Union Budget 2020
On February 1, 2020 Finance Minister of India Nirmala Sitaraman presented the Union Budget 2020. In this budget 2020, a new Income Tax regime comes to light but it is optional to taxpayers. So Taxpayers can pay income tax either with new tax regime or with old tax regime. Now lets discuss the Union Budget 2020 in bullet points that will help you to understand the budget very easily.
- Nominal GDP growth for the year 2020-21 estimated at 10%
- Receipts for 2020-21 estimated at – ₹ 22.46 lakh crore
- Expenditure at – ₹ 30.42 lakh crore
- Fiscal deficit has been estimated to be 3.8% in 2019-20 and 3.5% for the next year 2020-21.
- Turnover threshold for audit raised to ₹ 5 Crore from ₹ 1 Crore
INCOME TAX RATES
|Income||New Regime Tax%|
|0 – 5 Lakh||0%|
|5 – 7.5 Lakh||10%|
|7.5 – 10 Lakh||15%|
|10 – 12.5 Lakh||20%|
|12.5 – 15 Lakh||25%|
|Above 15 Lakh||30%|
Without Exemptions means More than 70 exemptions have been removed.
|Income||Old Regime Tax%|
|0 – 2.5 Lakh||0%|
|2.5 – 5 Lakh||5%|
|5 – 10 Lakh||20%|
|Above 10 Lakh||30%|
With all existing Exemptions
- Announced the quick issuance of PAN on the basis of Aadhaar.
- Companies will no longer be required to pay Dividend Distribution Tax (DDT).
- If taxpayer avails Vivad se Vishwas scheme by 31 March, 2020 then he/she will have to pay only disputed tax amount (waiver on interest and penalty)
- Central government’s debt in March,2019 – 48.7% (52.2% in March 2014)
- This year’s budget is woven around three themes which are — Aspirational India, Economic Development for All and Ours shall be a caring society.
- Introduced Aadhaar-based verification of taxpayers
Economy & Finance
- For development of industry and commerce – ₹ 27,300 crore
- Bank deposit insurance cover increased from ₹ 1 lakh to ₹ 5 lakh per depositor.
- Government to sell part of its stake in LIC via public offering (IPO).
- Agriculture and allied activities – ₹2.83 lakh crore allocated.
- Doubling farmers’ incomes by 2022 – 16 point action plan
- Government will provide 20 lakh farmers to set up standalone solar pumps under Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) and also help another 15 lakh farmers to solarise their power grid.
- Village storage scheme – To be run by women SHGs.
- Now ‘Kisan trains’ will have refrigerated coaches capability to carry perishables and milk.
- Agricultural credit target – ₹15 lakh crore
- Milk processing capacity to be doubled by 2025
- Health Sector – ₹69,000 crore allocated
- Swachh Bharat – ₹12,300 crore allocated
- Proposal to set up hospitals in Tier-II and Tier-III cities on PPP Model.
- Jan Aushadhi scheme for all hospitals under Ayushman Bharat by 2025.
- Nutrition-related Programmes – ₹35,600 crore for 2020-21
- Education Sector – ₹99,300 crore allocated
- Skill development. – ₹3000 crore allocated
- Proposal to setup a National Police University and a National Forensic Science University
- To promote “study in India” programme govt. will conduct IND SAT exam for students of Asia and Africa.
- For quantum technologies and applications – 8,000 crore rupees over five years
- ₹1.7 lakh crore for transport infrastructure
- 100 more airports by 2024 for UDAN.
- National Logistics Policy
- Chennai-Bengaluru Expressway to be started.
- Bengaluru suburban rail project proposed – ₹18,600 crore.
- Bharat Net – ₹6,000 Crore
- National Gas Grid to be expanded from 16,200 km to 27,000 km
- ₹ 3.37 lakh crore Allocated for 2020-21.
- Out of ₹ 3.37 lakh crore ₹ 1.13 lakh crore has been set aside to purchase new weapons, aircraft, warships and other military hardware.
- Sport Sector – ₹ 2826.92 crore allocated.
- Khelo India – ₹ 291.42 crore
- Power And Renewable energy sector – ₹ 22,000 crore
- Scheduled Castes and Other Backward Castes – ₹ 85,000 crore
- Scheduled Tribe – ₹2153.7 crore
- Senior citizens and Divyangs – ₹9500 Crore
- Tourism promotion – ₹2500 Crore
- Culture ministry – ₹3150 Crore
- India will host G20 Presidency in 2022
- Five archaeological sites to be developed as iconic sites.
- Rakhigarhi in Haryana, Hastinapur in Uttar Pradesh, Dholavira in Gujarat, Adichanallur in Tamil Nadu, and Sivasagar in Assam.
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