Budget 2019: Highlights of Taxation

The most eagerly awaited aspect of the Union Budget 2019 was the taxation part and it was very well-handled by the Cabinet. In her budgetary address, Finance Minister Nirmala Sitharaman on one hand announced an exemption of income tax for all taxpayers with income of less than Rs. 5 Lakh, while increasing taxes for higher income slabs. 

Highlights:

• 1. Direct tax revenue has increased by 78% from 2014 to 2019

  2. Tax proposals aim to stimulate growth, incentivise affordable housing

  3. Turnover limit for 25% Corporate Tax raised to Rs 400 crore from Rs 250 crore

  4. Govt has already moved GST Council to cut rate for EVs To 5% from 12%

  5. Additional income tax deduction of Rs 1.5 lakh on interest paid on loans for electric vehicles

  6. Additional Rs 1.5 lakh deduction on interest paid for affordable housing loans till March 2020

  7. Govt proposes to give relief in levy of Securities Transaction Tax

  8. Govt proposes to make PAN & Aadhaar Card inter-changeable

  9. TDS of 2% for withdrawals of Rs 1 crore in a year from bank accounts​​ for business payment

  10. Effective Income Tax increase of 7% for those earning over Rs 5 crore

  11. Effective Income Tax increase of 3% for those earning Rs 2-5 crore

  12. Taxpayers with annual turnover of less than Rs 5 crore to file only quarterly returns

  13. Customs duty increased on PVC, vinyl flooring, tiles

  14. Govt imposes 5% customs duty on imported books