Highlights of Union Budget 2020-21

Finance Minister, Smt. Nirmala Sitharaman presented the FY 2020-21 Budget to Lok Sabha on 1st of Feburay 2020; Here’s the highlight of the same:

  1. Basic tax exemption raised to rs 5 lakhs from rs 2.5 lakhs
  2. Divestment target revised to rs 2.1 lakh crore from rs 1.05 lakh crore in fy 20
  3. Taxes on individuals lowest, simplest
  4. Indirect taxes : customs duty raised on footwear
  5. Make in India policy successful and exporting world class products
  6. Nominal health cess by way of duty or cess for import of medical equipment because medical equipment is being made in India now, so the cess is to be invested in health care
  7. Rate of withholding tax extended to FY23 for FPIs
  8. 100% exemption for sovereign wealth funds investment in infrastructure bonds
  9. 5% concession for investments in municipal bonds
  10. Audit threshold for MSMEs raised to Rs 5 cr from Rs one cr
  11. Real estate transactions: limit to be raised from 5% to 10%, if income is 5% less than the circle rate in the real estate transaction
  12. Tax holiday for affordable housing extended by one year
    to amend IT act to avoid faceless
  13. Registration of of charitable institutions to be made electronic
  14. Vivad se vishwas scheme to reduce litigation in tax disputes
  15. Scheme to waive penalties if tax dispute is resolved by march 31
  16. Additional amount to be paid if tax dispute is resolved by June 31
    to prevent vexatious procedures in tax disputes
  17. Revenue loss of Rs 40,000 crore because of tax breaks under new regime
  18. New income tax is optional , meaning tax payer can chose either scheme
  19. New IT available for those willing to forgo deductions and concessions under old scheme
  20. In the new simplified tax regime removed 70 categories of deductions
    offers more than 100 new deductions
  21. Dividend distribution tax abolished
  22. Revenue loss of Rs 25,000 crore due to DDT abolition
  23. Companies not to pay DDT
  24. New power generation companies to pay tax at 15% only
  25. Corporate tax to be reduced for new companies to historic low of 15% and 22% for existing companies in manufacturing sector to make them highly competitive in the global market
  26. Substantial loss of revenues for government seen in short terms due to corporate tax cysts
  27. Personal income tax payers and simplify taxlaws, new simplified tax structure for individual tax payers
  28. Reduced rates of taxation of 10% against 20% for rs 5 to rs 7.5 lakhs
  29. Incomes between rs 7.5 to rs 10 lakhs , reduced rates of tax 15% against 20%
  30. Income between rs 10 to 12.5 lakhs, reduced rates tax to 20% from 30%
  31. For incomes between 12.5 to 15 lakhs , reduced rates at 25% against 50%
  32. Incomes above 15 lakhs rs continued at 30%
  33. Those earning 5 lakhs no taxes either in old or new tax regime for those earning above rs 15 lakhs and availing no concessions will save rs 78,000 still be a gainer if he was availing rs 1.5 lakhs under old regime more
  34. FY20 fiscal deficit estimated at 3.8% against earlier estimate of 3.3% of GDP
  35. FY21 fiscal deficit targeted at 3.5%
  36. Net market borrowing estimated at 5,36 lakh crore for FY 21
  37. New debt ETF instruments to be launched mostly in government securities
  38. FPI limit in government bonds to be raised to 15% from 9%
  39. Enhance partial credit for NBFCs
  40. Govt to raise funds via LIC IPO
  41. Government to divest part of LIC through an IPO
  42. Transfer balance of funds to GST compensation fund for 2016-18
  43. Revised expenditure of government pegged at Rs 26.99 lakh crore
  44. Nominal GDP growth projected at 10% for FY 21
  45. Receipts estimated at Rs 22.46 crore for FY 21
  46. To amend companies act to bring criminal liability in certain areas
    recruitment of common entrance tests for non gazetted posts in government
  47. Deposit insurance scheme coverage enhanced from rs one lakh to rs five lakhs
  48. PSBs to be encouraged to approach markets for capital fund
  49. To amend banking regulation act to strengthen cooperative banks
  50. FY 21 fiscal deficit pegged ast 3.5% of GDP, currently 3.8% in FY 20
  51. NRIS to be allowed ot invest in certain categories of government securities
  52. RBI to mull recast of MSMEs by one more year
  53. Allocation for Rs 4,400 crore for clean air in FY 21
  54. Enshrine a Tax Payer Charter in the statute
  55. Prevent tax harassment of citizens
