From price hikes to tax sops: How Union Budget 2019 will impact you

While fuel and gold are set to get more expensive, the Budget proposes tax sops on affordable housing and electric vehicle loans

Union Finance Minister Nirmala Sitharaman on Friday presented her first Budget.

In the over 2 hour-long speech, there were several announcements that will directly impact most citizens. Here are the top such proposals from Budget 2019:

1. New tenancy law: FM Sitharaman, in her Budget speech, said government would undertake several reforms to promote rental housing. "Current rental laws are archaic as they do not address lessor-lessee relationships fairly," Sitharaman said.

2. Petrol, diesel to get costlier: Finance Minister Nirmala Sitharaman Friday raised cess on petrol and diesel by Re 1 per litre. The move will result in a hike in fuel prices.

“Crude prices have softened from their highs. This gives me a room to review excise duty and cess on petrol and diesel,” Finance Minister Nirmala Sitharaman said in her budget speech on Friday.

3. Gold to become more expensive: Custom duty on gold has been raised to 12.5 per cent. "It is also proposed to increase custom duty on gold and other precious metals from 10 per cent to 12.5 per cent," finance minister Sitharaman said during her Budget speech.

The announcement led to a sharp fall in  the stock prices of gems and jewellery companies on the Bombay Stock Exchange.

4. Additional Income Tax deduction on affordable home loans: The finance minister announced an additional Income Tax deduction of Rs 1.5 lakh on affordable home loans.

 "To provide further impetus to affordable housing, additional deduction of Rs 1.5 lakh will be given on interest paid on loans borrowed upto 31 March 2020 for purchase of house up to Rs 45 lakh," Nirmala Sitharaman said.

5. Rs 1.5 lakh income tax deduction on loans taken to buy EVs: Sitharaman announced that there will be an income tax deduction of Rs 1.5 lakh on loans taken to buy electric vehicles.

"Government has already moved GST council to lower the GST rate on electric vehicles (EV) from 12 per cent to 5 per cent. Also to make electronic vehicles affordable for consumers our government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs," announced Nirmala Sitharaman.

6. Super rich to pay more tax: Budget 2019 proposes to increase the surcharge for those earning Rs 2-5 crore  to 3 per cent and for those earnings above Rs 5 crore to 7 per cent. 

7. 2 per cent TDS on cash withdrawal of over Rs 1 crore: The finance minister has proposed to levy tax deduction at source (TDS) of 2 per cent on cash withdrawal of more than Rs 1 crore from a bank account in one financial year.

The decision has been taken to discourage business payments in cash.