20 Changes announced in Budget 2019 by Finance Minister

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The following are the major changes announced in Finance (No. 2) Bill 2019 announced by FM Nirmala Sitharaman on 05th July 2019

Tax Rate reduced to 25% to companies having turnover of Rs. 400 crores in Year ending 31st March, 2020 ( earlier Rs. 250 Crores Turnover)

 

  1. No change in Income Tax Slabs and Threshold Limit
  2. 70,000 crores to be given to PSU Banks (liquidity will be improved in the economy)
  3. Additional Deduction of Rs. 1.5 Lacs for interest on loan for Electric Vehicle Purchase
  4. Additional Deduction of Rs. 1.50 Lacs for interest on Housing Loan for houses upto Rs. 45 Lacs (Other conditions also applies)
  5. Lower STT for Future and Option Contracts in Share market
  6. PAN CARD and AADHAR Card Interoperable for certain transactions.
  7. Higher Surcharge on Tax for Assesses having annual income more than Rs. 2 Crores.
  8. TDS @ 2% for cash withdrawal exceeding Rs. One Crores in one bank account for a year – Section 194N
  9. Custom Duties increased on many products, specially, on import of Cashew Kernel, PVC, few autoparts, synthetic rubber, CCTVs, Fibre Cable etc.
  10. Custom Duty increased on Gold from 10% to 12.5%
  11. Cess increased on Petrol and Diesel
  12. Basic Excise duty will be imposed on Tobacco Products
  13. Easing FDI Norms for Insurance and Aviation Sector
  14. Govt intends to increase retail shareholding from 25% to 35% in listed companies.
  15. Faceless Scrutiny and Assessment in Income Tax is close to becoming a reality
  16. Introduction of Section 194M – TDS on payment to contractor/ professional in excess of Rs. 50 Lakhs by any person
  17. Mandatory furnishing of Income Tax Return by certain class of individuals
  18. Deduction of Rs. 1.5 Lakhs for payment of Interest on purchase of Electric Vehicle under Sec 80EEB
  19. 5% TDS on Net Income under Section 194DA for payment of any sum to a resident under a life insurance policy.
  20. Mandatory furnishing of income tax return by certain class of individuals.

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