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Budget 2018-19 Key Points

Below are the key highlights of Yesterdays Budget presented by Finance Minister Arun Jaitley:

  • Preparations for GST rollout on schedule
  • Govt to launch awareness outreach on GST on April 1
  • Tax liability for incomes below Rs 3.5 lakh may go
  • Income tax on incomes up to Rs 5 lakh cut to 5%
  • Reduce existing rate for individuals earning between Rs. 2.5 Lakh & 5 Lakh: to 5% instead of 10%
  • Surcharge of 10% on those with income of Rs 50L to Rs 1 cr
  • 15% surcharge on incomes above Rs 1 cr to continue
  • Basic customs duty on LNG to be reduced from 5% to 2.5%
  • All political parties will have to file returns under Income Tax Act
  • amendment proposed to RBI Act to enable the issuance of electoral bonds
  • Govt plans electoral bonds to cleanse political funding
  • Political Funding reduced to Rs 2000 per head
  • Political Parties to receive donation through cheques/ digital modes above Rs 2k
  • Transparency in political funding
  • No cash transactions above Rs 3 lakhs
  • Cash Transactions Capped
  • Propose to allow carry forward of MAT to 15 years from 10 years now
  • 5% tax cut on MSMEs with turnover of Rs 50 cr
  • Sops to affordable housing extended from 3 years to 5 years
  • Political Funding reduced to Rs 2000 per head
  • Political Parties to receive donation through cheques/ digital modes above Rs 2k
  • Transparency in political funding
  • No cash transactions above Rs 3 lakhs
  • Cash Transactions Capped
  • Propose to allow carry forward of MAT to 15 years from 10 years now
  • 5% tax cut on MSMEs with turnover of Rs 50 cr
  • Sops to affordable housing extended from 3 years to 5 years
  • 96% per cent of India’s companies will get the benefit
  • Will make MSMEs more competitive as compared to larger companies
  • To make MSME companies more viable, proposes to reduce IT by 5 % for small companies with annual turnover 50 cr
  • They end up paying more taxes due to lack of sops
  • Medium and small enterprises provide maximum employement
  • Relaxation of tax norms for unoccupied houses
  • Changes in capital gain on sale of property
  • Will Make tax collection effective
  • 34% increase in tax declaration
  • Committed to make taxation rates affordable
  • Net tax revenues to grow by 17% this fiscal year.
  • Direct tax collection not commensurate with the size of the economy
  • During demonetisation, deposits of more than 80 lakhs rupees was made, this data mining will help us in expanding tax net
  • 5.6 crore informal sector enterprises registered in India, less than 2 crore filed returns
  • We are largely a tax non-compliant society, when too many ppl evade taxes, the burden is passed to honest tax payers: FM
  • 1.25 lakh cars have been sold in last 5 years
  • No. of Indians travelling abroad for business and tourism was 2 crores last year
  • Out of 13.94 lakh companies registered only 5.9 have filed for income tax assessment
  • TAX proposals 3.7 crore - filled tax returns 99 lakhs showed income below exemption Only 24 lakhs showed income above 10L
  • Only about half employed in organised sector file their Income Tax returns
  • Poor tax return filing compliance metrics for India, says FM.
  • 1.74 cr salaried income tax payers:
  • India's tax to GDP ratio is low. Direct tax to indirect tax is also not optima
  • FY 18 expenditure Rs 21, 47,000 cr
  • Capex hiked by 25.4%
  • Fiscal deficit target – 3.2% in 2017-18, 3% in FY 19
  • Need for higher public expenditure in the context of sluggish private sector investment
  • Stepped up allocation of capital expenditure
  • New law for economic offenders
  • Confiscation of assets of those who flee the country to avoid proceedings will be considered
  • Legislative changes to confiscate assets of economic offenders who are fleeing the country
  • Propose to double the lending target of Pradhan Mantri Mudra Yojana and set it up at Rs 2.44 lakh crore for 2017-18:
  • Passports can be availed through head post offices
  • Decided to utilise the Head post office as front office for passport services in villages
  • Centralised defence system for soldiers for railway bookings introduced
  • Centralised defence travel system in place for soldiers to book tickets without hassles
  • Road sector budget increased from 57,676 cr rupees in 2016-17 to 64,900 crore rupees in 2017-18
  • Govenment 2 encourage SIDBI to provide loans at reasonable rate
  • Amendment of Negotiable instrument Act on anvil
  • Cash back scheme and held for merchants
  • Time bound listing of PSUs
  • 20L Aadhaar POS
  • financial inclusion and JAM important precursors to current push for digital payments
  • Strengthen Financial Inclusion Fund
  • Digital Payment system to be strengthened
  • Aadhaar Pay to be launched shorty to enable digital payment
  • India on cusp of digital transformation
  • 2 New Schemes to promote Bhim App
  • Stand up India scheme to be strengthened
  • Sops for SC/ STs, Minorities
  • Financial Firms Regulations Bill to be introduced in Parliament
  • Bill to protect poor from dubious schemes
  • The Foreign Investment Promotion Board has been abolished: FM Jaitley
  • Infra allocation @ 3,96,135 crore
  • Expert committee to study integration of commodity market
  • Further liberalisation of FDI policy
  • New FDI policy under consideration
  • Transport sector allocated Rs 2.41 Lakh Crore and Bharat Net Project allocated Rs 10,000 crore
  • Action plan to eliminate Kala Azar & Filariasis by 2017, Leprosy by 2018, Measles by 2020 & Tuberculosis by 2025: FM
  • 64000 Cr allocated for national highways
