Union Budget 2019-20

 
Budget Highlights

• Expenditure: the govt. proposes to pay Rs twenty seven,86,349 large integer in 2019-20, that is thirteen.4% higher than the revised estimate of 2018-19.
• Receipts: The receipts (other than web borrowings) ar expected to extend by fourteen.2% to Rs twenty,82,589 crore, because of higher calculable revenue from corporation tax and dividends.
• GDP growth: the govt. has assumed a nominal gross domestic product rate of growth of 12-tone system (i.e., real growth and inflation) in 2019-20. The nominal growth estimate for 2018-19 was eleven.5%.
• Deficits: Revenue deficit is targeted at two.3% of GDP, that is more than the revised estimate of two.2% in 2018-19. commercial enterprise deficit is targeted at three.3% of GDP, less than the revised estimate of three.4% in 2018-19. Note that the govt. is calculable to breach its budgeted target for commercial enterprise deficit (3.3%) in 2018-19 and also the medium term commercial enterprise target of three.1% in 2019-20.
• Ministry allocations: Among the highest thirteen ministries with the best allocations, the best share increase is determined within the Ministry of Agriculture and Farmers’ Welfare (82.9%), followed by Ministry of rock oil and gas (32.1%) and Ministry of Railways (23.4%).

Tax proposals within the Finance Bill
In addition to changes in tax laws, the Finance Bill, 2019 proposes changes in many alternative laws like the SEBI Act, The run batted in Act, the CGST Act, and also the PMLA Act. These ar elaborate on Page nine.

• Surcharge on financial gain tax: presently, a surcharge of V-day is levied on the financial gain of people earning over one large integer rupees, and 100 percent on financial gain of people earning between Rs fifty hundred thousand and one large integer rupees. within the Union Budget 2019-20, the surcharge on tax for people earning between 2 large integer rupees and 5 large integer rupees has been increased to twenty fifth and for persons earning over 5 large integer rupees has been increased to thirty seventh.
• Corporation tax: presently, firms with annual turnover of but Rs 250 large integer pay company tax at the speed of twenty fifth. This threshold has been increased to Rs four hundred large integer.
• Tax on money withdrawals: A TDS of twenty-two are levied by money firms and post offices on people for money withdrawals extraordinary one large integer rupees in an exceedingly year from a checking account.
• Tax exemption for reasonable housing: a further write-down of up to Rs one,50,000 are provided on interest paid on loans for self-occupied householders. The conditions for availing this deduction are: (i) the loan should be sanctioned in FY 2019-20, (ii) the taxation on the house shouldn't exceed Rs forty five hundred thousand rupees, and (iii) the individual shouldn't own another residential house property as of the date of the house loan.
• Tax exemptions for electrical vehicles: A write-down of up to Rs one,50,000 are provided on interest paid on loans to buy an electrical vehicle. This deduction are applicable for loans sanctioned between FY 2019-20 and FY 2022-23.
• Road and infrastructure cess: The Road and Infrastructure Cess on hydrocarbon and high-speed diesel has been increased by one rupee per cubic decimeter. Excise duty has additionally been increased by one rupee per cubic decimeter for these product.
• Customs duty: The custom on gold and precious metals are increased from 100 percent to twelve.5%.

