Key Highlights of UNION BUDGET 2020

Key Highlights of UNION BUDGET 2020


The union budget 2020 was presented by the Finance Minister N. Sitharaman on 1st Feb 2020. Here are some key highlights of budget 2020 based on a speech by the Finance Minister N. Sitharaman.

Key Highlights of UNION BUDGET 2020 HIGHLIGHTS:

•    16 Lakhs new taxpayers added.

•    40 crore GST returns were filed.

•    This year’s union budget woven around three prominent things.

i)    Aspirational 

ii)    Economic

iii)    Humane

•    Central government’s debt down to 48.7% in March 2019 from 52.2% in March 2014.

•    16 point plan to boost the income of farmers. 

•    Push for solarisation in farms and promotion of the use of solar energy.

•    Setting up ‘Kisan Rail’ for quick transportation of products from the farms.

•    Raising fish production to 200 lakh tonnes.

•    Encouragement of balanced use of all fertilizers to change ‘incentive regime’ which encourages excess use of chemical fertilizers.

•    Schemes related to the improvement of environment like ‘Jal Jeevan Mission’ and ‘Swachh Bharat Mission’

•    3.6 lakh crore to be allocated for ‘Jal Jeevan Mission’

•    12,300 crore to be allocated for  for ‘Swachh Bharat Mission’

•    69,000 provided for the health sector

•    99,300 to be allocated for the education sector in 2020-21

•    3000 crore to be allocated for the skill development program

•    Introduction of ‘ind-SAT’ exam in Asian and African countries for promotion of Higher Education in India

•    Setting up of ‘National police university’ and ‘National forensic science university’

•    27,300 crore to be allotted for development and promotion of industry and commerce

•    Proposal to monetize 12lots of highway bundles of over 6000 km

•    Solar-powered capacity to be installed along rail tracks

•    100 more airports to be developed by 2024

•    20,000 crore to be allotted to the renewable energy sector

•    8,000 crore to be allotted for ‘National Mission of Quantum technology and application over the period of 5 years

•     1.7 lakh crore to be allocated for transport infrastructure in 2020-21

•    35,600 crore for nutrition-related programmes

•    85,000 crore for welfare of scheduled castes and other backward classes

•    53,700 crore for welfare of scheduled tribes

•    9000 crore to be allocated for the welfare of senior citizens

•    3150 crore to be allocated for the ministry of culture in 2020-21

•    A task force to be formed to recommend the marriageable age of women

•    4400 crore to be allocated for clean air

•    Setting up of National Recruitment Agency for conducting a computer-based entrance exam for recruitment to the non-gazetted post

•    100 crore to be allocated for the preparation of G20 summit

•    Insurance cover for a depositor to be raised to 5 lakhs from previous 1 lakh

•    Over 5 lakh MSME benefitted from debt restructuring

•    New schemes to be announced to provide subordinated debt to MSME’s

•    A non-resident can now invest in certain government securities

•    Government asks banks to extend restructuring MSME’s NPA for one more year

•    Government to sell part holding in LIC through IPO

•    GDP nominal growth estimated to be 10%

•    Fiscal deficit to be estimated at 3.8% by the government

•    Revised estimate(RE) expenditure of financial year 20 is at 26.99 lakh crore with a receipt at 19.32 lakh crore

•    New tax rates

1)    Up to 5 lakhs- no tax to be paid

2)    5 lakhs-7.5 lakhs - 10 %

3)    7.5 lakhs- 10 lakhs – 15%

4)    10 lakhs – 12.5 lakhs – 20%

5)    12.5 lakhs – 15 lakhs – 25%

6)    Above 15 lakhs – 30 %

•    The new income tax rates will be optional

•    40,000 crore per annum will be revenue foregone from new income tax rates for individuals

•    Dividend Distribution Tax shifted to individuals instead of companies

•    Govt proposes 100% tax concession to sovereign wealth funds on investment in infra projects

•    Concessional tax rate of 15% extended to power generation companies

•    The turnover threshold for audit raised to Rs 5 crore from Rs 1 crore to boost MSME’s

•    Affordable housing tax breaks extended by one year

•    The income of charitable institution to be exempted from paying tax

•    Donation made to charitable institutions to be tax-deductible

•    Tax on Cooperative societies proposed to be reduced to 22 percent plus surcharge and cess

•    FM proposes a scheme to bring down litigation indirect taxation scheme

•    Income Tax Act to be amended to allow faceless appeals against tax orders on lines of faceless assessment


eStartIndia Team

Leave a Comment

Previous Comments

Related Blogs