Budget 2020 Highlights India: Finance Minister Nirmala Sitharaman presented Union Budget 2020 in the Parliament today. Sitharaman’s Budget speech had several important announcements. At the start of her speech, Sitharaman paid homage to late Finance Minister Arun Jaitley. “GST resulted in Rs 1 lakh crore gains to consumers, removed inspector raj and helped transport sector,” said the FM. Talking about employment, Sitharaman said, “Our people should be gainfully employed, our businesses should be healthy; for all minorities, women and people from SCs and STs, this Budget aims to fulfil their aspirations.” The Finance Minister said that Budget 2020 is for boosting income and purchasing power of people. Sitharaman further said that Modi govt is committed to doubling farmers’ income by 2022. She listed out initiatives taken by the Centre for farmers in the last few years, including PM Kisan.
Income Tax Calculation Budget 2020: Finance Minister Nirmala Sitharaman today said that a person earning Rs 15 lakh per anum and not availing any deductions will pay Rs 1.95 lakh tax now. Sitharaman proposed 20 per cent tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh, 25 per cent for income between Rs 12.5 lakh and 15 lakh, 30 per cent for above Rs 15 lakh income under new slab. For income between Rs 7.5 lakh and Rs 10 lakh per annum, tax rate has proposed to be reduced to 15 per cent from 20 per cent.
New Income Tax Slab 2020: Modi govt proposes personal income tax overhaul -Check details
– Modi Government has proposed 100 percent tax concession to sovereign wealth funds on investment in infra projects.
– Concessional tax rate of 15 pc extended to power generation companies.
– Dividend Distribution Tax shifted to individuals instead of companies
– FM says have removed 70 exemptions, deductions with a view to further simplify tax regime. Rs 40,000 cr per annum will be revenue foregone from new income tax rates for individuals.
– Those earning upto Rs 5 lakh in a year will pay no tax.
– Government has proposed 10 per cent tax for income between Rs 5 lakh and Rs 7.5 lakh per anum for those who forego deductions and
exemptions.
– For income between Rs 7.5 lakh and Rs 10 lakh per annum, tax rate reduced to 15 pc from 20 pc.
– A person earning Rs 15 lakh per anum and not availing any deductions will pay Rs 1.95 lakh tax in place of Rs 2.73 lakh now.
– Income tax rates will be significantly reduced for those who forego reliefs, exemptions.
– New income tax rates will be optional.
– New simplified personal income tax regime. Anybody earning Rs 5- Rs 7.5 lakh to pay only 10 per cent tax. For income between Rs 7.5 lakh to Rs 10 lakh, the tax rate will be 15 per cent. No tax for those earning up to Rs 5 lakh.
FM has proposed Reduced personal tax rates for individuals in lieu of forgoing tax deductions
– LIC stake sale: Modi government announces partial stake sale in LIC through LIC.
– Robust mechanism in place to monitor the health of all commercial banks.
– Sitharaman said that clean, reliable, robust financial sector required to achieve USD 5 trillion economy.
– Modi government has proposed Rs 30,757 cr for Jammu and Kashmir, and Rs 5,958 for Ladakh for fiscal 2020-21.
– Rs 100 crore allocated for hosting G-20 Summit.
– Govt proposes major reform in recruitment of non-gazetted staff
– Bank Deposit guarantee raised to Rs 5 lakh from the current Rs 1 lakh!
Read Full Story: FM proposes to increase deposit insurance from Rs 1 lakh to Rs 5 lakh
– No more tax harassment! Modi govt proposes Tax Payer Charter
– Government has allocated Rs 3,150 crore for the ministry of culture, Rs 2,500 crore for the ministry of tourism.
– Five archaeological sites in Haryana, UP, Assam, Gujarat and Tamil Nadu, to be developed with on-site museums.
– Five archaeological sites in Haryana, UP, Assam, Gujarat and Tamil Nadu, to be developed with on-site museums.
– Rs 85,000 crore allocated for SCs and OBCs in Budget for FY 2020-21.
