ITR without PAN to interest subvention for GST — key takeaways for banking and finance from Budget 2019

Budget 2019: Banking and finance sector has welcomed the Nirmala Sitharaman Bahikhata proposals citing it would lay down a vision for the next five years while staying rightly focussed on completion of the already initiated policy changes. They also say that the budget 2019 signals the government’s commitment towards fiscal consolidation. Changes in Angel Tax, ITR filing without PAN Card etc. are some steps that would make financial inclusion easier for them.

Commenting on the budget 2019 proposals Zarin Daruwala, CEO, India, Standard Chartered Bank said, “The Budget lays down a vision for the next five years while staying rightly focussed on completion of the already initiated policy changes. It also signals the government’s commitment to fiscal consolidation. The steps to shore up the financial sector via PSU bank recapitalization, partial credit support to financially sound NBFCs and change in regulator for HFCs are key positives, in my view. The measures to serve the interest of various sectors - MSMEs, affordable housing and underprivileged segments like retail traders - are much needed and welcome. The announcements like further liberalization of the foreign investment regime, issuance of sovereign Dollar bonds, deepening of long-term bond markets, rationalization of labor laws, focus on infrastructure investment are steps in the right direction. On balance, the Budget would help boost the medium-term growth potential of the economy.”

Talking about the key takeaways from the budget for banking and financial sector Ravi Vishvanathan, Director, PayMate listed out the following positives:

1] We welcome the changes in Angel Tax and assurance of income tax assessment without scrutiny;

2] Filing of Income Tax Returns without a PAN, using the Aadhar Card is welcome;

3] Interest subvention for GST registered MSME on fresh or incremental loans is welcome;

4] Business payments in cash attracting 2% TDS on cash withdrawal from bank account exceeding Rs 1 crore in a year will be a big boost for digital payments; 

5] Television Channel for Start-ups, if implemented properly will provide a good platform for start-ups to air their views, market their products/services etc; and

6] Allowing FIIs & FPIs to invest in debt securities issued by NBFCs is welcome and may help in providing much-required liquidity to the NBFC sector.

Tags: Budget 2019, Nirmala Sitharaman, Income Tax, Aadhaar Card

Keywords: Budget 2019, Nirmala Sitharaman, Income Tax using Aadhaar, Budget 2019 ITR, ITR without PAN card, Budget proposals for banking and finance, banking and finance on budget