Budget Highlights 2019-20

Income-tax

1.    The threshold limit for reduced tax rate of 25% in case of domestic companies has been increased from Rs. 250 crores to Rs. 400 crores. Thus, a domestic company whose total turnover or the gross receipt in the previous year 2017-2018 does not exceed Rs. 400 crore shall be taxable at the rate of 25%.

2.    A new Section 80EEA has been inserted to provide for deduction of up to Rs. 1.50 lakhs for interest on loan taken from any financial institution for acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs.

3.    A new section 80EEB has been inserted to provide for a deduction of Rs. 1.5 lakhs in respect of interest on loan taken for purchase of an electric vehicle from any financial institution.

4.    The new rate of surcharge for Individual, HUF, AOP, BOI and AJP shall be – 10% (for income of Rs. 50 lakhs to Rs. 1 crore), 15% (for income of Rs. 1 crore to Rs. 2 crores), 25% (for income of Rs. 2 crores to Rs. 5 crores) and 37% (for income exceeding 5 crores).

5.    Any sum of money paid, or any property situated in India transferred, on or after July 5, 2019 by a person resident in India to a person outside India shall be deemed to accrue or arise in India under Section 9.

6.    Furnishing of return of income shall be mandatory under Section 139 if an individual has deposited Rs. 1 crore or more in current account or he has incurred expenditure of Rs. 2 lakhs or more on foreign travel or he has incurred expenditure of Rs. 1 lakh or more on electricity consumption.

7.    Income-tax return can be filed using Aadhaar Number, if person hasn’t been allotted PAN. If a person has linked his Aadhaar number with PAN, he may also furnish his Aadhaar number in place of PAN in the Income-tax return.

8.    PAN allotted to a person shall be deemed to be invalid, if he failed to intimate the Aadhaar to the Dept.

9.    A new Section 194N has been inserted to require deduction of tax at source at the rate of 2% if aggregate of cash withdrawn during the financial year from any account maintained with a banking company or cooperative bank or post office exceeds Rs. 1 crore.

10.  The sunset date for transfer of residential house property, for claiming exemption under Section 54GB in respect of investment made in eligible start-ups, has been extended from 31st March, 2019 to 31st March, 2021. Further, the conditions of minimum shareholding or voting rights has been relaxed from 50% to 25%.

11.  Application under Section 195(2) and 195(7) for lower or nil deduction of tax from sum paid or payable to non-residents person can be filed electronically.

12.  A new Section 194M has been inserted to require any individual or HUF (who is not required to deduct tax under Section 194C or 194J) to deduct tax at source from sum paid to a contractor or professional if aggregate payment during the year exceeds Rs. 50 lakh. The tax can be deposited under this provision without any requirement to obtain TAN.

13.  As per Section 194-IA, a buyer is required to deduct tax at source from the consideration paid to buy an immovable property. An explanation has been inserted that ‘consideration for immovable property’ shall include all charges paid towards club membership fee, car parking fee, electricity and water facility fees, maintenance fee, or any other charges of similar nature, which are incidental to transfer of the immovable property.

14.  In case of failure to file an Income-tax return, the prosecution proceedings are initiated under Section 276CC if the tax payable by the assessee is Rs. 3,000 or more. This threshold limit has been increased to Rs. 10,000.

15.  Constituent entity of an International group shall now be required to keep and maintain information and document under Section 92D and file required form even when there is no international transaction is undertaken by such constituent entity.

16.  There are various provisions in the Act which requires a person to make payment by account payee cheque/draft or ECS. In order to encourage other electronic modes of payment, the Government has proposed to amend relevant provisions to include other electronic modes of payment.

17.  Tax shall be deductible under Section 194DA at the rate of 5% only on the income component of life insurance pay-out. The existing rate of TDS was 1% on the gross amount.

18.  Relief under Section 89 shall be considered while computing the tax liability under Section 140A, section 143, section 234A, section 234B, and section 234C to avoid genuine hardships to the taxpayers who are claiming such relief.

19.  Every person, carrying on business, shall, provide facility for accepting payment through electronic modes if his turnover or gross receipts exceeds Rs. 50 crores. The Payment and Settlement Systems Act, 2007 is proposed to be amended to provide that no bank or system provider shall impose any charge upon anyone, either directly or indirectly, for using the electronic modes of payment.

20.  A taxpayer has been allowed to withdraw 60% of total amount from NPS as tax free. Currently, the exemption is allowed only up to 40% of the total corpus amount.

