The Union Finance Minister Nirmala Sitharaman presented her maiden Budget in the Parliament on Friday. The first reactions of the budget received major criticism as it failed to live up to the expectations of many.
– Lower income groups with an income below INR₹ 5 lakh would be exempted of paying tax. However, for the higher income groupS, the FM proposed a surcharge of 3 percent on individuals earning between INR₹ 2 crore and INR₹ 5 crore and surcharge will be 7 percent for individuals earning more than INR₹ 5 crore a year.
– The Government proposed to increase the excise duty and road cess on petrol and diesel by INR₹ 1 per litre each. The said hike would cascade to the end consumer eventually increasing costs and burden the common man.
– A 5 percent customs duty has been imposed on imported books.
– A TDS of 2 percent would be charged on for withdrawal of cash more than INR₹ 1 crore from one bank account. The move has brought in to discourage withdrawals of big amounts of cash and promote digital transactions.
– Customs duty on auto parts, optical fibres, digital camera, cashew, certain synthetic rubber, and vinyl flooring have been hiked.
– The customs duty on gold and precious metals has been hiked. Specifically for gold, taxation has been hiked from the current 10 percent to 12.5 percent.
– The government has announced income tax reduction of INR₹ 1.5 lakh for loans taken to purchase electric vehicles.
– Woman Self-Help Group (SHG) member with a Jan Dhan account to get an overdraft of INR₹ 5,000.
– Additional tax deduction of Rs 1.50 lakh on interest paid on home loans and electric vehicles taken up to March 2020.
– The government proposed to consider issuing Aadhaar cards to NRIs holding Indian passports in India without having to wait for 180 days.
– PAN and Aadhaar have been made interchangeable, allowing those who do not have PAN to file income tax returns.
Source : Various