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Union Budget 2019- Gold, Petrol price raised, reduces tax burden of the middle class

Finance Minister Nirmala Sitharaman before beginning the Budget session

New Delhi, July 06 (UITV): Ranjit Barthakur, Chairman, FICCI North East Advisory Council appreciated, “The budget has taken forward the plan that was set in direction in the interim budget.”

The budget continued its focus on infrastructure development. The vision ‘One Nation One Grid’ for electricity and a similar plan for gas grids, water grids, i-ways and regional airports is indeed ambitious and would make a difference in its influence.

Government to uplift PPP in metro rail projects. In the procedure of concluding dedicated rail freight corridor

The commitment to lower corporate tax to 25% for companies with turnover up to Rs 400 crore is also welcoming.

The Budget presented by Finance Minister Nirmala Sitaraman will invigorate economic growth as it stresses on the development of infrastructure and advises multiple gains on MSMEs, according to G. Sambasiva Rao, the president of the AP Chambers of Commerce and Industry Federation. Pension to traders with income under Rs 1.5 cr. suggests pension scheme for small traders.

Welcoming the Budget, he said the project to develop railway infrastructure through the public-private partnership model was wise, as Rs 50 lakh crore of investment would be required over the years for the purpose. Bharatmala, with an investment of Rs 80,250 crore to build 1,25,000 km of village roads was also a good enterprise. The development and maintenance of transport infrastructure to reduce congestion and improve access to rural markets would have a positive ripple effect on the agricultural sector.

The credit boost to MSMEs through a Rs 350-crore interest subvention and 2 per cent interest subvention for GST-registered MSME on fresh or incremental loans would help businesses and boost the waning economy, he added. Also, introduction of Rs 1 crore loan for MSMEs would be a great relief to small businesses, making easier accessibility and processing of loans through a single portal.

The increase in turnover limit to Rs 400 crore for companies to avail themselves of the 25 per cent tax slab would lead to more capital in the hands of businesses to invest in growth, he added.

A large number of items including petrol, diesel, gold, silver, cigarettes, fully-imported cars and split air conditioners (ACs) will become more expensive due to hike in taxes, as proposed by Finance Minister Nirmala Sitharaman in the Union Budget for 2019-20. Increase of customs duty on gold and precious metals from 10% to 12.5%

At the same time certain items such as electric vehicle constituent, camera module and charger of mobile phones and set-top boxes will become cheaper.

Finance Minister Nirmala Sitharaman said PAN and Aadhaar have been made indistinguishable, enabling those who do not have PAN to file income tax returns.

reading out the first budget of the Modi government in its second term, Sitharaman said Aadhaar card for NRIs with Indian passports will be provided after their arrival in India, without waiting for the compulsory 180 days.

Petrol and diesel in the country will be dearer by ₹2 a litre after Finance Minister Nirmala Sitharaman increased the Special Excise duty and Road and Infrastructure cess levied on auto fuels by ₹ 1 each.

Supplementry deduction of Rs 1.5 lakh for interest paid on loans upto March 31, 2019 for purchase of affordable house of Rs 45 lakh or below

Up to Rs 45 lakh, will get an increased interest deduction up to Rs 3.5 lakh. Another deduction of Rs. 1.50 lakh on interest paid for house purchase from Rs. 2 lakh. Total benefit Rs. 3.5 lakh. FM says net gain would be Rs. 7 lakh

Period of Exception for capital gains arising from sale of house for investment in startups to be stretched to March 31, 2021.

Direct tax revenues boosted by 78% to 11.37 lakh crore in FY19. It is growing at double digit every year. Only when taxable income ovrreaches ₹5lakh will people pay income tax. Facilitating tax administration and ensure greater transparency . The government raised the income tax surcharge of 3 % for high net worth individuals (HNIs) with annual income between Rs 2 crore to Rs 5 crore a year. The income tax on incomes of Rs 5 crore and above will also be increased by 7%.

FM will continue with pointed deduction of corporate tax rates, include all cos with annual income of up to Rs 400 crore in 25% tax, will cover 99.3% of all companies.
Tax proposals will motivate growth, boost economical housing and encourage start ups and digital economy.