21.  Benefit of first proviso of Section 201(1) has been extended in case of failure to deduct tax at source from sum paid to non-residents. Thus, a deductor shall not be deemed to be an assessee in default even if he fails to deduct tax from sum paid to a non-resident, if such non-resident discloses such income in his return of income and pays tax due on such income and a certificate from a Chartered Accountant is furnished to this effect.

22.  Deduction of up to 10% of salary is allowed under Section 80CCD in respect of contribution made by an employer to NPS. The limit has been proposed to be increased to 14% of salary in case of Central Government’s employees.

23.  Section 12AA has been amended to provide that at the time of granting of registration to a trust or institution the Pr. CIT or CIT shall also satisfy himself that the applicant trust or institution also satisfy the requirements of any other law which is material for the purpose of achieving its objects.

24.  The Pr. CIT or CIT has been empowered to cancel the registration under Section 12AA, if after granting registration it has been noticed that the trust or institution has violated requirements of any other law which was material for the purpose of achieving its objects.

25.  Section 115QA which requires payment tax on distributed income in case of buy-back of shares has proposed to be extended to listed companies as well.

26.  ITR filing is mandatory, if total income of assessee before claiming the benefit of capital gain exemption under sections 54, 54B, 54EC, 54F, 54G, 54GA and 54GB, doesn’t exceeds the maximum amount not chargeable to tax.

UNION BUDGET 2019-20 (Income tax & GST)


INDIVIDUALS

• Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.
• Achieving green Mother Earth and Blue Skies through a pollution-free India.
• Making Digital India reach every sector of the economy.
• Launching Gaganyan, Chandrayan, other Space and Satellite programmes.
• Building physical and social infrastructure.
• Water, water management, clean rivers.
• Blue Economy.
• Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.
• Achieving a healthy society via Ayushman Bharat, well-nourished women & children, safety of citizens.
• Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.

• “People’s hearts filled with Aasha (Hope), Vishwas (Trust), Aakansha (Aspirations)”, says FM.
• Indian economy to become a 3 trillion dollar economy in the current year.
• Government aspires to make India a 5 trillion dollar economy.
• Need for investment in:
  • Infrastructure
  • Digital economy.
  • Job creation in small and medium firms.
• Initiatives to be proposed for kick-starting the virtuous cycle of investments.
• Common man‟s life changed through MUDRA loans for ease of doing business.
• Measures related to MSMEs:
  • Pradhan Mantri Karam Yogi Maandhan Scheme
    • Pension benefits to about three crore retail traders & small shopkeepers with annual turnover less than Rs. 1.5 crore.
    • Enrolment to be kept simple, requiring only Aadhaar, bank account and a self-
  • Rs. 350 crore allocated for FY 2019-20 for 2% interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs.
  • Payment platform for MSMEs to be created to enable filing of bills and payment thereof, to eliminate delays in government payments.
• India’s first indigenously developed payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards, launched in March 2019.
• Inter-operable transport card runs on RuPay card and would allow the holders to pay for bus travel, toll taxes, parking charges, retail shopping.
• Massive push given to all forms of physical connectivity through:
  • Pradhan Mantri Gram Sadak Yojana.
  • Industrial Corridors, Dedicated Freight Corridors.
  • Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN
• State road networks to be developed in second phase of Bharatmala
• Navigational capacity of Ganga to be enhanced via multi modal terminals at Sahibganj and Haldia and a navigational lock at Farakka by 2019-20, under Jal Marg Vikas Project.
• Four times increase in next four years estimated in the cargo volume on Ganga, leading to cheaper freight and passenger movement and reducing the import bill.
• Rs. 50 lakh crore investment needed in Railway Infrastructure during 2018-2030.
• Public-Private-Partnership proposed for development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.
• 657 kilometers of Metro Rail network has become operational across the country.
• Policy interventions to be made for the development of Maintenance, Repair and Overhaul (MRO), to achieve self- reliance in aviation segment.
• Regulatory roadmap for making India a hub for aircraft financing and leasing activities from Indian shores, to be laid by the Government.
• Outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME
• Upfront incentive proposed on purchase and charging infrastructure, to encourage faster adoption of Electric Vehicles.
• Only advanced-battery-operated and registered e-vehicles to be incentivized under FAME Scheme.
• National Highway Programme to be restructured to ensure a National Highway Grid, using a financeable model.
• Power at affordable rates to states ensured under “One Nation, One Grid‟.
• Blueprints to be made available for gas grids, water grids, i-ways, and regional airports.
• High Level Empowered Committee (HLEC) recommendations to be implemented:
  • Retirement of old & inefficient plants.
  • Addressing low utilization of gas plant capacity due to paucity of Natural Gas.
• Cross subsidy surcharges, undesirable duties on open access sales or captive generation for industrial and other bulk power consumers to be removed under Ujjwal DISCOM Assurance Yojana (UDAY).
• Package of power sector tariff and structural reforms to be announced soon.
• Reform measures to be taken up to promote rental housing.
• Model Tenancy Law to be finalized and circulated to the states.
• Joint development and concession mechanisms to be used for public infrastructure and affordable housing on land parcels held by the Central Government and CPSEs.
• Measures to enhance the sources of capital for infrastructure financing:
  • Credit Guarantee Enhancement Corporation to be set up in 2019-2020.
  • Action plan to be put in place to deepen the market for long term bonds with focus on infrastructure.
  • Proposed transfer/sale of investments by FIIs/FPIs (in debt securities issued by IDF­NBFCs) to any domestic investor within the specified lock-in period.
• Measures to deepen bond markets:
  • Stock exchanges to be enabled to allow AA rated bonds as collaterals.
  • User-friendliness of trading platforms for corporate bonds to be reviewed.
• Social stock exchange:
  • Electronic fund raising platform under the regulatory ambit of SEBI.
  • Listing social enterprises and voluntary organizations.
  • To raise capital as equity, debt or as units like a mutual fund.
• 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.
• Measures to make India a more attractive FDI destination:
  • FDI in sectors like aviation, media (animation, AVGC) and insurance sectors can be opened further after multi-stakeholder examination.
  • Insurance Intermediaries to get 100% FDI.
  • Local sourcing norms to be eased for FDI in Single Brand Retail sector.
• Government to organize an annual Global Investors Meet in India, using National Infrastructure Investment Fund (NIIF) as an anchor to get all three sets of global players (pension, insurance and sovereign wealth funds).
• Statutory limit for FPI investment in a company is proposed to be increased from 24% to sectoral foreign investment limit. Option to be given to the concerned corporate to limit it to a lower threshold.
• FPIs to be permitted to subscribe to listed debt securities issued by ReITs and InvITs.
• NRI-Portfolio Investment Scheme Route is proposed to be merged with the Foreign Portfolio Investment Route.
• Cumulative resources garnered through new financial instruments like Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) as well as models like Toll-Operate-Transfer (ToT) exceed Rs. 24,000 crore.
• 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.

• Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore
• Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above.
• India’s Ease of Doing Business ranking under the category of “paying taxes“ jumped from 172 in 2017 to 121 in the 2019.
• Direct tax revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore

• Interchangeability of PAN and Aadhaar
  • Those who don‘t have PAN can file tax returns using Aadhaar.
  • Aadhaar can be used wherever PAN is required.
• Pre-filling of Income-tax Returns for faster, more accurate tax returns
  • Pre-filled tax returns with details of several incomes and deductions to be made
  • Information to be collected from Banks, Stock exchanges, mutual funds etc.
• Faceless e-assessment
  • Faceless e-assessment with no human interface to be launched.
  • To be carried out initially in cases requiring verification of certain specified transactions or discrepancies.

• Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh.
  • Overall benefit of around Rs. 7 lakh over loan period of 15 years.

• Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.
• Customs duty exempted on certain parts of electric vehicles.

• Simplification of tax laws to reduce genuine hardships of taxpayers:
  • Higher tax threshold for launching prosecution for non-filing of returns
  • Appropriate class of persons exempted from the anti-abuse provisions of Section 50CA and Section 56 of the Income Tax Act.

• Capital gains exemptions from sale of residential house for investment in start-ups extended till FY21.
• ‘Angel tax’ issue resolved- start-ups and investors filing requisite declarations and providing information in their returns not to be subjected to any kind of scrutiny in respect of valuations of share premiums.
• Funds raised by start-ups to not require scrutiny from Income Tax Department
  • E-verification mechanism for establishing identity of the investor and source of funds.
• Special administrative arrangements for pending assessments and grievance redressal
  • No inquiry in such cases by the Assessing Officer without obtaining approval of the supervisory officer.
• No scrutiny of valuation of shares issued to Category-II Alternative Investment Funds.
• Relaxation of conditions for carry forward and set off of losses.

• Interest on certain bad or doubtful debts by deposit taking as well as systemically important non-deposit taking NBFCs to be taxed in the year in which interest is actually received.

• Direct tax incentives proposed for an IFSC:
  • 100 % profit-linked deduction in any ten-year block within a fifteen-year period.
  • Exemption from dividend distribution tax from current and accumulated income to companies and mutual funds.
  • Exemptions on capital gain to Category-III Alternative Investment Funds (AIFs).
  • Exemption to interest payment on loan taken from non-residents.

