Union Budget 2019 highlights – What’s in budget for you individually and as a Business

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Here are the highlights of Union Budget 2019 – What’s in the budget for the citizens, businesses, various sectors and major Govt achievements.

Union Budget 2019 highlights

Micro, Small and Medium Enterprises (MSMEs)

  • Rs 350 cr allocated for 2% interest subvention for all GST-registered MSMEs on fresh loans. 
  • Pension for shopkeepers & retailers with a turnover of less than Rs. 1.5 crore to be launched under Pradhan Mantri Karma Yogi Maan Dhan Scheme.
  • Business establishments with more than Rs.50 Crores will offer a low-cost online payment facility to its customers. No charges or merchant discount rate shall be imposed on the customer and the merchant. RBI and banks will absorb the charges.

Union Budget 2019 highlights

Banking and SEBI

  • A Social Stock Exchange under SEBI has been proposed.
  • NBFCs bad loan tax norms to be brought at par with Banks.
  • Govt proposes to return the regulatory authority over the housing finance sector from the National Housing Board to the RBI.
  • The government has smoothly carried out consolidation, reducing the number of Public sector banks by 8.
  • Propose to levy TDS on cash withdrawal of more than Rs. One Crore in one year from a bank account.
  • New coins of Re 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired were released on 7th March 2019 and the coins will be made available for public use shortly.
  • For purchase of high-rated pooled assets of financially sound NBFCs amounting to a total of Rs 1 lakh crore, the government will provide a one-time six-month partial credit guarantee to PSBs for the first loss up to 10 percent.
  • The government will work with Sebi and RBI to enable stock exchanges to allow AA rates bonds as collaterals.

Do read: Union Budget 2019 Live Updates: FM concludes the budget presentation

Foreign direct investment

  • Govt will ask suggestions for further opening up of FDI in the aviation sector, media, animation AVGC and insurance sectors in consultation with all stakeholders. 100% FDI will be authorized for insurance intermediaries.


  • FM says that currently, the lower tax rate of 25% is applicable to firms with an annual turnover of Rs 250 crores. We propose to widen this to all companies with an annual turnover of up to Rs 400 crore. This will cover 99.3% of all companies.
  • To reduce labour disputes, multiple labour laws will be streamlined into four labour codes.

Individual Tax Payers

  • Interchangeability of PAN and Aadhar – It is proposed to make PAN and Aadhaar interchangeable. People who do not have PAN or Aadhaar can file their income tax returns by quoting either of the two.
  • People having an annual income of Rs 5 lakh are exempt from any paying taxes. 
  • The government proposes to enhance surcharge on individual income of Rs 2-5 crore and over Rs 5 crore by 3-7%.
  • The Government proposes to extend the period of exemption of capital gains arising from the sale of a residential house for investment in startups to 31-3-2021.
  • An additional deduction of Rs.1.5 Lakh for interest paid on loans borrowed up to 31 March 2020 has been proposed in the Budget 2019. The move shall translate into a benefit of Rs.7 Lakh over a loan period of 15 years for the middle-class homebuyers.
  • Income tax deduction of Rs 1.5 lakh on the interest paid on loans for EVs to be allowed.

Must read: What is union budget and how it is prepared?

Women development programs

  • The government reinforces to go beyond just women-centric policy to building women-led initiatives and movements.
  • Every verified woman SHG member having a Jan Dhan account, an overdraft of Rs 5000 will be allowed. One woman in every SHG shall also be made eligible for a loan of Rs One lakh under MUDRA scheme.
  • “Naari Tu Narayani”, the government believes that we can grow with better women participation. To further encourage women entrepreneurship, Women Self Help Group Interest Subvention Programme to be expanded to all districts in India.

Infrastructure development

  • With the changing economy, it is important to upgrade roads connecting villages to rural markets. For this Pradhan Mantri Gram Sadak Yojana Phase 3 is expected to upgrade 1, 25,000 km of road length over the next 5 years- Nirmala Sitaraman.
  • It is proposed to create agricultural infrastructure.

