The maiden budget of Finance Minister Nirmala Sitharaman has invited mixed reaction from the economists, finance community and the common man. Most of us look at the chart where it shows what is gone cheaper and what has risen to become expensive. However, we have managed to jot down the positive and negative parts of the Budget 2019. Here it is:
-The best part of the budget would definitely include the Aadhaar-PAN interchangeability which gives an easy access to file your income tax returns.
In addition to that, those who do not have PAN can simply quote their Aadhaar number wherever PAN is mandatory to quote.
-Encouraging Electric Vehicles
Sitharaman announced that upfront incentive will be offered on purchase of electric vehicles, adding that the government has already moved GST Council to cut rate for EVs To 5% from 12%. Sitharaman's other big announcement on EVs pertained to (a) tax deduction of Rs 1.50 lakh on EV loan interest, and (b) No custom duty on certain parts of EVs.
-Respite from Angel Tax
In a major respite for startups, it was announced that startups and investors who file requisite declarations and provide information in their returns will not be subjected to any scrutiny on valuation.
-Rs 3,000 pension per month for informal sector workers
Around 30 lakh workers are now covered under the Pradhan Mantri Shram Yogi Maandhan Yojana, the scheme that provides a monthly pension of Rs 3,000 to informal sectors workers after they turn 60.
-Reform of rental housing
Rental laws will be reformed, Sitharaman announced. Modern tenancy law will be shared with states to promote house renting. The current mechanism doesn't adequately address the relationship between the tenant and the landlord.
-In a blow to owners of cars and bikes, Sitharaman proposed to increase Special Additional Excise duty and Road and Infrastructure cess each by one rupee a litre on petrol and diesel.
-The finance minister shunned the wealth tax, but increased the surcharge for the rich, proposing to increase the surcharge for those earning Rs 2-5 cr 3 per cent and for those earnings above Rs 5 cr to 7 per cent.
-Standard deduction and TDS threshold didn't find a mention in Sitharaman's budget. It came as dampener for the salaried taxpayer because Piyush Goyal had promised to hike these limits in his February interim budget.
-The budget turned out to be big damp squib for the armed forces. At a time when India's security risks are at an all-time high, no specific mentioned of the forces came as a major dampener for both the forces and the country at large.
-No move was announced to ease one of India's biggest pain points as there wasn't a mention on creating of employment