Key Highlights of Budget 2020

The finance minister, Nirmala Sitharaman presented the Union Budget 2020-2021 in the Lok Sabha. Following are the key highlights from the budget:-

Taxation :-

• A new tax regime has been announced. Those who want to be in the old regime with exemptions can continue in the old tax regime. The new slab rates are as follows:-

• Over 70 deductions have been removed.

• Companies will no longer be required to pay dividend distribution tax. Therefore, dividends will now be taxed in the hands of the recipient only.

• To boost investments and shore up the lagging economy, corporate tax for existing companies slashed to 22 per cent. Government proposes 100 per cent tax concession to sovereign wealth funds on investment in infra projects. Moreover, concessional tax rate of 15 per cent extended to power generation companies.

Key Highlights of Budget 2020

Economy and finance :-

• Insurance cover for bank depositors has been raised from ₹1 lakhs to ₹5 lakhs per depositor.

• Government plans to amend the Companies Act to decriminalise civil offences.

• Government to sell part holding in LIC. Besides, govt to also sell stake in IDBI Bank to private investors.

Agriculture :-

• Agri-credit target for the year 2020-21 has been set at ₹15 lakh crore.

• A budget allocation of₹ 2.83 lakhs crores has been done for the sector comprising agriculture and allied activities.

• Provide 20 lakhs farmers to set up standalone pumps.

• Help another 15 lakhs farmers to solarise their power grid.Government to provide incentives to farmers to go solar. Over 6 crore farmers under Pradhan Mantri Fasal Bima Yojna have been insured. Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM KUSUM) to be expanded, providing 20 lakh farmers in setting up standalone solar pumps.

Health & Sanitation :-

• ₹69,000 crores for allocated for the healthcare sector.

• ₹35,600 crores allocated for nutritional related programme in FY 2021 while ₹85,000 crore has been budgeted for the welfare of Scheduled Castes and other backward classes. Tourism promotion gets ₹2500 crore.

• Allocation for Swachh Bharat Mission for 2020-21 stands at ₹12,300 crore. In further push to PM Modi’s ‘Nal se jaal’ scheme, government proposes ₹3.6 lakh crore towards piped water supply to households.

• Nirvik (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce premium for small exporters.

• Proposal to set up hospitals in Tier-II & Tier-III cities with the private sector using PPP.

Education :-

• ₹ 99,300 crore allocated for education in FY 21. Government will start start Ind-Sat Exam to promote study in India and a degree-level online education programme for the deprived. A total of ₹ 3,000 crore will be given for skill development.

• Urban local bodies to provide internship to young engineers for a year.

• Degree level full-fledged online courses by institutions top ranked by NIRF, especially to benefit underprivileged students.

Infrastructure :-

• 1,150 trains will run under the public private partnership (PPP) mode, also four stations will be redeveloped with the help of the private sector.

• More Tejas type trains to connect tourist destinations.

• Railways will set up KISAN RAIL through PPP model so that perishable goods can be transported quickly. Krishi Udaan scheme to transport agri products to national as well international destinations to be launched.

• To boost infrastructure, Sitharaman says 9,000 km of economic corridor will be set up. “Chennai-Bengaluru expressway will also be started. Delhi-Mumbai expressway to be completed by 2023.

• 550 WiFi facilities have been commissioned at railway stations. 1 lakh gram panchayats to get optical fibre link, says FM Sitharaman. An allocation of ₹ 6,000 crore will be provided for Bharat Net scheme.

• Aim to achieve electrification of 27,000 km of lines.

Others :-

• Finance Minister Nirmala Sitharaman extends additional ₹ 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021. In another boost, Sitharaman proposes tax holiday to affordable housing developers.

• National Textile Mission to be launched with a proposed ₹ 1,480 crore allocation, says FM Nirmala Sitharaman.

• Allocation of ₹ 27,300 crore for development of industry and commerce.

• ₹ 20,000 crore for renewable energy sector in a bid to tackle pollution and climate change. A new scheme of smart meters will be launched

• An allocation of ₹ 8,000 crore will be made for National Mission on Quantum Computing and Technology.

• Sitharaman says enrolment ration for girls under ‘Beti Bachao Beti Padhao‘ is higher than boys. “Gross enrollment of girls is 94.32 per cent in elementary levels, 81.32 per cent in secondary level and 59.7 per cent in higher secondary level.

• ₹ 28,600 crore will be allocated in FY 21 for women-linked programmes. Allocation for senior citizens and ‘Divyang’ enhanced to Rs 9500 crore.

• ₹ 4,400 crore to tackle Delhi’s air pollution problem. Last year, the Supreme Court had termed the situation as “worse than Emergency” as air quality dipped to hazardous levels.

• Nirvik (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce premium for small exporters.

• More than 5 lakh MSMEs benefited from RBI’s restructuring of loans, says FM Sitharaman. “Government has asked RBI to consider extending window of debt structuring by one year to March 2021 for this purpose,” she says.

• F.Y. 2021 fiscal deficit target pegged at 3.5% of GDP. Fiscal deficit is considered the most important marker of a government’s financial health. Not letting the fiscal deficit go completely out of control has been one of the standout achievements of the Modi government.

• Vivad se Vishwas’ scheme announced by Sitharaman for direct tax payers whose appeals are pending at various forum. 4.83 lakh direct cases pending in various appellate forums.

• 15th Finance Commission has cut state share of central taxes by one percentage point to 41 per cent.

For Regular Professional Updates Join : https://t.me/Studycafe

Tags : Budget 2020 , Income Tax, Union Budget 2020, slab rates, Income Tax Deduction

Click Here to Buy CA INTER/IPCC Pendrive Classes at Discounted Rate