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

Author:

eStartIndia Team