6 Major decisions of the Budget 2019
by Agam Gupta 2.21K
The Modi government is all set for the second term with their vision of New India. The government has set a goal of making India a 5 trillion economy in next few years. With this figure in mind, the budget of 2019 was framed. Apart from investment plans of billions of dollars, there are some decisions which will impact the common man in the foreseeable future.
Let us discuss the six major takeaways from the Budget 2019:
1. Pension to Three crore retail traders and shopkeepers
This is one of the most important decisions which will have a positive impact on the retail traders and shopkeepers in India. The benefit of pension under Pradhan Mantri Karam Yogi Maandhan scheme, will be extended to about three crore retail traders and small shopkeepers whose total annual turnover is less than Rs.1.5 crore.
Further, to avail this scheme, a person just needs to provide his Aadhar card, bank account and a self declaration.
2. File Income Tax Return (ITR) with Aadhar card
Earlier, a persona can file his income tax return (ITR) if he has a valid PAN card. But to ease the process of filing the ITR, a person can now file it simply by using his Aadhar card number.
3. Income Tax Deduction on Electric Vehicles
Have you ever thought that government will give you income tax benefit for buying a car? Yes, you heard it right. The government has proposed a additional income tax deduction of Rs.1.5 lakh on the interest paid on loans taken to purchase the electric vehicles.
In total, it amount to the benefit of around Rs.2.5 lakh over the loan period. Further, government has also decided to lower the GST on electric vehicle from existing 12% to 5%.
4. No more horrors of angel tax for startups
The issue of angel tax which has proved no less than a devil tax for legitimate startups and venture capitalist, has been dealt with properly under this budget. The start-ups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums.
Further, the issue of establishing identity of the investor and source of his funds will be resolved by putting in place a mechanism of e-verification.
5. Startup friendly Tax Exemptions and Policies
Now a day, youth of India is more interested exploring the startup space than jobs of MNC. To support their dreams, the government of India has decided to extend the benefit of capital gain invested into startups by two more years. The period of exemption of capital gains arising from sale of residential house for investment in a eligible startup shall be available until 31 March, 2021.
6. Housing made more affordable (Housing for all)
If you are dreaming of buying a house, then the time is now because government has provided additional tax deduction of Rs.1.5 lakh per annum on interest paid to buy a house valued up to Rs.45 lakhs.
Currently, interest paid on housing loans is allowed as deduction to the extent of Rs.2 lakh in respect of self occupied property. Hence, to further extend the benefit, government has proposed to allow an additional deduction of Rs.1.5 lakhs for the interest paid on loans borrowed up to 31st March, 2020. However, the value of house should not exceed Rs.45 lakh.
Read the complete budget