on cash withdrawal exceeding Rs 1 crore from a bank account in a year.
- Charges or merchant discount rate (MDR) on specified digital mode of payments were scrapped. These modes were to be compulsorily provided by large businesses.
-- Import duty was hiked on gold and precious metals to 12.5% from 10%.
-- Special additional excise duty and road and infrastructure cess were raised by Re 1 per litre each on petrol and diesel.
-- The government said it will bring out a policy framework for making India a global hub of aircraft financing and leasing activities.
-- Pension benefit was extended to around 3 crore retail traders and shopkeepers with an annual turnover of less than Rs 1.5 crore under the Pradhan Mantri Karam Yogi Man Dhan Scheme.
-- To resolve the issue of Angel Tax, it was proposed that start-ups and investors who file requisite declarations would not be subjected to any kind of scrutiny in respect of valuation of share premium.
Comments
0 comment