Do read: Skills you must have to succeed in the digital economy


  • The government is simplifying the GST process. Firms having revenue of less than 5 crores shall file only quarterly returns.
  • The government has also proposed to introduce an electronic invoice generation system. The details will be captured in the central system at the time of generating the invoice which will be used later.
  • The government is simplifying the GST return filing process and a single monthly return format is being rolled out. Firms having revenue of less than 5 crores shall file only the quarterly returns.
  • GST rates have been reduced significantly. Relief of about Rs.92000 Crores per year has been given.
  • Govt. has already moved the GST council to lower the GST rate in electric vehicles from 12 to 5%.  


  • Startups need to be encouraged and to resolve the so-called angel-tax issue, the funds raised by the startups who file declarations will not be subjected to any scrutiny.

Customs, Duties and Trading

  • Customs duty being exempted on certain parts of Electric Vehicles.
  • It has been proposed to increase special additional duty and road and infrastructure cess on diesel and petrol by Re 1.
  • It is proposed to increase excise duty on Gold and other precious metals from 10 to 12.5 percent.
  • To promote domestic books, 5 percent customs duty is being imposed on imported books.
  • For further incentivizing e-mobility, customs duty being exempted on certain parts of Electric Vehicles.
  • Exemptions to various kinds of papers are also being withdrawn.
  • Basic import duty is being increased on items such as Cashew-nut kernel, PVC, Tiles, Vinyl flooring, metal fittings, furniture mountings, certain types of synthetic rubbers, CCTV Cameras, Digital and video records, and some more items to protect domestic manufacturers.
  • To promote domestic books, 5 percent customs duty is being imposed on imported books.
  • It has been proposed to increase special additional duty and road and infrastructure cess on diesel and petrol by Re 1.

Must read: Ten most developed cities in India

Government Initiatives/Achievements

  • FM said that in the last five years, the Indian economy has added one trillion dollar due to various initiatives and reforms undertaken by the government. She also added that the Indian economy is poised to grow to be a three trillion-dollar economy in the current year.
  • The Government has planned to generate around Rs.1.05 Lakh Crores through disinvestment in the fy 19-20 and the disinvestment process of Air India will be reinitiated.
  • Over the last year, NPAs of commercial banks have been reduced by over Rs 1 lakh crore.
  • Over 80 lakh houses have been sanctioned under Pradhan Mantri Awas Yojna – Urban.
  • Under Pradhan Mantri Awas Yojana, over 81 Lakh houses with an investment of about Rs 4.83 Lakh Cr have been approved of which construction has started in about 47 Lakh houses.
  • External debt to GDP is less than 5%, which is the lowest globally.
  • FM says that due to the slew of efforts taken by the Modi government, the direct tax revenue has increased from Rs.6.8 Lakh Crores in 2013-14 to Rs. 11.37 Lakh crores in 2018-19.
  • In order to boost the economy, govt. has already moved the GST council to lower the GST rate in electric vehicles from 12 to 5%. Additional income tax deduction of Rs 1.5 lakh on the interest paid on loans for EVs to be allowed.
  • The fiscal deficit this year is 3.3%, brought down from 3.4 percent.
  • Since October 2, 2014, 9.6 crore toilets have been constructed and more than 5.6 lakh villages have become open excretion free. In the upcoming years, the Swachh Bharat mission will be expanded and the Government expects to make India defecation free by October, the 150th anniversary of Mahatma Gandhi.
  • 30000 km of roads were built with green technology under the PM Sadak Yojana.
  • 210 km long new metro lines have been operationalized in 2019.
  • The government has decided to open Indian embassies and high commissions where India does not have diplomatic missions yet. 18 new diplomatic missions in Africa have been approved.


  • To provide NRIs seamless access to Indian equities, the NRI portfolio investment route to be joined with the foreign portfolio investment route.
  • Government propose to consider issuing Aadhaar card to NRIs with Indian passport after their arrival in India without waiting for mandatory 180 days of wait.

Do read: Some of the top BJP Leaders


  • To popularize sports at all levels, it is proposed to set up the National Sports Education Board for the development of sportspersons under Khelo India.

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