• STT restricted only to the difference between settlement and strike price in case of exercise of options.

• Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera etc.
• Exemptions from Custom Duty on certain electronic items now manufactured in India
• End use based exemptions on palm stearin, fatty oils withdrawn.
• Exemptions to various kinds of papers withdrawn.
• 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.

• Defence equipment not manufactured in India exempted from basic customs duty

• Export duty rationalised on raw and semi-finished leather
• 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
• Legacy Dispute Resolution Scheme for quick closure of pending litigations in Central Excise and Service tax from pre-GST regime

• Ujjwala Yojana and Saubhagya Yojana have transformed the lives of every rural family, dramatically improving ease of their living.
• Electricity and clean cooking facility to all willing rural families by 2022.
• Pradhan M antri Awas Yojana – Gramin (PMAY-G) aims to achieve “Housing for All” by 2022:
  • Eligible beneficiaries to be provided 1.95 crore houses with amenities like toilets, electricity and LPG connections during its second phase (2019-20 to 202 1-22).
• Pradhan Mantri Matsya Sampada Yojana (PMMSY)
  • A robust fisheries management framework through PMMSY to be established by the Department of Fisheries.
  • To address critical gaps in the value chain including infrastructure, modernization,
    traceability, production, productivity, post-harvest management, and quality control.
• Pradhan Mantri Gram Sadak Yojana (PMGSY)
  • Target of connecting the eligible and feasible habitations advanced from 2022 to 2019
    with 97% of such habitations already being provided with all weather connectivity.
  • 30,000 kilometers of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint.
  • 1,25,000 kilometers of road length to be upgraded over the next five years under PMGSY III with an estimated cost of Rs. 80,250 crore.
• Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI)
  • Common Facility Centres (CFCs) to be setup to facilitate cluster based development for making traditional industries more productive, profitable and capable for generating sustained employment opportunities.
  • 100 new clusters to be setup during 2019-20 with special focus on Bamboo, Honey and Khadi, enabling 50,000 artisans to join the economic value chain.
• Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship‘ (ASPIRE)
  • 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) to be setup in 2019-20.
  • 75,000 entrepreneurs to be skilled in agro-rural industry sectors.
• Private entrepreneurships to be supported in driving value-addition to farmers‘ produce from the field and for those from allied activities.
• Dairying through cooperatives to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing & marketing.
• 10,000 new Farmer Producer Organizations to be formed, to ensure economies of scale for farmers.
• Government to work with State Governments to allow farmers to benefit from e-NAM.
• Zero Budget Farming in which few states‟ farmers are already being trained to be replicated in other states.
• India’s water security
  • New Jal Shakti Mantralaya to look at the management of our water resources and water supply in an integrated and holistic manner
  • Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural households by 2024
  • To focus on integrated demand and supply side management of water at the local
  • Convergence with other Central and State Government Schemes to achieve its
  • 1592 critical and over exploited Blocks spread across 256 District being identified for the Jal Shakti Abhiyan.
  • Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund can be used for this purpose.
• Swachh Bharat Abhiyan
  • 9.6 crore toilets constructed since Oct 2, 2014.
  • More than 5.6 lakh villages have become Open Defecation Free (ODF).
  • Swachh Bharat Mission to be expanded to undertake sustainable solid waste management in every village.
• Pradhan Mantri Gramin Digital Saksharta Abhiyan,
  • Over two crore rural Indians made digitally literate.
  • Internet connectivity in local bodies in every Panchayat under Bharat-Net to bridge rural-urban divide.
  • Universal Obligation Fund under a PPP arrangement to be utilized for speeding up Bharat-Net.

• Pradhan Mantri Awas Yojana – Urban (PMAY-Urban)-
  • Over 81 lakh houses with an investment of about Rs. 4.83 lakh crore sanctioned of which construction started in about 47 lakh houses.
  • Over 26 lakh houses completed of which nearly 24 lakh houses delivered to the
  • Over 13 lakh houses so far constructed using new technologies.
• More than 95% of cities also declared Open Defecation Free (ODF).
• Almost 1 crore citizens have downloaded Swachhata App.
• Target of achieving Gandhiji’s resolve of Swachh Bharat to make India ODF by 2nd October 2019.
  • To mark this occasion, the Rashtriya Swachhta Kendra to be inaugurated at Gandhi Darshan, Rajghat on 2nd October, 2019.
  • Gandhipedia being developed by National Council for Science Museums to sensitize youth and society about positive Gandhian values.
• Railways to be encouraged to invest more in suburban railways through SPV structures like Rapid Regional Transport System (RRTS) proposed on the Delhi-Meerut route.
• Proposal to enhance the metro-railway initiatives by:
  • Encouraging more PPP initiatives.
  • Ensuring completion of sanctioned works.
  • Supporting transit oriented development (TOD) to ensure commercial activity around transit hubs.

