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| Budget 2020 |
Budget 2020
The Finance Minister Nirmala Sitharaman today Saturday presented the annual Union Budget 2020-21. The following key points to be noted.
1. The Finance Minister has changed the income tax rate for the earning up to Rs.15 lakhs in the budget 2020. but it is optional to the taxpayers because if the taxpayers choose the reduced income tax rate than the taxpayers have to let go 70 exemptions.
The New tax slab rate
Up to Rs.5 lakh : No tax
Rs.5 lakh to Rs.7.5 lakh : 10%
Rs.7.5 lakh to Rs.10 lakh : 15%
Rs.10 lakh to Rs.12.5 lakh : 20%
Rs.12.5 lakh to Rs.15 lakh : 25%
Above Rs.15 lakh : 30%
2. The government in Budget 2020 will sell some of its stakes in LIC, through launching an IPO and the Finance minister also says that the insurance cover for each depositor will be increased from Rs 1 lakh to Rs 5 lakh
The government has also relaxed fiscal deficit for FY20 to 3.8 percent of the GDP and to 3.5 percent for FY21.
3. Finance Minister Nirmala Sitharaman says the GST rate is being deliberated upon. Finance Minister says ease of doing business has improved in India. Undue claims of FTA benefits have been a concern.
4. The Finance Minister on the budget 2020 said dividend distribution tax has been shifted to individuals instead of companies. the Finance Minister said concessional tax rate of 15 percent has been extended to power generation companies. The government plans 100 percent tax concession to sovereign wealth funds on investment in infra projects, concessional withholding rate of 5 percent on interest payment to non-residents has been extended up to June 30, 2022.
5. The Finance Minister in the Budget 2020 speech said that the government will soon launch an Aadhaar based verification of taxpayers. Finance Minister Sitharaman also said that it will also facilitate instant online allotment of PAN for filing any application form.
6. Now, look at the Defense Budget. it is hiked by 6% from Rs 3.18 lakh crore to Rs 3.37 lakh crore. The total budget would go up to Rs 4.7 lakh crore.
7. The customs duty has been hiked from 10 percent to 12.5 percent for compressors in ACs and refrigerators with immediate effect because of this all these items become costlier in this Budget 2020.
8. Government goal to raise fishery exports to Rs 1 lakh crore by 2024-25. The government also proposes to put in place a framework for the development, management, and conservation of marine fishery resources.
9. Solar power generated by farmers from barren land will be encouraged and solar equipment companies will gain from this.
10. The customs duty on passenger vehicles, bus, and trucks, three-wheelers, and two-wheelers that are brought in India is to be raised to 15 percent, up from 10 percent presently from April. and also electric vehicle becomes costlier.
11. The Finance minister says in Budget 2020 that the government plans to monetize 12 highways, covering over 6,000 km, before 2024. The government plans to use the FASTag mechanism to raise funds from viable highways. this is for the investment in NHAI.
12. The Finance Minister Nirmala Sitharaman said that the government plans to increase the investment limit of foreign portfolio investors that is FPI in corporate bonds from 9% to 15%. the finance minister also said that certain government securities will be open for foreign investors.
13. The Finance Minister will introduce a scheme to provide subordinated debt for entrepreneurs of MSME. The government has asked the RBI to extend the debt restructuring window for MSME by a year to 31 March 2021. A National Recruitment Agency will be set up for conducting common online eligibility tests for recruitment to non gazetted posts.
14. The Government's goal to develop 100 airports in the country. It is important for the tourism sector of the country. In tourism.
15. National Logistics Policy to be launched soon National Logistics Policy to be launched soon.
16. 4 railway stations and 140 trains develop on a PPP basis.
17. Three new expressways will be constructed, the Delhi Mumbai Way will be completed by 2023.
18. Railway track will generate electricity by placing a solar panel on the ground of the parallel railway. and electrification of a 27000 km track will be done.
19. 1 lakh gram panchayat will be connected by fiber optical.
20. the Government will take action against the problem of shortage of water.
21. the investment in FDI has been increased by 28400 corer dollars.
22. Rs.27.1 Crore people are come out from the poverty line.
23. Solar pumps will be made available to over 4 lakh farmers. Pradhan Mantri KUSUM to cover 20 lakh farmers for stand-alone solar pumps and further 15 lakh for grid-connected pumps.
24. Kisan Rail and Krishi Udaan to be launched by Indian Railways and Ministry of Civil Aviation respectively for a seamless national cold supply chain for perishables.
25. The government aims to double the income of farmers by 2022.
26. The government will work on the development of drought-hit districts.
27. Allocation of 69000 crores for the Health Sector.
28. Rs.12300 crores allocated for clean India.
29. The PPP will open district hospitals and Medical Colleges.
30. Rs.1.70 lakh crore allocated to transport infrastructure.
31. The high-speed train will be started between Ahmedabad Mumbai. WiFi service will be started at 550 stations.
32. Simplified GST return shall be implemented from 1st April 2020. The refund process to be fully automated.
33. About 150 higher educational institutions will start apprenticeship embedded courses.
34. Internship opportunities to fresh engineers by urban local bodies.
35. Special bridge courses to improve skill sets of those seeking employment abroad.
36. Knowledge Translation Clusters for emerging technology sectors. Scaling up of Technology Clusters harboring testbeds and small scale manufacturing facilities. National Mission on Quantum Technologies and applications with an outlay of Rs.8000 crore proposed.
37. 103 lakh crore National infrastructure Pipeline projects announced.
38. An international bullion exchange to be set up at GIFT City.
Due to the budget 2020, the stock market today has been very vibrant and the market has come down significantly. in this note, the Finance minister says that the market will recover on Monday.
This all about the Budget 2020 and any update is coming then we will update soon.
Thank you.