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Budget 2019

BUDGET 2019: Yay or Nay?

1. NRIs with Indian passports to get Aadhar card on arrival

2. Interchangeability of PAN and Aadhar card in filing of I-T returns

3. Gifts of any kind – namely shares, property, vouchers, cash etc exceeding Rs 50,000 made to anyone apart from the specified relatives or blood relations would be taxed in the hands of the NRI, except if a double taxation treaty prohibits the same. The specified relatives list in terms of Section 56 is fairly wide as compared to the normal list of specified relatives for other provisions. It includes, brother’s sister, spouse of the brother or sister. But acquaintances, friends, very close family relations would come in the purview. It remains to be seen whether charitable trusts would be covered

4. Transfer of a capital assets such as rupee-denominated Bonds of Indian companies, derivatives, global depository receipt (GDR), bonds, made by NRIs through recognised stock, where the amount is paid in foreign currency would not be regarded as transfer

5. A capital asset transfer by Category III Alternative Investment Fund in IFSC, where all the unit holders are NRIs, would not be regarded as transfer, subject to specific conditions

6. With effect from April 2020, income by way of interest payable to NRIs after September 1, 2019 by a unit located in IFSC on external borrowings have been proposed to be exempt

7. Mutual funds have been offered an income tax waiver on the amount distributed on or after the 1st day of September, 2019, by a Mutual Fund, whose unit holders are non-residents alone

8. Interest earned on rupee-denominated bonds, taken between September 17, 2018 and March 31, 2019 has been exempt from income tax

9. Due to the consolidation of investment provisions between NRI and FPI, NRIs participation in floating stocks would increase. With the 24% restriction they were not able to purchase. A clarification that is needed on the issue is whether the Rs 2,50,000-limit of FEMA for remitting money outside India sees any change

10. Startups are being given a whole set of tax benefits

11. Four new embassies to be opened in 2019–20, to improve India's overseas presence and to provide better public services to local Indian communities

12. To further encourage women entrepreneurship, Women Self Help Group (SHG) Interest Subvention Programme to be expanded throughout India

13. New National Educational Policy to be brought in to transform Indian educational system; major changes in higher as well as school system to be brought in

14. India has emerged as a major space power. To harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap the benefits of ISRO

15. It is the right time to consider increasing minimum public shareholding in the listed companies, market regulator SEBI to consider raising the current threshold of 25–35%

16. Income tax surcharge for HNIs earnings more than Rs 2 crore a year hiked

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