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Key Highlights of India Union Budget 2020…!!

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Union Budget 2020 Announcements

The Union Budget of India for 2020-21 is presented by Nirmala Sitharaman on 1st Feb 2020. It is her second union budget, which contains the details about the government’s revenue and expenditure for fiscal year 2020- 2021. Stock market to remain open today for a special trading session on Budget day.  The markets will also be watching financial year 2021 budgetary assumptions, particularly revenues and GDP growth and new announcements. Let’s look at some of the key highlights of budget :

Market to remain open today on account of Budget 2020.

  • Market to remain open today on account of Budget 2020.
  • A budget to boost your income and purchasing power: FM
  • A new simplified GST return from April.
  • 16 lakh new taxpayers added to the system.
  • Between 2006-2016 India was able to raise 217 million people out of poverty.
  • FM: Between 2006-2016, 271 million people were pulled out of poverty. We are now the 5th largest economy in the world.
  • GST has resulted in efficiency gains in transport, logistics sector.
  • Central govt’s debt has come down to 48.7% in March 2019 from 52.2% in March 2014.
  • Market Update: Nifty above 12,000, Sensex above 40,800
  • Three key themes of Budget: Aspirational India, Economic Development and Caring Society.
  • India is now 5th largest economy in world : FM
  • Farm markets need to be liberalized: FM
  • We have insured 6.11 crore farmers under Pradhan Mantri Fasal Bima Yojna: FM
  • Modi government will double the income of the farmers by 2022: FM
  • 20 lakh farmers to be helped to set up solar power set:  FM
  • Agriculture credit target set at Rs 15 lakh crore.
  • Kisan Rail for transporting perishable goods.
  • Focus on Agriculture warehouse, Modi Government to provide funds for setting up these warehouses at the block level.
  • A sum of Rs 12,300 crore allocated for Swach Bharat.
  • Raising fish production 200 lakh tonnes by 2023.

Government looks to end TB by 2025.

Health Sector :
1) Rs 69,000 crore is allocated for health in this budget.
2) Government looks to end TB by 2025.
3) An amount of Rs 3.65 lakh crore for Jal Jeevan Mission.
4) FM proposes to expand Jan Aushadhi Yojana in all district of country.
FM Proposes full-fledged online degree programmes, given by top 100 educational institutions.
Education Policy:
1) New Education Policy soon: FM
2) FM Proposes full-fledged online degree programmes, given by top 100 educational institutions.
3) A National Police Institute and a National Forensic Institute proposed in the Budget.
4) IndSAT Exams to be held abroad to screen candidates for entry in Indian Universities.

 

Finance Minister Nirmala Sitharaman today slashed the personal income tax rate for individuals for fiscal year 2020-21.

New Income Tax Slab :
1) 10% for those in the Rs 5 lakh- 7.5 lakh slab.
2) 15% for Income between Rs 7.5 lakh-10 lakh.
3) 20% for income between Rs 10- 12.5 lakh
4) 25% for income between Rs 12.5 – Rs 15 lakh.
5) 30% for income above Rs 15 lakh.
6) The new income tax is optional without exemption.
Tax rate for existing companies brought down to 22%.
Tax Incentives : 
7) FM proposes to remove DDT.
8) Tax rate for existing companies brought down to 22%.
9) New companies tax rate reduced to 15%,

 

LIC to come up with IPO.

New Measures 
1) LIC to come up with IPO.
2) Insurance cover for deposit will be increased from Rs 1 lakh and Rs 5 lakh.
3) Government stake in IDBI Bank to be divested to retail investor,
4) Internation bullion exchange to be set up in the GIFT city.
5) Tax holiday for affordable housing project extended by another year.
6) Govt proposes deferment of tax payment by employees on ESOPs from startups by 5 years.
7) Tax on Co-op societies to be reduced to 22% plus surcharge.
8) Pan card to be issued instantly based on Aadhar.
9) New power generation companies to be taxed at 15%.
10) Bharat Net: Rs 6000 crore boost for internet connectivity

 

The budget has something for everyone. Through her Budget, FM has tried to reach out to every section of the society by reducing the tax rates, launch of LIC IPo and new scheme, removal of DDT. The budget aligns with her theme of “ Aspirational India’’.

 

 

 

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