– Tribal Museum: Sitharaman said a tribal museum would be set up in Ranchi, Jharkhand.
– Government has proposed Rs 53,700 cr for welfare of schedule tribes and Rs 9,500 cr for senior citizens and divyangs for 2021-22.
– Rs 9,500 crore provided for senior citizens and Divyangs:
Announcements for women
Govt allocates Rs 28,600 crore for programmes specifically for women.
Modi government will set up a task force to recommend the marriageable age for women
Rs 35,600 cr allocated for nutritional related programme in FY21
FM says 150 higher institutes to start apprentice training for general category students.
Rail and Infrastructure
Sitharaman said that 1,150 trains will be run in PPP mode, also 4 stations to be redeveloped with help of private sector. More Tejas type trains will connect tourist destinations, Proposal for setting up large solar power capacity alongside rail track is under consideration.
The FM said that 550 wi-fi facilities have been commissioned at railway stations.
Delhi-Mumbai Expressway will be completed by 2023; Chennai-Bengaluru Expressway to be launched soon. Government to set up project preparation facilities for infrastructure sector, national logistic policy soon
Rs 27,300 crore provided for development and promotion of industry and commerce.
Aviation sector gets a boost with 100 more airports and doubling of aircraft fleet.
New Education Policy
Sitharaman said that Modi government will soon announce a new education policy. The government has received over 2 lakh suggestions on it. Rs 99,300 crore have allocated for education sector, Rs 3,000 crore for skill development in FY21. FM said that new special bridge courses to be designed for teachers, nurses, paramedical staff, caregivers.
Sitharaman said that the government plans to start a programme for urban local bodies to provide opportunities for internship to young engineers.
Piped Water
Government has proposed Rs 3.6 lakh crore towards piped water supply to households. Allocation for Swachh Bharat for 2020-21 stands at Rs 12,300 crore
Krishi Udaan For Farmers
Sitharaman said that Krishi Udaan will be launched by Civil Aviation Ministry to transport agri-products to national as well as international destinations. Self Help Groups will be allowed to set up village agri storage facilities. NABARD will map and geo-tab 162 mn tonne capacity agri warehouses across country. FCI and Warehousing Corporation of India to build warehousing facility on their land.
One horticulture crop in one district on cluster basis will be promoted.
Kisan Rail in PPP mode for farmers
Indian Railways to set up Kisan Rail in PPP mode for cold supply chain to transport perishable good. Horticulture with 311 MT exceeds production of food grains. Agri credit target set up at Rs 15 lakh cr for FY2020-21. Also, NABARD refinance scheme will be expanded.
Sitharaman said that the government has asked states to adopt three central model laws on agricultural land leasing, marketing and contract farming
– Rs 1 lakh crore Benefit to Common man: Sitharaman said that GST has resulted in efficiency gains in the transport and logistics sector, inspector raj has vanished, it has benefitted MSME. Consumers have got an annual benefit of 1 lakh crore rupees by GST. The Finance Minister said that a simplified return format for GST is being introduced from April 2020. GST has resulted in gains of Rs 1 lakh crore to consumers and removed inspector raj and also helped the transport sector. “Average household now saves 4 per cent in monthly expense after the rollout of GST,” Sitharaman said, and added that the Budget for 2020-21 aims to fulfil aspirations of people.
– Sitharaman recited a couplet in Kashmiri during her Budget speech. ‘Humara watan khilte hue Shalimar bagh jaise, humara watan Dal lake mein khilte hue kamal jaisa, nau jawanon ke garam khoon jaisa, mera watan tera watan, humara watan, duniya ka sabse pyara watan’
– India has brought 271 million people out of poverty.
– Sitharaman talked about key initiatives like Ujjawala Yojana by Modi government.
– Sitharaman said that with renewed vigour, under PM Modi’s leadership, we commit ourselves to present the people of India with all humility and dedication. People have reposed faith in our economic policy.
– Our govt brought fundamental changes in the Economy. Fundamentals of the Economy are strong, said Sitharaman.