• New National Education Policy to be brought which proposes
  • Major changes in both school and higher education
  • Better Governance systems
  • Greater focus on research and innovation.
• National Research Foundation (NRF) proposed
  • To fund, coordinate and promote research in the country.
  • To assimilate independent research grants given by various Ministries.
  • To strengthen overall research eco-system in the country
  • This would be adequately supplemented with additional funds.
  • 400 crore provided for “World Class Institutions”, for FY 2019-20, more than three times the revised estimates for the previous year.
• ‘Study in India’ proposed to bring foreign students to study in Indian higher educational
• Regulatory systems of higher education to be reformed comprehensively:
  • To promote greater autonomy.
  • To focus on better academic outcomes.
• Draft legislation to set up Higher Education Commission of India (HECI), to be
• Khelo India Scheme to be expanded with all necessary financial support.
• National Sports Education Board for development of sportspersons to be set up under Khelo India, to popularize sports at all levels
• To prepare youth for overseas jobs, focus to be increased on globally valued skill-sets including language training, AI, IoT, Big Data, 3D Printing, Virtual Reality and Robotics.
• Set of four labour codes proposed, to streamline multiple labour laws to standardize and streamline registration and filing of returns.
• A television program proposed exclusively for and by start-ups, within the DD bouquet of channels.
• Stand-Up India Scheme to be continued for the period of 2020-25. The Banks to provide financial assistance for demand based businesses.

• About Rs. 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme that provides Rs. 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors.
• Approximately Rs. 35 crore LED bulbs distributed under UJALA Yojana leading to cost saving of Rs. 18,341 crore annually.
• Solar stoves and battery chargers to be promoted using the approach of LED bulbs
• A massive program of railway station modernization to be launched.

• Approach shift from women-centric-policy making to women-led initiatives and
• A Committee proposed with Government and private stakeholders for moving forward on Gender budgeting.
• SHG:
  • Women SHG interest subvention program proposed to be expanded to all districts.
  • Overdraft of Rs. 5,000 to be allowed for every verified women SHG member having a Jan Dhan Bank Account.
  • One woman per SHG to be eligible for a loan up to Rs. 1 lakh under MUDRA

• Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their arrival without waiting for 180 days.
• Mission to integrate traditional artisans with global markets proposed, with necessary patents and geographical indicators.
• 18 new Indian diplomatic Missions in Africa approved in March, 2018, out of which 5 already opened. Another 4 new Embassies intended in 2019-20.
• Revamp of Indian Development Assistance Scheme (IDEAS) proposed.
• 17 iconic Tourism Sites being developed into model world class tourist destinations.
• Present digital repository aimed at preserving rich tribal cultural heritage, to be

• NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year.
• Record recovery of over Rs. 4 lakh crore effected over the last four years.
• Provision coverage ratio at its highest in seven years.
• Domestic credit growth increased to 13.8%.
• Measures related to PSBs:
  • Rs. 70,000 crore proposed to be provided to PSBs to boost credit.
  • PSBs to leverage technology, offering online personal loans and doorstep banking, and enabling customers of one PSBs to access services across all PSBs.
  • Steps to be initiated to empower accountholders to have control over deposit of cash by others in their accounts.
  • Reforms to be undertaken to strengthen governance in PSBs.
• Measures related to NBFCs:
  • Proposals for strengthening the regulatory authority of RBI over NBFCs to be placed in the Finance Bill.
  • Requirement of creating a Debenture Redemption Reserve will be done away with to allow NBFCs to raise funds in public issues.
  • Steps to allow all NBFCs to directly participate on the TReDS platform.
• Return of regulatory authority from NHB to RBI proposed, over the housing finance
• Rs. 100 lakh crore investment in infrastructure intended over the next five years. Committee proposed to recommend the structure and required flow of funds through development finance institutions.
• Steps to be taken to separate the NPS Trust from PFRDA.
• Reduction in Net Owned Fund requirement from Rs. 5,000 crore to Rs. 1,000 crore proposed:
  • To facilitate on-shoring of international insurance transactions.
  • To enable opening of branches by foreign reinsurers in the International Financial Services Centre.
• Measures related to CPSEs:
  • Target of Rs. 1,05,000 crore of disinvestment receipts set for the FY 2019-20.
  • Government to reinitiate the process of strategic disinvestment of Air India, and to offer more CPSEs for strategic participation by the private sector.
  • Government to undertake strategic sale of PSUs and continue to consolidate PSUs in the non-financial space.
  • Government to consider going to an appropriate level below 51% in PSUs where the government control is still to be retained, on case to case basis.
  • Present policy of retaining 51% Government stake to be modified to retaining 51% stake inclusive of the stake of Government controlled institutions.
  • Retail participation in CPSEs to be encouraged.
  • To provide additional investment space:
    • Government to realign its holding in CPSEs
    • Banks to permit greater availability of its shares and to improve depth of its market.
  • Government to offer an investment option in ETFs on the lines of Equity Linked Savings Scheme (ELSS).
  • Government to meet public shareholding norms of 25% for all listed PSUs and raise the foreign shareholding limits to maximum permissible sector limits for all PSU companies which are part of Emerging Market Index.
• Government to raise a part of its gross borrowing program in external markets in external This will also have beneficial impact on demand situation for the government securities in domestic market.
• New series of coins of One Rupee, Two Rupees, Five Rupees, Ten Rupees and Twenty Rupees, easily identifiable to the visually impaired to be made available for public use

• TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account
• Business establishments with annual turnover more than Rs. 50 crore shall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants.

• Scheme to invite global companies to set up mega-manufacturing plants in areas such as Semi-conductor Fabrication (FAB), Solar Photo Voltaic cells, Lithium storage batteries, Computer Servers, Laptops, etc
  • Investment linked income tax exemptions to be provided along with indirect tax benefits.

• 1 trillion dollar added to Indian economy over last 5 years (compared to over 55 years taken to reach the first trillion dollar).
• India is now the 6th largest economy in the world, compared to 11th largest five years ago.
• Indian economy is globally the 3rd largest in Purchasing Power Parity (PPP) terms.
• Strident commitment to fiscal discipline and a rejuvenated Centre-State dynamic provided during 2014-19.
• Structural reforms in indirect taxation, bankruptcy and real estate carried out.
• Average amount spent on food security per year almost doubled during 2014-19 compared to 2009-14.
• Patents issued more than trebled in 2017-18 as against the number in 2014.
• Ball set rolling for a New India, planned and assisted by the NITI Aayog.

• Simplification of procedures.
• Incentivizing performance.
• Red-tape reduction.
• Making the best use of technology.
• Accelerating mega programmes and services initiated and delivered so far.

CBDT has notified detailed format of Salary Certificate, Form No. 16 , Form No. 24Q w.e.f. 12 th May 2019 vide Notification dated 12th April 2019:

