Budget 2020 focuses on three ideas — Aspirational India, Economic development, A Caring Society. The economic growth is projected at 6%-6.5% in the next FY.
New Delhi| Finance Minister presented her second Budget, introducing a new optional personal income tax system, a new tax dispute settlement scheme and unveiled a 16-point plan to revive growth in the country. She said Budget 2020 will boost income and purchasing power of the people
FY21 ₹ 85000 crore allocation for backward class welfare.
FY21 ₹ 69000 crore allocation for the health sector.
FY21 education allocation at ₹99,300 crore.
FY21 allocation of ₹ 15 lakh crore for farmers.
FY21 agriculture allocation ₹1.38 lakh crore.
FY21 allocation of ₹ 28,600 crores for women.
FY21 allocation of ₹ 53,700 crores for the welfare of the scheduled tribes.
FY21 ₹ 4,400 crores allocated for clean air.
FY21 allocation of ₹ 2,500 crores for tourism.
FY21 allocation of ₹ 5,958 crores for Ladakh.
FY21 ₹ 100 crores allocated for India G20 Conference in 2022.
FY21 ₹ 3 lakh 50,000 crores allocated for banks.
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Taxation:
The budget 2020 brings new income tax reform:
| Annual Income in Lakhs | Tax Rate in 2019 | Tax rate in 2020 |
| 0-2.5 | 0 % | 0% |
| 2.5-5 | 5% | 0% |
| 5-7.5 | 20% | 10% |
| 7.5-10 | 20% | 15% |
| 10-12.5 | 30% | 20% |
| 12.5-15 | 30% | 25% |
| Above 15 | 30% | 30% |
Tax on cooperative societies reduced to 22% without exemptions.
To simplify the tax system and lower tax rates, around 70 of more than 100 income tax deductions and exemptions have been removed.
Dividend Distribution Tax (DDT) abolished; Companies will not be required to pay DDT; dividend to be taxed only at the hands of recipients, at the applicable rates.
15% concessional tax rate for new power generation companies.
Housing:
Tax holiday for affordable housing extended by 1 year in the budget.
Investment:
Govt plans to raise funds via Life Insurance Corporation (LIC) initial public offer.
NRI will be allowed to invest in certain G-sec.
FPI limit in corporate bonds raised to 15% from 9%.
Govt doubles divestment target for the next fiscal at Rs 2.1 lakh crore.
Jobs:
National recruitment agency: New common entrance test for government non-gazetted jobs and public sector banks.
Infra:
5 new Smart cities to be set up via PPP model.
Rs 1.7 lakh crore allocated to transportation
100 more airports to be set up by 2024 to support UDAN scheme.
Tourism:
* 5 archaeology sites to be developed for world-class museums
* Rs 2,500 crore for tourism promotion.
Swachh Bharat Mission:
The Finance Minister announced that the total allocation proposed for Swachh Bharat Mission is ₹12,300 crore.
Nirmala Sitharaman said the NDA government is “committed to Open Defecation Free (ODF) plus in order to sustain ODF behaviour and to ensure no one is left behind.”
Education sector:
150 higher education institutions to offer apprenticeship diplomas by March 2021. The government will promote ‘Study In India’ initiative.
New education policy to be announced soon.
You can also follow our live Budget 2020 updates on twitter.
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