Policy Highlights

• Banking and Finance: the govt. plans to partly guarantee (for 1st 100 percent of loss) Public Sector Banks for funds provided in an exceedingly pooled manner to NBFCs. Further, Rs 70,000 large integer are provided for recapitalisation of Public Sector Banks.
• Government borrowings: presently, the gross borrowing programme of the govt. is funded entirely through domestic borrowings. the govt. plans to lift a neighborhood of its borrowings abroad in foreign currency.
• Infrastructure: The central government can invest Rs one hundred hundred thousand large integer in infrastructure over consecutive 5 years. phase II clinical trial of the Bharatmala project are launched beneath that state highways are developed. Public personal partnerships are leveraged for railways to draw in associate investment of Rs fifty hundred thousand large integer throughout the amount 2018-30. A blue print are created for developing gas-grids, water-grids, i-ways (communication networks) and regional airports on the lines of the One Nation–One Grid for power. Structural reforms within the power sector (including tariff) are proclaimed.
• Industry: The minimum public belongings in listed firms are increased from twenty fifth to thirty fifth. a brand new electronic fund raising platform are created for listing social enterprises and voluntary organisations. this policy of fifty one stake of presidency in non-financial PSUs are changed to incorporate stake of presidency controlled establishments.
• Investments: 100 percent Foreign Direct Investment (FDI) are allowable for insurance intermediaries. native sourcing norms are mitigated for FDI within the single whole retail sector. Further, reposeful of the FDI norms in aviation, media and insurance sectors are examined. Statutory limit for Foreign Portfolio Investment are increased from this pure gold to sectoral limits. Foreign belongings limits in PSUs are increased to the utmost permissible sectoral limit.
• Agriculture and allied activities: Pradhan Mantri Matsya Sampada Yojana has been projected to deal with infrastructure gaps within the fisheries sector. 10,000 new Farmer Producer Organisations are setup over consecutive 5 years. The central government can work towards adoption of zero-budget farming.
• Rural Development: beneath the Pradhan Mantri Gram Sadak Yojana, 1.25 hundred thousand klick of road are upgraded at associate calculable price of Rs eighty,250 large integer within the next 5 years. one hundred new clusters are setup beneath the theme of Fund for Upgradation and Regeneration of ancient Industries (SFURTI). All rural households are given piped water by 2024 beneath the Jal Jeevan Mission. Swachh Asian country Mission are enlarged to undertake solid waste management in each village.
• Social Justice: associate draft of Rs five,000 are provided to ladies assistance cluster (SHG) members World Health Organization hold Jan-Dhan accounts. Further, a loan up to 1 hundred thousand rupees are provided beneath the gesture theme to 1 girl in each SHG.
• Social Security: a brand new pension profit theme, particularly Pradhan Mantri Karam Yogi Maandhan theme, has been proclaimed for traders and tiny shopkeepers with annual turnover of but Rs one.5 crore.
• Education: The new National Education Policy are introduced. The National analysis Foundation are setup to push funding and coordinate analysis within the country. A Study in India programme are launched to encourage foreign students in pedagogy.
• Legislative Framework: to push rental housing, a model abidance law are finalised and circulated. the upper Education Commission of India Bill are introduced. completely different multiple labour laws are efficient into a group of 4 labour codes.

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Establishing a unit in SEZ in India

 

India is among the foremost Asian countries United Nations agency have thought-about the concept of putting in place AN Export process Zone (EPZ) model to push country’s exports. to draw in additional foreign investment and supply AN internationally competitive and trouble free surroundings for export promotion in Asian nation, Special Economic Zone (SEZ) was introduced. within the year 2000, with AN beginning of SEZ policy, Asian nation had begun to run on the trail of success.

Initially, the SEZ policy was enclosed beneath foreign foreign policy 2000. The policy was enforced through piecemeal and circumstantial amendments to totally different laws, besides government orders. so as to beat these drawbacks and to allow a stable long run policy framework with minimum regulation, the Special Economic Zone Act, 2005 was introduced. The Act provided broad legal framework, covering all vital legal and restrictive aspects of SEZ development further as for units in operation in SEZs.

SEZ may be a specific exempt district and shall be deemed to be foreign territory for the needs of trade operations and duties and tariffs. In different word, SEZ may be a nation-state that has economic laws totally different from the country’s economic laws. SEZs are established in many countries, as well as China, India, Jordan, Poland, Kazakhstan, Philippines and Russia.