Details of Salary Paid and any other income and tax deducted
1.	Gross Salary
(a)	Salary as per provisions contained in section 17(1)					Rs. …
(b)	Value of perquisites under section 17(2) (as per Form No. 12BA, wherever applicable)					Rs. …
(c)	Profits in lieu of salary under section 17(3) (as per Form No. 12BA, wherever applicable)					Rs. …
(d)	Total							Rs. …
(e)	Reported total amount of salary received from other employer(s)							Rs. …
2.	Less: Allowances to the extent exempt under section 10
(a)	Travel concession or assistance under section 10(5)					Rs. …
(b)	Death-cum-retirement gratuity under section 10(10)					Rs. …
(c)	Commuted value of pension under section 10(10A)					Rs. …
(d)	Cash equivalent of leave salary encashment under section 10(10AA)					Rs. …
(e)	House rent allowance under section 10(13A)					Rs. …
(f)	Amount of any other exemption under section 10
	clause …			Rs. …
	clause …			Rs. …
	clause …			Rs. …
	clause …			Rs. …
	clause …			Rs. …
	…			Rs. …
(g)	Total amount of any other exemption under section 10					Rs. …
(h)	Total amount of exemption claimed under section 10 [2(a) + 2(b) + 2(c) + 2(d) + 2(e) + 2(g)]							Rs. …
3.	Total amount of salary received from current employer [1(d)-2(h)]							Rs. …
4.	Less: Deductions under section 16
(a)	Standard deduction under section 16(ia)					Rs. …
(b)	Entertainment allowance under section 16(ii)					Rs. …
(c)	Tax on employment under section 16(iii)					Rs. …
5.	Total amount of deductions under section 16 [4(a)+4(b)+4(c)]							Rs. …
6.	Income chargeable under the head “Salaries” [(3+1(e)-5]							Rs. …
7.	Add: Any other income reported by the employee under as per section 192 (2B)
(a)	Income (or admissible loss) from house property reported by employee offered for TDS						Rs. …
(b)	Income under the head Other Sources offered for TDS						Rs. …
8.	Total amount of other income reported by the employee [7(a)+7(b)]								Rs. …
9.	Gross total income (6+8)								Rs. …
10.	Deductions under Chapter VI-A
							Gross Amount		Deductible Amount
(a)	Deduction in respect of life insurance premia, contributions to provident fund etc. under section 80C						Rs. …		Rs. …
(b)	Deduction in respect of contribution to certain pension funds under section 80CCC						Rs. …		Rs. …
(c)	Deduction in respect of contribution by taxpayer to pension scheme under section 80CCD (1)						Rs. …		Rs. …
(d)	Total deduction under section 80C, 80CCC and 80CCD(1)						Rs. …		Rs. …
(e)	Deductions in respect of amount paid/deposited to notified pension scheme under section 80CCD (1B)						Rs. …		Rs. …
(f)	Deduction in respect of contribution by Employer to pension scheme under section 80CCD (2)						Rs. …		Rs. …
(g)	Deduction in respect of health insurance premia under section 80D						Rs. …		Rs. …
(h)	Deduction in respect of interest on loan taken for higher education under section 80E						Rs. …		Rs. …
				Gross Amount			Qualifying Amount		Deductible Amount
(i)	Total Deduction in respect of donations to certain funds, charitable institutions, etc. under section 80G			Rs. …			Rs. …		Rs. …
(j)	Deduction in respect of interest on deposits in savings account under section 80TTA			Rs. …			Rs. …		Rs. …
(k)	Amount deductible under any other provision(s) of Chapter VI-A
	section …		Rs. …		Rs. …					Rs. …
	section …		Rs. …		Rs. …					Rs. …
	section …		Rs. …		Rs. …					Rs. …
	section …		Rs. …		Rs. …					Rs. …
	section …		Rs. …		Rs. …					Rs. …
	section …		Rs. …		Rs. …					Rs. …
	…		Rs. …		Rs. …					Rs. …
(l)	Total of amount deductible under any other provision(s) of Chapter VI-A		Rs. …		Rs. …					Rs. …
11.	Aggregate of deductible amount under Chapter VI-A [10(a) + 10(b) + 10(c) + 10(d) + 10(e) + 10(f) + 10(g) + 10(h) + 10(i) 10(j)+10(l)]									Rs. …
12.	Total taxable income (9-11)									Rs. …
13.	Tax on total income									Rs. …
14.	Rebate under section 87A, if applicable									Rs. …
15.	Surcharge, wherever applicable									Rs. …
16.	Health and education cess									Rs. …
17.	Tax payable (13+15+16-14)									Rs. …
18.	Less: Relief under section 89 (attach details)									Rs. …
19.	Net tax payable (17-18)									Rs. …
Verification
I, ……………………………. ., son/daughter of ………………………………….. working in the capacity of …(designation) do hereby certify that the information given above is true, complete and correct and is based on the books of account, documents, TDS statements, and other available records.
Place…(Signature		of person  responsible for deduction of tax)
Date…Full		Name :………………………….

“Annexure II
Details of salary paid or credited during the financial year………………………….. and net tax payable
Serial number.	Permanent Account Number of the employee.	Name of the employee.	Deductee type (Senior Citizen, Super Senior Citizen, Others).	Date from and date up to employed with current employer in the current financial year (dd/mm/yyyy).	Gross Salary as per provisions contained in section 17(1).	Value of perquisites under section 17(2) (as per Form No. 12BA, wherever applicable).	Profits in lieu of salary under section 17(3) (as per Form No.12BA, wherever applicable).	Total amount of gross salary received from current employer (see Note 1 for definition of Salary).
(330)	(331)	(332)	(333)	(334)	(335)	(336)	(337)	(338)

Reported total amount of salary received from other employer(s) (see Note 1 for definition of Salary).	Travel concession or assistance under section 10(5).	Death- cum- retireme nt gratuity under section 10(10).	Commuted value of pension under section 10(10A).	Cash equi-valent of leave salary encash-ment under section 10 (10AA).	House rent allowance under section 10(13A).	PAN of landlord, if exempt-ion is claimed under section 10(13A) (see Note 3).	Amount of any other exempt-ion under section 10.	Total amount of exemption claimed under section 10 (340 + 341 + 342 + 343 + 34 4 + 346).	Total dedu-ction under section 16(ia).
(339)	(340)	(341)	(342)	(343)	(344)	(345)	(346)	(347)	(348)

