Budget 2019: From affordable housing, tax to electric vehicles, check out top points that will impact you

Budget 2019: Finance Minister Nirmala Sitharaman in Lok Sabha today presented the budget today in Parliament. Finance Minister announced various changes in direct taxes, corporate taxes, loan plans for electric vehicles,  reduction in GST rates for electric vehicles, surcharges on higher income, E-assessment, Pre-filing of Income Tax Return (ITR), low interest for affordable housing and much more. 

Here are a few snippets from the direct tax perspective, according to Tarun Garg, manager, DHS:

- Government to focus on ease of administration and collecting taxes

- Direct taxes have significantly increased over past couple of years by 78% INR 6.38 lakh crores to INR 11.37 lakhs crore between 2013-14 to 2018-19. The direct tax revenue has grown by double digit

- Corporate tax – Govt. to continue with a phased reduction in rate

- On electric vehicles - aim to leap frog into a global hub of manufacturing electric vehicles inclusive solar storage batteries. GST Council to lower the GST rates from 12 to 5%

- In order to make electric vehicles affordable to consumer, additional income tax deduction of INR 1.5 lakhs deduction on loans taken to purchase electric vehicles;

- To encourage start-up growth in India, investors who file requisite declaration will not be subject to any scrutiny on valuation of share premium.

- Additional deduction of INR 1.5 lakh available for interest on loans availed before 31 March 2020 in respect of affordable housing of upto INR 45 Lakhs

- Pre-filling of income tax returns to be provided - reduce time taken to file tax returns, better reporting

- E-assessments – central cell to be single point of contact, cases selected for scrutiny in a random manner, without disclosing the name and designation of the officer

- Surcharge has been increased for highest income brackets - proposed to enhance surcharge in the income category of INR 2 cr. to INR 5 crore and INR 5 crore and above. Effective increase in surcharge would be 3% and 7% respectively.