Finance minister Nirmala Sitharam presented the Budget 2019-20 today. Following are the key highlights:
MSME and Start-ups
- A new online payment platform to be created for MSMEs to find their bills and payment details.
- Loans upto ₹1 crore will be granted to MSMEs within 59 minutes through a dedicated online portal.
- 2 percent interest SOP for GST compliant MSMEs.
- Television programme exclusively for startups by startups.
- Startups will not require scrutiny by IT department.
- Startups not needed to disclose their share values – extends to category AIF-2
Taxation
- 25% corporate tax on companies having 400 cr turnover. This will cover and benefit 99.3 percent of all the companies.
- GST decreased GST on electronic vehicle from 12 to 5 per cent.
- Tax deduction on interest rate loan for purchase of electronic vehicle.
- Surcharge to be increased to 3% and 7% on individual with income from 2 crore to 5 crore and with Rs 5 crore and above, respectively.
- PAN and Adhaar to be interchangeable for IT Returns.
- 2 percent TDS on more than 1 crore cash withdrawal per year from a bank account to discourage.
- Capital gains exemption from profits earned by selling residential house for investing in start-ups. This exemption is allowed up to March 31, 2021.
- GST return module by January 2020. No separate e-way bill will be required. E-Invoice System will be introduced.
Investment
- Minimum public shareholding in listed companies can be increased from 25% to 35%.
- Limit on FPI in a company increased to 24%. NRI investment to merged with FPIs.
- AA rated bonds as to be considered collateral.
- Social stock exchange under SEBI.
- Retail investment in treasury bills.
- 100 percent FDI will be allowed for insurance intermediaries.
- On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt will provide one-time 6 month credit guarantee.
- One time credit guarantee on first loss of NBFC.
Others
- E- Vehicles to be incentivized in order to promote pollution free public transport. Custom duty exempted for parts of e-vehicles.
- Cargo transport estimated to increase by 4 times, in river Ganga, which would increase import bills.
- One grid power supply for full nation. There will be a reform in electricity Power tariffs.
- Multiple labour laws to be streamlined into 4 labour codes.
- No cost on digital payment.