Total deduction under section 16(ii).	Total deduct-ion under section 16(iii).	Income chargea-ble under the head “Salaries” [338 + 339- (347 + 348 + 349 + 350)].	Income (or admissible loss) from house property reported by employee offered for TDS as per section 192 (2B).	PAN of lender, if interest on hous-ing loan is claimed under section 24(b) (see Note 4).	Income under the head other sources offered for TDS as per section 192 (2B).	Gross total income (351 + 352 + 354).	Deducti-on in respect of life insurance premia, contribut-ions to provident fund etc. under section 80C.	Deduction in respect of contribut-ion to certain pension funds under section 80CCC.	Deduction in respect of contribut-ion by taxpayer to notified pension scheme under section 80CCD(1).
(349)	(350)	(351)	(352)	(353)	(354)	(355)	(356)	(357)	(358)

Deducti-on in respect of amount paid or deposit-ed under notified pension scheme under section 80CCD (1B).	Deduction in respect of contribut-ion by employer to notified pension scheme under section 80CCD(2).	Deducti-on in respect of health insurance premia under section 80D.	Deducti-on in respect of interest on loan taken for higher educati-on under section 80E.	Total deduction in respect of donations to certain funds, charitable institutio-ns, etc. under section 80G.	Deducti-on in respect of interest on deposits in savings account under section 80TTA.	Amount deductible under any other provision(s) of Chapter VI‐A.	Total amount deducti-ble under Chapter VI‐A [356 + 357 + 358 (limited to Rs. 1,50,000) + 359 + 360 + 361 + 362 + 363 + 364 + 365].	Total taxable income (355 – 366).	Income tax on total income.

Rebate under section 87A, if applicable.	Surcharge, wherever applicable.	Health and education cess.	Income-tax relief under section 89, when salary, etc. is paid in arrear or advance.	Net tax liability [368 + 370 + 371 – (369 + 372)].	Total amount of tax deducted at source by the current employer for the whole year [aggregate of the amount in columns 325 of Annexure I for all the quarters in respect of each employee].	Reported amount of tax deducted at source by other employer(s) or deductor(s) (income in respect of which included in computing total taxable income in column 339).	Total amount of tax deducted at source for the whole year (374+375).	Shortfall in tax deduction (+) or excess tax deduction (-) (373-376).
(369)	(370)	(371)	(372)	(373)	(374)	(375)	(376)	(377)

1. Threshold limit under GST to take registration has now been increased to Rs. 40 lakhs (Any person, who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees) Notification No. 10/2019-Central Tax dated 07 March 2019

Particulars	Amount (In Crores)
Full value of consideration Less: Cost of acquisition (ignoring the benefit of indexation)	10 (2)
Long-term Capital Gains Less: Section 54 exemption	8 (4)
Taxable long-term capital gains	4

Particulars	Amount (In Crores)
Full value of consideration Less: Cost of acquisition (ignoring the benefit of indexation)	10 (9)
Long-term Capital Gains Less: Section 54 exemption	1 (1)
Taxable long-term capital gains	Nil

Particulars	Amount (In Crores)
Full value of consideration Less: Cost of acquisition (ignoring the benefit of indexation)	10 (2)
Long-term Capital Gains Less: Section 54F exemption (in proportion to sales consideration invested in one house, i.e., 8*4/10)	8 (3.2)
Taxable long-term capital gains	4.8

Particulars	Amount (In Crores)
Full value of consideration Less: Cost of acquisition (ignoring the benefit of indexation)	10 (9)
Long-term Capital Gains Less: Section 54F exemption (in proportion to sales consideration invested in one house, i.e., 1*0.50/10)	1 (0.05)
Taxable long-term capital gains	0.95

Disclaimer: In the illustrations no 3 & 4, we have assumed that Mr. A doesn’t own more than one residential house on the date of sale of residential house. We have taken this assumption so as to understand the impact of this amendment. In absence of this assumption, Section 54F exemption would not be available as Mr. A buys a new house within one year from date of transfer of original asset.

	Resident Individual
	Taxable Income	Tax liability (Pre Budget)	Tax liability (Post Budget)
	2,50,000	–	–
	3,50,000	2,500	–
	5,00,000	12,500	–
	6,00,000	32,500	32,500
	10,00,000	1,12,500	1,12,500
	Note: Health & Education Cess at 4% shall be in addition to income-tax calculated above

	Payer	Threshold limit if Payee is
		Senior Citizen	Others
	Banking Co.	50,000	40,000
	Co-operative Society engaged in banking business	50,000	40,000
	Post Office	50,000	40,000
	In any other case	5,000	5,000