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Budget at a Glance:
Highlights on GST
- Benefit to MSMEs through enhanced threshold and composition limits.
- 20 per cent reduction in turn around time for trucks.
- Savings of about 4 per cent of monthly spending for an average household.
- In last 2 years, 60 lakh new taxpayers added and 105 crore e-way bills generated
Highlights on FINANCIAL SECTOR
- Deposit Insurance Coverage to increase from `1 lakh to `5 Lakh per depositor
- Eligibility limit for NBFCs for debt recovery under SARFAESI Act proposed to be reduced to asset size of `100 crore or loan size of `50 Lakh.
- Proposal to sell balance holding of government in IDBI Bank Proposal to sell balance holding of government in IDBI Bank.
- Separation of NPS Trust for government employees from PFRDAI.
- Specified categories of government securities would be opened Specified categories of government securities would be opened for non resident investors
- FPI Limit for corporate bonds to be increased to 15 per cent.
- New debt ETF proposed mainly for government securities.
Highlights on TAX Proposal:
- Concessional corporate tax rate of 15 per cent to new domestic companies in manufacturing and power sector.
- Tax concession for sovereign wealth fund of foreign governments and other foreign investments.
- Tax benefits to Start-ups by way of deduction of 100 per cent of their profits are enhanced by increasing turnover limit and period of eligibility.
- Concessional tax rate for cooperatives proposed.
- Turnover threshold for audit of MSMEs increased.
- Extension of time limits pertaining to the tax benefits for affordable housing.
- Issuance of Unique Registration Number to all charity institutions for easy tax compliance.
- Health cess to be imposed on imports of medical equipment given these are made significantly in India
- Dividend Distribution Tax removed and classical system of dividend taxation adopted.
- Simplified GST return shall be implemented from 1st April 2020. Refund process to be fully automated.