Budget 2019

The Budget 2019-20 tabled in Parliament on July 5, permitted foreign companies to own up to 100 per cent in insurance intermediaries. (iStock)
The Budget 2019-20 tabled in Parliament on July 5, permitted foreign companies to own up to 100 per cent in insurance intermediaries. (iStock)

Relaxing FDI limit in insurance intermediaries to boost distribution: Fitch

  • The Budget 2019-20 tabled in Parliament on July 5, permitted foreign companies to own up to 100 per cent in insurance intermediaries
  • The proposed change is only applicable to insurance intermediaries while the cap on foreign ownership in insurance companies will remain at 49%

Finance minister Nirmala Sitharaman. (ANI)
Finance minister Nirmala Sitharaman (HT file)
Budget documents show that the Union government expects to raise public sector employment significantly over the course of the fiscal year (Photo: Reuters)
Nirmala Sitharaman sought to allay fears of firms and investors who have increasingly complained of ‘tax terrorism’ in recent years. (ANI)
Nirmala Sitharaman sought to allay fears of firms and investors who have increasingly complained of ‘tax terrorism’ in recent years. (ANI)

The government’s budget math faces a tax challenge

Inadequate GST tax revenue might push the government to aggressively target more tax from corporates, in a repeat of what happened in 2018-19

Finance minister Nirmala Sitharaman (HT file)
Finance minister Nirmala Sitharaman (HT file)

No reason to clarify higher tax on FPIs, says Sitharaman

  • FM Nirmala Sitharaman had proposed in her FY20 budget an increase in surcharge from 15% to 25% on the income tax outgo of taxpayers with income in the 2-5 crore range
  • The surcharge has been increased from 15% to 37% in the case of those earning more than 5 crore

 (AFP file)
Finance minister Nirmala Sitharaman presenting the Union Budget 2019-20 in the Lok Sabha, in New Delhi on Friday.  (PTI)
Finance minister Nirmala Sitharaman presenting the Union Budget 2019-20 in the Lok Sabha, in New Delhi on Friday. (PTI)

Budget 2019: What is India's biggest revenue source

  • Finance Minister Nirmala Sitharaman kept total borrowing plan unchanged at 7.1 trillion rupees
  • The budget didn’t contain any major proposals to boost spending

Finance minister Nirmala Sitharaman with minister of state for finance Anurag Thakur and her team of finance ministry officials in New Delhi (Photo: Pradeep Gaur/Mint)
Finance minister Nirmala Sitharaman with MoS finance Anurag Thakur and other ministry officials. Ramesh Pathania/Mint
The revenue from surcharge on super-rich individuals jumped from  ₹738 crore in FY14 to an estimated  ₹39,618 crore in FY20.
The revenue from surcharge on super-rich individuals jumped from 738 crore in FY14 to an estimated 39,618 crore in FY20.

Higher taxes on the rich, but low returns for the Union government

  • The govt expects the additional revenue from the increased surcharge on individuals at just 2,724 crore
  • On Friday, finance minister Nirmala Sitharaman proposed to raise the surcharge on individuals earning 2-5 crore a year to 25%

The EV sector has been given extensive sops in the budget (Photo: Pradeep Gaur/Mint)
The EV sector has been given extensive sops in the budget (Photo: Pradeep Gaur/Mint)

India looks to lead electric vehicle race with latest push in budget

  • The finance minister announced tax rebates of up to 1.5 lakh on interest paid on loans to buy EVs
  • India, though, like China or countries in the EU, has not set a target for automakers to convert a certain part of their total vehicle production to electric or other electrified offerings

Finance Minister Nirmala Sitharaman presents the Union Budget 2019-20 in the Lok Sabha at Parliament, in New Delhi, Friday. (PTI )
The top BSE 500 companies would need to sell shares worth  ₹3.17 trillion to meet the proposed public float norm (Photo: Abhijit Bhatlekar/Mint)
A higher tax exemption could have increased take-home salary, which would have meant more spending capacity and also higher saving potential, say taxpayers. (Photo: Pradeep Gaur/Mint)
A higher tax exemption could have increased take-home salary, which would have meant more spending capacity and also higher saving potential, say taxpayers. (Photo: Pradeep Gaur/Mint)

Income tax burden weighs on the salaried class even as costs climb

  • No hike in exemption limits and the government’s proposal for additional cess on fuel will pinch the salaried
  • Budget 2019 has left income tax slabs unchanged, to the disappointment of the salaried class

FM Sitharaman has expanded the scope of income reporting, tax deduction at source (Photo: Reuters)
Revenue secretary Ajay Bhushan Pandey  (Mint file)
Budget 2019 has set a higher target of  ₹1.05 lakh crore from disinvestment for the current fiscal year, compared with  ₹90,000 crore in the Interim Budget (Mint file)
Budget 2019 has set a higher target of 1.05 lakh crore from disinvestment for the current fiscal year, compared with 90,000 crore in the Interim Budget (Mint file)

Govt expects 5,000 cr from monetising CPSE assets this fiscal: DIPAM secy

  • Budget 2019 has raised the target for divestment proceeds to a record 1.05 lakh crore this fiscal year
  • The Centre will follow a four-pronged strategy, including minority stake sales via IPO, FPO and ETFs, apart from strategic divestment and asset monetisation, to meet the disinvestment target

Startups have flagged their grievances regarding angel tax provision, which they considered was not friendly to them. (iStock)
Startups have flagged their grievances regarding angel tax provision, which they considered was not friendly to them. (iStock)

Forget about taxman, focus on business: CBDT to startups

  • All 'legacy issues' related to startups will be resolved through a consultative process and under the supervision of senior officers of the tax authority
  • In her budget speech on Friday, finance minister Nirmala Sitharaman proposed a number of measures to resolve the problems faced by start-ups

Finance minister Nirmala Sitharaman and CEA Krishnamurthy Subramanian before the presentation of the Union Budget in Parliament, in New Delhi on Friday (Reuters)