Main objectives of building a SEZ

• Generating further economic activity
• Promoting exports of products and services
• Promoting investments from domestic and foreign sources
• Creation of employment opportunities
• Development of infrastructure facilities
• Exposure to technology and world market

Benefits and incentives of putting in place a business unit in an exceedingly SEZ

• Tax edges (tax holidays, taxation exemptions, etc.)
• Liberal labor rules
• Exemption from excise and impost on procural of capital assets, expendable stores, raw-materials from domestic market
• Streamlined procedures for obtaining approvals (online / single window)
• Liberal approach in foreign direct investments
• Increased capital account fungibility
• Relaxed export regulation
• Full return of profits
• Non-applicability of connected environmental laws

Setting up a unit in SEZ

A company aiming to setup unit in an exceedingly specific SEZ must apply with the various Development Commissioner’s (DC) workplace of SEZ zone. To file AN application, company must fill the Form-F, stipulated by SEZ rules. The candidates filing the shape, must submit this manner on-line through SEZ on-line system victimization module New Unit Application (NUA).

The steps for NUA area unit as summarized below:

1. making user ID: this can be the initial stage for putting in place a SEZ unit. For putting in place a replacement unit in SEZ, the user, for the aim of registration, shall login to SEZ on-line system and build a replacement user ID.

2. Raising NUA request: when registration, users area unit needed to fill a “new user application” providing the required details which incorporates general details of company, details of administrators, item / product, during which the corporate deals in, and different details like investments, equity, for-ex, soul and selling collaborations of the corporate.

3. Submitting Form- F and different documents: more during this procedure, candidates got to transfer the below listed documents with a crammed kind – F, as mentioned in “Add Documents” field. These noncommissioned documents have to be compelled to be submitted physically in DC’s office:

• Copy of incorporation certificate, Articles and memoranda of Association of the corporate
• Demand draft of authority 5000/- in favor of “The Pay & Accounts Officer.
• Copy of company’s profile, directors’ profile and project report
• Copy of board resolution
• List of foreign and autochthonal capital product
• Form eighteen and thirty two filed with mythical monster
• Copy of residential proof and identity proof of administrators
• Income tax returns of last three years
• Copy of audited financials
• Copy of IEC of the corporate
• Copy of PAN of the corporate
• Copy of term sheet for incubation premises
• Copy of term sheet for main premises
• Letter for selling / redemption arrange
• List of administrators with their details
• Letter mentioning web site and e-mail address
• Undertaking for pollution management
• Affidavit

Along with these documents, soul must submit kind – F containing the main points of NUA.

4. Rectification of deficiencies: If the DC doesn't get glad with the submitted documents, he might raise a requirement for extra documents. In case, the request is shipped back by DC workplace and also the demand is raised from DC workplace, soul shall submit the documents at intervals the stipulated

5. Approval of request: when verification of all the documents submitted and different needs consummated by soul, DC is allowed to approve the request of NUA. more the approval, AN e-mail are going to be sent to soul on the registered e-mail describing the supplementary

6. Payment of registration fee: when approval from DC workplace, a link for payment of registration fee are going to be enabled; enquiring some details for payment. On payment of fee, NSDL direction Ltd. (NDML) representative can verify receipt of payment and can authorize the payment upon verification of valid payment entry in SEZ on-line system. Upon authorization of payment, soul will produce administrator and operational users IDs.

7. Submission of lease deed details to DC’s workplace for approval: when acceptance of letter of approval, the unit is predicted to enter into a lease agreement with the developer of the SEZ during which it's commencing business. when getting in the agreement, the unit can have to be compelled to enter the lease deed details within the SEZ on-line system and submit it on-line to the DC’s workplace. The unit shall even have to submit a duplicate of the lease deed to the DC’s workplace in physical kind.

8. Intimation of date of commencement: As before long because the unit commences production, the date of commencement of production has got to be intimated to the DC’s workplace. The unit shall on-line intimate the date of incorporation through SEZ system. additionally, the DC may additionally need the unit to submit supporting documents in physical kind.

For the Fact: As of March 2018, 223 SEZs area unit operative and a huge 419 SEZs are approved.

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