Source : The Times of India, Last updated : 5 Jul 2019,8:45 pm

Union Budget 2019-20: Sector-wise highlights

Union Budget 2019-20: Sector-wise highlights
NEW DELHI: The Union Budget 2019-20, presented by finance minister Nirmala Sitharaman on Friday lays out the roadmap for a 'New India'. It reflects upon economic growth, employment generation, development in infrastructure and social sector.

Here is how it will impact different sectors:


Middle class

- Additional deduction of up to Rs 1.5 lakh for interest paid on loans for purchase of house of value up to Rs 45 lakh

- PAN and Aadhaar will become interchangable. Those who do not have PAN will be allowed to file income tax return (ITR) using their Aadhaar number.

- Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase electric vehicles



Youth

- New Education Policy will transform the higher education system of India to one of the best global education systems

- National Research Foundation has been created to fund, co-ordinate and promote research

- 'Study in India' Programme to help India attract foreign students to make India a global higher education hub

- Setting up 'Higher Education Commission of India' to promote greater autonomy and focus on academic outcomes

- Setting up of National Sports Education Board for development of sportspersons under Khelo India Scheme

Women Entrepreneurs

- To encourage women enterprise, women self-help group (SHG) interest subvention programme to be expanded to all districts

- Every verified women SHG member having a Jan Dhan Bank Account, to be allowed an overdraft of Rs 5,000

- One woman in every SHG to be made eligible for a loan up to Rs 1 lakh under the Mudra Scheme

Small Business

- Under the Interest Subvention Scheme, Rs 350 crore has been allocated for 2 per cent interest subvention for all GST registered MSMEs on fresh or incremental loans

- Creation of payment platform for MSMEs to enable filing of bills and payment thereof, to eliminate delay in payment

- Pension benefit extended to three crore retail traders and shopkeepers with annual turnover of up to Rs 1.5 crore, under Pradhan Mantri Karam Yogi Maandhan Scheme

Budget 2019: What's costlier, what's cheaper

Finance minister Nirmala Sitharaman on Friday presented her maiden budget and the first of the Modi government in its second term. Petrol, diesel, cigarettes, hookah, gold, silver, fully-imported cars and split air-conditioners will become expensive. While, electric vehicle components, camera module, mobile phones chargers, import of defence equipment will become cheaper.


Farmers

- Pradhan Mantri Matsya Sampada Yojana to establish robust fisheries management framework to address critical gaps in value chian

- Dairying through co-operatives to be encouraged by creating infrastructure for milk procurement, processing, and marketing

- Creation of 10,000 new farmer producer organisations to ensure economies of scale for farmers over next 5 years

- Innovative pilots of 'Zero Budget Farming' to be replicated across the country for doubling farmers income

Start Ups

- Start ups not to be subject to any scrutiny in respect of valuations of share premiums to resolve 'angel tax' issue

- E-verification to resolve the issue of establishing identity of the investor and source of his funds

- Start ups are no longer required to justify fair market value (FMV) of their shares issued to Category-II AIFs (alternate investment funds) to protect them from unnecessary income tax scrutiny

- Relaxation in conditions for carry forward and set off of losses

- Exemption of capital gains arising from sale of residential house for investment in start ups, extended up to March 31, 2021



Finance sector

- Public sector banks to be further provided Rs 70,000 crore capital to boost credit for a strong impetus to the economy


- Regulation authority over the housing finance sector to return to RBI from NHB to ensure efficient and conducive regulation of the housing sector


- Strengthening the regulatory authority of RBI over NBFCs to ensure robust regulation
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