  56. Tax harassment cannot be tolerated
  57. Rs 2,500 crore allocation for promotion of tourism in FY 21
  58. Rs 9,500 crore allocation for handicapped and senior citizens
  59. Incentivise states promoting clean air in cities with population of over one million
  60. Wealth creators will be respected in India
  61. National security is top priority of the government
  62. To shut down thermal power plants exceeding emission levels
  63. Allocation of Rs 85,000 cr for Schedules castes and OBCs in FY 21
  64. Rs 53,700 crore allocation for scheduled tribes
  65. Rs 28,600 crore for women centric development in FY 21
  66. To set up Indian institute of heritage and conservation
  67. 5 archaeological sites to developed as iconic historic sites
    maritime museum to be set up
  68. Rs 3,100 crore allocation for culture
  69. Rs 8,000 crore allocated over five years for promoting Quantum technology
  70. More girls benefiting under the Beti Padao scheme
  71. To launch two new national science schemes
  72. Expand national gas grid to 27,000 km from 16,200 km
  73. To keep states share of central taxes at 42%
  74. Rs 35,600 cr for national nutritional programs in FY 21
  75. 100 more airports to be developed by Udan scheme
  76. 1.7 cr allocation for transport sector in FY 21
  77. Smart electricity meters to enable consumers to chose their power supply providers
  78. Rs 22,000 crore allocation for power and renewable power sector
  79. Rs 6,000 crore allocated for Bharat Net FY21
  80. One lakh gram panchayats to be linked through Bharat FY 21
  81. Budget to enhance income and purchasing power of people
  82. Budget to formalize economy where the fundamentals are still strong
  83. Budget to meet hopes and aspirations of the people inspector raj has vanished due to GST implementation
  84. GST most structural reform
  85. 60 lakh new tax payers added, 800 crore invoice uploaded, extensive engagement with tax payers
  86. Simplified GST tax system
  87. Turnaround time of trucks has reduced by 20% on back o GST synergies
  88. 60 lakh new tax payers added
  89. Introducing new system of GST returns system from April one 2020
  90. Households saved 4% on montehly spends after GST implementation
    clocked GDP growth 7.4% over 2014-19 inflation at 4.5%
  91. Central govt debt reduce to 48.7 % of GDP
  92. Debate on efficacy of monetary policy now
  93. Budget centers around economic development and caring society
  94. Budget centres theme of aspirational india
  95. Reconised the need to support
  96. Reforms focused on yielding more space for private sector
  97. To improve quality of life through infraline
  98. Aiming for seamless delivery through a digital services
  99. Fund allocations under the 16 points
  100. 2.83 lakh crore to be allocated for agriculture and irrigation
  101. 1.23 lakh crore for rural development and panchayati raj
  102. Agri credit target is 15 lakh crore against 12 lakh crore YOY
  103. Expand fish production
  104. Need to empanel more towns in tier two and three cities under ayushman bharat scheme
  105. More hospitals to be set up under ayushman bharat scheme
  106. Taxes recovered from hospital medial devices to be used for expansion of hospitals
  107. Rs 12,300 crore allocation under swachh bharat
  108. Rs 3.66 lakh crore for jal jivan mission
  109. Rs 69,000 crore for health care
  110. Eradicate TB by 2025
  111. New education policy to be announced
  112. To source more FDI and ECB for education sector
  113. 150 higher education institutions to offer apprenticeship diplomas by 2021
  114. Launch online degree programme for under privileged students
  115. Provide viability funding for setting up hospitals under the ppp model
    to promote study in India
  116. Promote Ind sat exams for attracting african strudents and asian students
  117. 1 year internship for engineers by urban local bodies
  118. Allocation for Rs 99,300 crore for education sector in FY 21
  119. Out of the above allocation Rs 3,000 cr for development for skill development
  120. Entrepreneurship has always been strength of India
  121. Set up investment cell for end to end entrepreneurship
  122. 5 new smart cities under the ppp model
  123. Rs 1,480 cr allocation for textile mission
  124. Start digital refund of state and central taxes to exporters
  125. Launch new export incentive scheme called NIRVIK

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