  • Aim to make 50,000 Gram Panchayat poverty free
  • National Agriculture Market to be expanded to 585 Markets
  • A new metro rail policy will be announced, this will open up new jobs for our youth
  • Service tax on IRCTC booking will be withdrawn
  • Railway budget allocation at Rs 55,000 crore;
  • 1.31 lac crores for development & Capex for railways
  • To comission 3,500 km railway track in 2017-2018
  • No service charge on E rail tickets
  • Steps will be taken to launch dedicated trains for pilgrimage and tourism
  • 5 Special Tourism Zones To Be Set Up In Partnership With States
  • PM Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad
  • 7000 Railway stations to be powered by solar
  • Coach Mitra Facility for Railways in 2017-18
  • by 2019 all coaches will have bio-toilets
  • Rail safety fund with corpus of Rs 100,000 crore will be created over a period of 5 years
  • 500 railway stations to be made disabled-friendly,
  • Unmanned level crossings to be eliminated,experts to be brought in for enhancing rail safety,dedicated trains for tourism & pilgrimage
  • Four areas of priority for Railways: Passenger Safety, Capital Works, Cleanliness & Financial
  • aadhar based smart cards containing helath details to be introduced for senior citizens
  • For senior citizens, Aadhar based smart cards with health cards to be introduced. LIC to implement new scheme for them
  • Aadhaar based health cards for SeniorCitizens, 8% assured income from LIC
  • Amendment to Wage Act
  • Reforms to simplify labour laws
  • Skill Acquisition & Knowledge Awareness program called SANKALP to provide market training to youth
  • 5 special tourism zones will be set up
  • 2 AIIMS centres to be set up in Jharkhand and Gujarat
  • 5000 PG sets in medicine
  • 1.5 lakh health care centres to be upgraded
  • Rural sanitation allocation increased
  • Additional 25000 PG courses in medicine
  • Special scheme like textile to be launched for leather sector too
  • Creating employment in the leather sector
  • More skill development centres to be set up
  • Mahila Shakti Kendras to be set up
  • Total allocation in rural, agriculture, allied sectors will get a record allocation which will be 27% higher
  • Safe drinking water key priority; panchayat raj institutions still lack basic facilities; progm to be launched for this purpose
  • PM Awaz Yojana to get 23,000 crore
  • FM Arun Jaitley announces the highest ever allocation for MNREGA, at Rs 48,000 crore. quality education will enrgise our youth
  • Emphasis on quality education in schools
  • National testing agency for entrance examinations
  • Innovation funds for  secondary education
  • Our agenda for 2017-18 is transform, energise and clean India, i.e tech India.
  • Govt will set up mini-labs to cater to the needs of farmers. Additional 100 mini-labs will be set up by entrepreneurs
  • We are on our way to achieve 100% rural electrification by May 2018:
  • Over Rs 4,8oo cr for rural electrificantion in 2017-18
  • Participation of women in MNREGA has increased to 55% from 48% in the past,
  • PMAY Garmin allocation increased to Rs 23k cr from Rs 15k cr. To build 1 cr additional pukka houses in rural areas by 2019.
  • Rs 5,000cr Micro Irrigation Fund to be set up by NABARD.
  • Merger of Rail Budget with Union Budget is a historic step.
  • Aim to make 1 crore households poverty free; use existing resources more effectively with micro plan for sustainable livelihood
  • To spend Rs13,240 cr on crop insurance, modern law on contract farming will be prepared and circulated among states for adoption:
  • Massive war against black money has been launched
  • Dairy processing fund to be set up
  • Milk processing industry under milk flood mission in defunct Propose to give nabard responsibility at 2K crore
  • Dairy Processing & Infrastructure Development Fund will be setup in NABARD with a corpus 8000 cr over 3 yrs with initial 2k cr
  • Modern law for integrated farming will be created
  • Rs 20000 cr for irrigation,
  • Plan to take 1 crore households from poverty
  • Tenure of loans extended under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana from 15 to 20 year
  • We are aware we need to do more for our people, our agenda is transform,energise & clean India, that is 'tech India'
  • Demonetization is a  bold and decisive measure, for many decades tax evasion was a way of life for many
  • Committed to double farmers income in 5 years, digital economy to enable transparency:
  • Merging Railway Budget with the General Budget does away with a colonial practice
  • My overall approach is to spend more in rural areas for infra yet adhere to fiscal prudence
  • Long term benefits, increased flow of financial savings - all of which will lead to higher GDP
  • Gov target to double the income of farmers in next five years.
  • 10L crores ($150 billion) for farmers
  • Agriculture to grow at 4.1% in current year
  • Budget to ensure adequate flow of credit to underserved areas
  • Digital Economy for speedy delivery and accountability one of the ten focus areas of Union Budget
  • Target of agricultural credit to be at Rs 10 trillion in 2017-18
  • Market reforms to be undertaken
  • Global uncertainty hitting emerging economies
  • Inflation has been controlled
  • Growth has been recovering steadily
  • India an engine of global growth
  • IMF,World Bank has praised India
  • Demonetization is an institutional reform
  • Govt is focused on creating more jobs
  • India’s fiscal deficit has reduced
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Wednesday, 26 June 2019

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