Fiscal Deficit Falls to 3.4%

Source: Union Budget

Inflation at Lowest Levels

Source: Economic Survey 2017-18

India Rises in GDP Rankings Exponentially

Source 1: IBEF
Source 2: Knoema

US $10 trillion Economy in the Next Decade

Source 1: International Monetary Fund
Source 2: World Bank

Key Economic Indicators

  • Gross domestic product (GDP) growth rate is estimated at 7.2% in 2018-19
  • India ranks 77th on World Bank’s Ease of Doing Business 2019 Report
  • Foreign Direct Investment (FDI) in last 5 years crossed US $239 billion

Highlights – Policy

  • Defence budget will surpass Rs. 300,000 crores (US $42.19 billion) for the first time in 2019-20
  • The Department of Industrial Policy and Promotion (DIPP) will be renamed as the Department for Promotion of Industries and Internal Trade
  • Over 90% of goods and services tax (GST) payers will be allowed to file quarterly returns

Highlights – Taxation

Individual

  • No change in tax rates
  • No tax for individuals having Total Income upto Rs. 5 lakhs (US $6,990)
  • Increase in standard deduction from Rs. 40,000 (US $560) to Rs. 50,000 (US $700)
  • Benefit of nil tax extended to second self-occupied property
  • The total interest on housing loan deduction for both houses considered as self-occupied capped at Rs. 2 lakhs (US $2,805)
  • Capital Gain exemption can now be claimed on re-investment in 2 residential houses, subject to conditions

Others

  • No change in Corporate tax rates
  • Benefit of nil tax in case of unsold inventory of real estate developers extended to 2 years
  • Deduction of profits from affordable housing project extended for 1 more year
  • Increase in TDS threshold limit on certain interest income from Rs. 10,000 (US $140) to Rs. 40,000 (US $560)
  • Increase in TDS threshold limit on rental income from Rs. 1.8 lakhs (US $2,517) to Rs. 2.4 lakhs (US $3,356)
  • Soon ITRs will be processed in 24 hours of filing with simultaneous issue of refund
  • In next 2 years all tax assessments to be done electronically
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