[cajobportal Insights] Union Budget 2019 – Key Takeaways

A few mounds of rice could be sufficient for an elephant, but if an elephant has to trample in the field and destroy far more. With that view,Nirmala Sitharaman, India’s first full-time female finance minister,presented the tax proposals
Happily,  the tax collection has increased  from Rs 6.37 lakh crore in 2013-14 to Rs 11.37 lakh crore in 2018-19
Our top bosses, in the 2-5 crores and 5+ crores income brackets, would be seething, their effective tax rates goes up to 38% and 42%. How will the fury pass on to the lower cadre remains to be seen 🙂
 Only 0.7% of Indian companies , i.e.those with annual turnover > INR 400 crores, would now pay corporate taxes @ 30%. The rest 99.3% of Indian companies will be in the 25% bracket. This limit was earlier INR 250 cr. Leaves room for enhanced kitty for employees and shareholders 🙂
No taxes for income upto 5 lacs – something that was already announced in the Interim Budget
Additional income tax deduction u/s 80EEA and 80EEB
a) Rs 1.5 lakh on interest paid on loans for electric vehicles
b) Rs 1.5 lakh deduction on interest paid for affordable housing loans till March 2020
  80CCD(2) will now allow tax free contribution by employees of 14% instead of just 10% earlier
There is a Buyback Tax of 20% for listed companies 🙁
TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account would mean that , as a corporate, you will necessarily have to move towards digital payments ( unless you are ok with the working capital blockage)
On the procedural front, we are likely to get pre-filled return, with your Income from Mutual Funds, Share Transactions and FD Interest already collected . You just need to verify the details and submit the form. Leaves little room for taxpayers wanting to escape taxation on Mutual Funds and Share Transactions – FD Interest was anyways coming in your Form 26AS
Faceless income tax assessment in electronic mode involving no human interface will be launched this year in a phased manner is aimed to reduce taxpayer harassment.
Section 80JJAA of the Income-tax Act relating to deduction in respect of employment of new employees, now will provide for additional electronic modes of payment for qualifying for  deduction of 30% of additional employee cost.Earlier it was just account payee cheque or an account payee bank draft or by use of electronic clearing system
On the Indirect Tax front, you have costlier HSD and Petrol – impacts transportation cost for the economy as a whole
The ones craving for gold will have to shell out more.
HRs will also eagerly await how the government will club 44 labour laws into 4 codes
We also await whether the Mega Manufacturing Hubs will impact job creation, as SEZs really didnt have much of an impact in the past. Same for the scheme for settlement f INR 3.75 lac crores of litigation in Service Tax and Excise
Overall, it was a budget speech bereft of any major surprises but is directionally positive to help us reach the $5 trillion target for the economy