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Key tech related takeaways from Union Budget 2019-20

Photo of Nirmala Sitharaman

The Finance Minister Nirmala Sitharaman announced the first budget of the new government earlier this morning. Here are the key technology policy takeaways: Reiterate Vision for the Decade Listed 10 points of the Vision that were first presented in the interim budget 2019-20 in February 2019. The vision includes from a tech perspective: Digital India reaching every sector of the economy Make in India with particular emphasis on MSMEs, start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices Digital Payments/less cash economy 2% TDS will be imposed on cash withdrawal above ₹1 crore per year from one bank account w.e.f. September 1, 2019 Proposed that all businesses with annual turnover of more than ₹50 crore that offer digital modes of payment to their customers get MDR (Merchant Discount Rate) waiver; RBI and banks to absorb these costs from savings accrued from cashless transactions Businesses with annual turnover of more than ₹50 crore in the preceding year shall shall accept payments digitally w.e.f. November 1, 2019; failure to comply will lead to a proposed penalty of ₹5,000 for every day the failure continues Proposed amendments in the Payments and Settlements Act 2007 to provide that no bank shall impose any charges for using electronic payment modes, w.e.f. November 1, 2019 Amendments to Section 269SS, 269ST, and 269T of the Income Tax Act to include electronic modes of payment as may be prescribed, w.e.f. September 1, 2019 Amendments to Section 13A, 35AD, 40A, 43CA, 44AD, and 80JJAA of the Income…

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