2019 Interim-Union budget of India by Mrs. Nirmala Sitharaman



2019 Interim-Union budget of India by Mrs. Nirmala Sitharaman


Here are the highlights of India's first Union Budget 2019. Which is proposed by a new finance minister, Mrs. Nirmala Sitharaman.

► General Comments and Proposals:


  • Stringent Commitment to Fiscal Discipline
  • Number of patents has tripled in last 5 years
  • Economy reached $2.7 trillion in last 5 years
  • India now the 6th largest economy in the world; 3rd best economy in terms of purchasing power
  • $5 Trillion mark well within our reach


  • Target to achieve $3 Trillion mark in 2019 itself
  • Emphasis of MSMEs, Star-ups, Defence
  • Need to invest heavily in Infrastructure
  • Major reforms planned to serve the Aam Aadmi
  • India’s private sector industry aided growth
  • Gone are the days of policy paralysis
  • Connectivity is the life grid of economy; dedicated freight corridors in pipeline
  • Udaan scheme to provide air connectivity; Sagarmala for road, rail, port connectivity
  • India must enter aircraft financing
  • Hope to become self-sufficient in aviation
  • Big metro line push for new India
  • Push for National Common Mobility Card; multiple transport charges with one inter-operable transport Rupay card
  • Upfront incentive for producing and purchasing electronic vehicles; providing infrastructure for charging e-vehicles
  • Need to develop inland waterways; Jal Marg for inland cargo movement
  • Jal marg terminal in Varanasi operational; jal marg via Ganga to increase 6 fold
  • 50 lakh crores needed for Jal Marg scheme
  • One Nation – One grid scheme; will make power sharing more efficient
  • UDAI scheme for DISCOMs to be improved
  • Easy, hassle free loan schemes for MSMEs; loans upto 1 crore in 59 minutes
  • 2% interest subvention for all GST registered MSMEs
  • Pension for 3 crore retail traders to be extended to ensure social security
  • Rental laws to be reformed
  • Proposal to reform KYC for FPIs
  • Social Stock Exchange under SEBI proposed
  • Electronic Fund raising platform in process
  • FDI inflows have remained robust; 54.3 billion USD in last year, 6% increase over last year.
  • 100% direct FDI will be permitted to insurance intermediaries
  • Examining scope of opening FDI in aviation and media
  • Boost to single band retail FDI
  • Plan to host annual Global Investors’ Meet
  • India world’s top remittance recipient
  • Focus on Gaon, Grameen, Kisaan


  • Ujjwala scheme has been a game changer with unprecedented expansion
  • Power and LPG to all rural households by 2022 other than those who are unwilling to take
  • 95 Crore houses to be provided under Awaas Yojana – Grameen
  • Fishing industry crucial to economy; focus on infrastructure modernisation with robust fisheries schemes proposed
  • Gram Sadak Yojana Phase-3 to be launched; major boost to all weather connectivity
  • 125000 kms to be constructed by next 5 years
  • Cluster based development for productivity; big thrust to traditional industries
  • Big announcement for farmers; hope to make 10000 farmer groups
  • Skill 75000 rural entrepreneurs
  • Ease of business and living must apply to farmers
  • Back to basics – zero budget farming to return; steps to double farmer’s income
  • Adequate and clean potable drinking water for all rural households under Har Ghar Jal scheme by 2024
  • Sustainable water supply management
  • 60 crore toilets have been constructed since October 2016 under Swacch Bharat Scheme
  • Over 5 lakh villages have been made open defecation free
  • Sustainable solid waste management in every village to be included under Swacch Bharat Scheme
  • 2 crore rural Indians have been made digitally literate
  • 81 lakh houses with investment of over INR 4.83 lakhs sanctioned under the Awaas Yojana – Urban; over 26 lakh houses already constructed
  • 95% of all cities have been declared open defecation free (ODF); 100% ODF by 2nd October, 2019
  • New National Research Foundation to be launched for youth; focus on youth and employment
  • Major changes for school and higher education envisaged
  • 3 Indian colleges in world’s top 200
  • Bid to invite foreign students to India; “Study in India” scheme to be launched
  • Focus on sports development; launch of “Khelo India” scheme
  • Industry relevant skill training for youth; over INR 10 million allocated for the scheme
  • 35 crore LED bulbs distributed
  • Proposal to streamline multiple labour laws; only 4 basic labour codes to standardise laws proposed
  • TV channel with program exclusively for start-ups; under the DD bouquet
  • 3000 crore pension for unorganised labour
  • Focus on ease of living for residents of new India; focus on clean environment
  • Big push for women empowerment; gender analysis of budget in place
  • Aadhaar Card for NRIs on return under 180 days on arrival
  • Efforts to link artisans to world market
  • 18 new diplomatic missions in Africa


  • Digital move to preserve tribal heritage
  • 17 iconic sites identified to promote tourism
  • NPAs of banks have reduced by INR 1 lakh crores
  • Record recovery of INR 4 lakh crores made in last year under insolvency code
  • Public sector banks to be provided INR 70000 crores recapitalisation to boost capital to improve credit
  • One time credit guarantee for NBFCs
  • 100 lakh crore for housing infrastructure
  • RBI to regulate housing loan finance sector
  • Will reinitiate disinvestment in select NBFCs
  • Government resolved to reinitiate disinvestment of Air India
  • India’s sovereign external debt to GDP lowest among the world at less than 5%
  • New series of coins of INR 1, 2 5, 10 and 20 easily identifiable to the visually impaired launched in March 2019 to be made available to public use shortly.
  • 105000 crore disinvestment target for the Government


► Direct Tax proposals:


  • Direct tax revenue has increased by over 78% from INR 6.38 lakh crores in FY 2013-14 to INR 11.37 lakh crores in FY 2018-19
  • Growing at double digit rates every year
  • Lower corporate tax rate of 25% extended to companies having annual turnover upto INR 400 crores
  • The lower corporate tax rate will cover 99.30% of all companies registered in India
  • Additional deduction of INR 1.50 lakh for interest paid on purchase of electric vehicles; this is apart from the proposal under indirect tax to reduce GST rate on electric vehicles from 12% to 5%
  • Valuation of Funds raised by start-ups will not require any scrutiny by the Income Tax department


  • Period of exemption on capital gains for investment in start-ups extended upto end of March, 2021
  • Additional housing loan deduction of INR 1.50 lakhs over the existing INR 2.00 lakhs for interest paid on purchase of affordable house upto INR 45 lakhs purchased till end of March, 2020
  • Inter-changeability of PAN and Aadhaar by allowing assessees to file Income Tax returns by just quoting Aadhaar number instead of PAN for those who do not have PAN
  • Faceless e-assessment involving no human interface to be launched from this year in a phased manner
  • Central Cell will issue notices electronically without disclosing the details of the assessing officer and this central cell will only be the contact point between the assessee and the assessing officer
  • TDS @ 2% applicable for cash withdrawals over INR 1 Crore in a year from any bank account
  • Business establishments with annual turnover over INR 50 crores to provide digital payment options to customers with no charges for customers or the merchants. RBI and the banks to absorb these costs
  • Surcharge on Individuals having annual income over INR 2 crores and over INR 5 crores of 3% and 7% respectively


► Indirect Tax proposals:


  • Taxpayers having annual turnover of upto 5 crores will be required to file only quarterly returns
  • Proposal to have only one single monthly or quarterly return
  • Electronic invoicing system to be rolled out by Jan 2020; will eliminate the requirement for e-way bills

Below is the live Youtube streaming video of 2019 Interim-Union budget of India

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