The Interim Budget

2019-20

-An Analysis
“This is not merely an Interim Budget, but a medium of the country's development journey.
All the transformation that we are witnessing, is because of the passion of the people of our
nation. The credit goes to them only. Development has become a mass-movement during the
period of our Government.”
“We will transform India into a leading nation of the world with the help of our people. We,
along with them have laid the foundation. A grand edifice will be erected with their support.
We have given a decisive leadership, whose intent is clear, policy is transparent and integrity
is resolute”
- Piyush Goyal

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 Key Highlights
Interim Budget
(2019)

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 Proposed Amendments to Income Tax
Law Sec Proposed Amendments to Income Tax Law

The Finance Act 2018 introduced a standard deduction of INR 40,000 from salary income of all individual taxpayers. The (interim)
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finance minister proposes to increase such standard deduction from INR 40,000 to INR 50,000.

The Interim budget proposes to provide relief to the taxpayer by allowing them an option to claim nil annual value in respect of
any 2 houses, declared as self-occupied, instead of 1 such house as currently provided.
23
-Notional rent in respect of unsold inventory shall not be charged to tax up to 2 years, instead of existing 1 year, from the end
of the financial year in which the certificate of completion is obtained from the competent authority.

The finance bill 2019 proposes to amend section 24 of the IT Act by inserting a new proviso stating that the limit of deduction in
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respect of both properties shall not exceed INR 2,00,000.

Finance Bill 2019 proposes to provide relief to the taxpayers having LTCG up to INR 2 Crore, arising from transfer of a
54 residential house, by affording the assessee a one time opportunity, at his option, to utilise the said amount for the purchase or
construction of 2 residential houses in India instead of 1 residential house as currently provided.

The (Interim) Finance Minister proposes to extend the sunset period for affordable houses from 31st March, 2019 to 31st
80IBA
March, 2020 for obtaining approval of the housing project for availing deduction.

Finance bill 2019 proposes to provide tax rebate to taxpayers having total income up to INR 5 Lakhs, instead of existing INR
87A
3.5 Lakhs. The amount of tax rebate proposed to be increased from INR 2,500 to 12,500.

In order to provide relief to small taxpayers, it is proposed to increase the exemption threshold for withholding tax as follows
Sec Nature Increased Limit
tax at source on interest income, other than interest on securities, paid by a banking
194A company, co-operative society or a post office INR 10,000 to INR 40,000
194I tax at source on rental income INR1,80,000 to INR 2,40,000
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 Proposed Amendments to other Law
Proposed Amendments to Money-laundering Act
➢ Time limit for which the attachment shall remain valid during the period of investigation extended from 90 days to 365 days.
➢ Period during which the investigation is stayed by any court to be excluded from the calculation of 365 days
Proposed Amendments to Customs Act, 1962
➢ To promote "Make in India" the government has abolished duties on 36 Capital goods

➢ Indian Customs is introducing full and comprehensive digitalization of export/import transactions and leveraging RFID
technology to improve export logistics.

Proposed Amendments to Indian Stamp Act, 1899

➢ New Definition
It is proposed to provide definition for “allotment list”, “debenture”, “market value” and “securities” under Indian Stamp Act.
➢ Amendment to the Definition of ‘Instrument’ & ‘Marketable Securities’
Definition of instrument has been expanded to include electronic document created for a transaction in a stock exchange or
depository by which any right or liability is or purports to be, created, transferred, limited, extended, extinguished or
recorded and any other document mentioned.

It is proposed that marketable securities would mean a security capable of being traded in any stock exchange in India.

➢ In case of issue of securities through stock exchange or depository

The Finance bill proposes to insert new section 9A which provides that stamp duty on sale of any securities through stock
exchange or depository shall be collected from buyer on behalf of State Government by the authorised stock exchange or a
clearing corporation or depository as the case may be. The duty will be collected on basis of the market value of the
securities at time of settlement of transactions in securities of such buyer.

➢ In case of issue of securities other than through stock exchange or depository

In case of issue of securities made by issuer otherwise than through a stock exchange or depository the stamp duty on each
such issue shall be payable by the issuer at a place where registered office is situated. The duty will be calculated on the
market value of the securities so issued at rate specified.

➢ Change in Stamp duty on Debentures

Stamp duty on issue of debenture will be levied @0.005% and incase of re-issue it will be levied @ 0.0001%.
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 Other Proposed Initiative

➢ Govt announces PM Kisan Samman Nidhi (PM-KISAN) for small farmers. Farmers having up to 2 hectare of lands
will get direct income support of INR 6,000 per year (in 3 equal installment of INR 2,000 each)

Farmer's It has been propose to provide Extension in facility of Kisan Credit Card scheme (KCC)
progress and ➢ 2% interest subvention to the farmers pursuing the activities of animal husbandry and fisheries, who avail loan through
Increase in Kisan Credit Card.
Income ➢ Additional 3% interest subvention in case of timely repayment of loan

➢ Setting up of "Rashtriya Kamdhenu Aayog" to upscale sustainable genetic up-gradation of cow resources and to
enhance production and productivity of cows.

➢ Pradhan Mantri Shram-Yogi Maandhan has been announced for the unorganized sector workers with monthly
income upto INR 15,000.
➢ The yojana shall provide an assured monthly pension of INR 3,000 from the age of 60 years on a monthly contribution
Labour &
of a small amount during their working age.
Worker dignity
➢ Worker joining pension yojana at the age of 29 years will have to contribute only INR 100 per month till the age of 60
years.
➢ A worker joining the pension yojana at 18 years, will have to contribute as little as INR 55 per month only.

Simplification ➢ It has been proposed to introduce a technology intensive project wherein all tax returns will be processed within 24
of Direct Tax hours of filing and tax refunds to be issued simultaneously.
System

➢ Single window clearance for ease of shooting films, available only to foreigners, is now going to be made available to
Entertainment Indian filmmakers.
➢ Introduction of anti-camcording provisions in the Cinematograph Act to control the menace of piracy.

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 Vision for next Decade
To build physical as well as social infrastructure for a ten Trillion Dollar economy
and to provide ease of living.

To create a Digital India reaching every sector of the economy

Making India a pollution free nation with green Mother Earth and blue skies

Expanding rural industrialization using modern digital technologies to generate massive

employment

Clean Rivers, with safe drinking water to all Indians, sustaining and nourishing life and
efficient use of water in irrigation using micro-irrigation techniques.

Powering India’s development and growth coastline and ocean waters

The outer skies-Placing an Indian astronaut into space by 2022

Making India self-sufficient in food, exporting to the world to meet their food needs
and producing food in the most organic way

A healthy India

Our employees working together with the elected Government, transforming India
into a Minimum Government Maximum Governance nation.

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