Top 10 Big Things About Indian Union Budget 2019
1. Income Tax hurting Ultra-Rich People(HNI) -:
Income Tax Rates Remains Unchanged but surcharged in Income Tax has gone up for the high net-worth individuals. Surcharged has been raised by 3 percent for those earning 3crore to 5crore a year and 7 percent for those earning Rs 5 crore and more which raised the effective tax to 39 percent in the Rs 2-5 crore bracket and 42.74 percent for 5 crores and above bracket.
2. Good Stocks At Cheaper Price :
The Finance Minister said the government will ask SEBI to raise minimum public float limit for listed firms from 25 percent to 35 percent. This will lead to a supply of papers of some very high quality, high PE Companies, which are now trading at high prices. So expect to get some of these stocks cheap.
3. Petrol and Diesel prices go up
The FM has proposed an additional excise duty and road and infrastructure cess of Rs 1 on every litre of petrol and diesel sold in the country. This will raise fuel prices but then oil prices have softened quite a bit from their high.
4. The Prices of Gold Goes up
The FM increased customs duty on gold and other precious metals from 10 per cent to 12.5 per cent, which will make the precious metal more expensive . Shares of gems and jewellery companies fell sharply in response to the move. This may bring down physical demand for gold due to high prices.
5.Small Risk of Interest Rate Hike
Government is proposing to raise a part of its market borrowing from the offshore market, Governement borrowing is unlikely to put pressure on local bonds and thus interest rates . This may, in fact, help RBI continue the low-interest rate regime.
6. Bank Transaction Tax won't pinch you:
The Finance Minister proposes to levy 2 per cent tax on cash withdrawal of over Rs 1Crore in a year . In order to encourage more digital and cheque payment which is transparent.
7. ETF another tax saving option
The finance minister announces plans to launch a CPSE ETFs on the lines of equity-linked savings scheme or ELSS which means you will be able to avail income tax deduction on the investment made in this ETF under Section 80 C of Income Tax Act
8.Securities Transaction Tax Tweaked
The FM streamlined the securities transaction tax or STT by Restricting it to only the difference between the settlement and strike prices in case of exercise of Options. This will be a relief for traders as now they won't have to be worried about compulsorily squaring off in the money options before expiry.
9.Reduction of Interest On Home Loans
The FM allowed an additional deduction of up Rs 150000 on interest paid on home loans borrowed up to March 31,2020 for purchase of an affordable house valued up to Rs 45 lakh. So if you bought an affordable home, you get an income tax deduction on interest payment of up to RS 3.5 Lakh a year.
10 PAN & Aadhar Interchangeable
PAN Card and Aadhar become interchangeable for the convenience of taxpayers. Now those who do not have PAN card to file tax returns will be able to do so by quoting Aadhar number and use it wherever they require to use PAN.
