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Mark To Market “Budget 2019”

























Fiscal

• Concrete plans for enabling the ambitious 5- years infrastructure program with an investment volume of INR100 lakh crores
• The nominal GDP growth of 12%. Indications are that the inflation rate would remain below 4%
• Achieving the fiscal deficit target of 3.3% of GDP for 2019–20

Corporate Taxation

• Domestic companies to be taxed at 25% if the turnover/gross receipt is upto INR 400 crores as against earlier threshold of INR 250 crores
• TDS rate of 2% to be applicable on aggregate cash withdrawals exceeding INR 1 crores from bank accounts in a financial year
• Buyback tax to be applied on buyback by listed companies post 5 July 2019
• SEBI to mull increase in minimum public shareholding for listed entities from 25% to 35%
• TDS of 5% In the case of INDL or HUF (not audited) for payment of Contractual or Professional fees in a year exceeding 50 lakh rupees

Individual Taxation

• PAN and Aadhaar will be made interchangeable, and taxpayers without PAN can file the tax returns quoting Aadhaar
• An enhanced surcharge of 25% is leviable on taxable income exceeding INR 2 crore till INR5 crore and 37% on taxable income exceeding INR 5 crore
• An additional income tax deduction up to INR1.5 lakh will be provided for the purchase of the first residential property. Additional income tax deduction of up to INR1.5 lakh will be available for loans taken by individuals from any financial institution for the purchase of electric vehicles

Financial Services

• The statutory limit for foreign portfolio investment in a company to be increased from 24% to sectoral foreign investment limit
• 100% FDI to be permitted for insurance intermediaries
• Reduction in net owned fund requirement from INR5,000 crore to INR1,000 crore for units of a foreign reinsurance company in IFSC
• Public sector banks to be further provided INR70,000 crore capital to boost credit for a strong impetus to the economy

Oil and Gas

• Effective increase of special additional excise duty and road and infrastructure cess by INR1 for every liter of petrol and diesel with effect from 6 July 2019
• Basic customs duty to be payable on 7.5% of the transaction value for specified goods (imported duty-free for petroleum or coal -bed methane operations) disposed of in India in unserviceable and mutilated conditions

Retail Sector

• Pension benefit to be extended to ~30 million retail traders and small shopkeepers with annual turnover less than INR15 million
• MSMEs to have easy access to credit for loans up to INR10 million by providing loans through a dedicated online portal within 59 minutes

Start-Up

• Alternate composition scheme introduced for the supplier of services and mixed suppliers with an annual turnover up to INR50 lakhs.

Infrastructure

• The Government plans to invest INR100 lakh crore in the infrastructure sector over the next five years
• There are plans to make India a hub for aircraft financing and leasing activities utilizing existing International Financial Service Centres and SEZs.
• Around 1,25,000km of road length will be upgraded over the next five years, with an estimated cost of INR80,250 crore.
• FPIs will be permitted to subscribe to listed debt securities issued by REITs and InvITs.

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