Major Economic Reforms undertaken by Arun Jaitley
Abhishek Kumar / 2020-01-30 05:46:18Arun Jaitley, energetic minister of finance and corporate affairs widely
known for his political career passed away on 24th August 2019. He was a MP of BJP who worked hard
for India’s betterment during the first term of the BJP government.
In 5 years as minister of finance and corporate affairs, he always took
powerful decisions for the growth of the economy. India achieved 77th rank
among the world's 190 Nations for ease of doing business during his tenure. He
boosted India's economy which helped India to become 3 trillion dollar economy
and is expected to reach 5 trillion dollars in 5 years
Some major economic reforms introduced in Arun Jaitley's tenure:
1- GST
GST has been proved to be one of the greatest economic reforms of all
time. It has bought ease to tax payment for millions in our country. Following
are the changes made through GST:
- In India, every business is now bound to file
their tax returns and get GST Registration Online. This
regulation has created a great impact on businesses. The strict rules and
heavy fines made this reform successful.
- Trade and commerce have become much easier
after GST.
- This has increased the rate of businesses in
India.
2-Udyog Aadhaar (MSME
Registration)
A 12 digit UIN (unique identification number) assigned by the Ministry
of MSME (Micro, Small, Medium, Enterprise) to all MSME enterprises for
registration is called Udyog Aadhaar. This linking of aadhar number to MSME
registration created the idea for Udyog Aadhar Registration in 2015.
Udyog Aadhaar Certificate can provide with various benefits:
- Business
loan
-ISO
CERTIFICATION government fees will be reimbursed.
-Government
fees on Barcode will be reimbursed.
After this reform, the businessman is not required to go through a
lengthy process to get their registration done. They can instead provide these
documents and get their MSME registration done:
1. Aadhar number
2. Business name
3. Nature of business
4. Owner's name
5. Bank account details
3.) Jan Dhan Yojna
This reform was done and citizens of India have a bank account. It was
one of the most successful reforms during Arun Jaitley's tenure. Currently,
more than 35.4 crore bank account under Jan Dhan yojana has been opened.
4.) No
income tax for those having Income up to ?5 lacs
During Budget 2019, Arun Jaitley introduced Zero Income tax on income
tax up to 5 lacs which was previously 3 lacs. This reform gave relaxation to
the small businessman and helped them skip heavy taxes. The government also
increased the rebate from a limit of Rs. 2500 to a limit of Rs. 12500. This
advanced will be given to the taxpayer having an annual turnover of up to 5
lacs.
5.) Reduction
of GST on Real Estate
GST is tremendously reduced on real estate in the view of planning
“housing for all by 2022” in the 34th council meeting. This gave a boost to the
sale of real estate. The rates changes as follows:
|
Type of real estate
|
GST slashes from
|
|
Under construction
|
12% to 5%
|
|
Affordable houses
|
8% to 1%
|
6.) Banning
of Unregulated Deposit Schemes
Banning of unregulated deposit was introduced by the Lok Sabha on 31st
July 2019 to protect people from getting cheated by the fraud financial schemes
such as Sharda chit fund in Bengal.
7.)
Demonetization
This reform was the biggest reform in decades done to reduce corruption,
Terror-funding, fake currency, and black money. Demonetization was about
banning 500 and 1000 rupees notes and brings in new notes to the economy in
2016. This came as a huge thud because it was informed in the evening that the
notes will be meaningless after midnight. Over time this promoted digital India
and made payment much easier by promoting online transactions.
