There are plenty of things in the budget for the naysayers, critics and also for the cheerleaders. On balance, the Budget was pretty decent, given that it was being delivered by a first time Finance Minister, who barely had 42 days to complete the process. Here are a few quick things that were good in the Union Budget.
Consolidation of fiscal deficit
The consolidation of the fiscal deficit was an excellent move. The government has always focused on this over the years. The same has been reduced from 3.4 per cent of GDP to 3.3 per cent for 2019-20.
Reduction in corporate tax
The move to reduce corporate tax to Rs 25 percent for companies with turnover of up to Rs 400 crore is positive but falls short of higher expectation.
Liquidity in the NBFC
The NBFC sector was in desperate need of liquidity. The government has proposed banks to buy high-rated pooled assets of financially sound NBFCs, amounting to Rs 1 lakh crore for FY20.
Additional benefits on affordable housing home loans
The budget 2019-20 has offered an additional Rs 1.50 lakh deduction for interest on home loans taken up to 31 March 2020. This is in addition to the current tax benefits of Rs 2.5 lakhs per year. However, one would need to study the more finer details.
TDS on cash withdrawals of Rs 1 crores a year
There would be a TDS of Rs 1 crores that would be applicable on cash withdrawal of Rs 1 crores a year. Tax benefits on loan for electrical vehicles There would be a tax benefit on loans taken for electrical vehicles, where interest to the tune of Rs 1.5 lakhs has been paid during the financial year. This would be a good move to enable and push clean sources of fuel.
Corporate tax benefits
Corporates with an annual turnover of Rs 400 crores and below would pay a reduced corporate tax of 25 per cent.
Benefits for NRIs
To provide NRIs seamless investment to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route. Apart from this they will also be issued Aadhar Cards, even if they are 180 days outside India.