Key Highlights of budget 2020
- Change in Individual tax rate subject to condition that not availing any reduction tax rate will be as follow:-
INCOME SLAB TAX RATE
0 to 5 lakh NIL
5.00 to 7.50 lakh 10%
7.50 to 10.00 lakh 15%
10.00 to 12.50 lakh 20%
12.50 to 15.00 lakh 25%
More than 15.00 lakhs 30%
- It has been proposed 100 percent tax concession to sovereign wealth funds on investment in infra projects.
- Concessional tax rate of 15 pc extended to power generation companies.
- Proposed under budget 2020 company will be no longer paid DDT and recipient will pay on such Dividend. Current dividend distribution Tax rate 15 % tax rate + 12 % surcharge + 4 % health and education cess
- Total 70 exemptions, deductions removed with a view to simplify tax regime . And govt. will loose around Rs 40,000 cr per annum due to removal of such exemptions
- Individual having income upto Rs 5 lakh in a year will pay no tax.
- Income tax rates will be significantly reduced for those who forego reliefs, exemptions.
- New income tax rates will be optional.
- 1005 tax exemptions to foreign investment in priority sector
- Under startup India plan no tax on 100 crore turnover during 3 consecutive financial year out of 7 consecutive year
- Under startup India plan ESOP issued to employee will be taxable after 5 years or sale
- Tax audit limit has been increased to 5 cr. Subject to condition that cash transaction should not be more than 5%
- Proposal for set up of taxpayer charter
- Sale of government holding in LIC through IPO
- In the budget proposed Rs 30,757 cr for Jammu and Kashmir, and Rs 5,958 for Ladakh for fiscal 2020-21.
- Proposal to set up national recruitment agency for recruitment to non gazetted post
- Bank Deposit guarantee raised to Rs 5 lakh from the current Rs 1 lakh!
- Proposal for set up of taxpayer charter
- Government has allocated Rs 3,150 crore for the ministry of culture, Rs 2,500 crore for the ministry of tourism.
- Five archaeological sites in Haryana, UP, Assam, Gujarat and Tamil Nadu, to be developed with on-site museums.
- Rs 85,000 crore allocated for SCs and OBCs in Budget for FY 2020-21.
- Tribal Museum: Sitharaman said a tribal museum would be set up in Ranchi, Jharkhand.
- Government has proposed Rs 53,700 cr for welfare of schedule tribes and Rs 9,500 cr for senior citizens and divyangs for 2021-22.
- Rs 9,500 crore provided for senior citizens and Divyangs:
- Govt allocates Rs 28,600 crore for programmes specifically for women.
- Proposed to set up a task force to recommend the marriageable age for women
- Rs 35,600 cr allocated for nutritional related programme in FY21
- Proposed to 150 higher institutes to start apprentice training for general category students.
- Sitharaman said that 1,150 trains will be run in PPP mode, also 4 stations to be redeveloped with help of private sector. More Tejas type trains will connect tourist destinations, Proposal for setting up large solar power capacity alongside rail track is under consideration.
- The FM said that 550 wi-fi facilities have been commissioned at railway stations.
- Delhi-Mumbai Expressway will be completed by 2023; Chennai-Bengaluru Expressway to be launched soon. Government to set up project preparation facilities for infrastructure sector, national logistic policy soon
- Rs 27,300 crore provided for development and promotion of industry and commerce.
- Aviation sector gets a boost with 100 more airports and doubling of aircraft fleet.
- Sitharaman said that Modi government will soon announce a new education policy. The government has received over 2 lakh suggestions on it. Rs 99,300 crore have allocated for education sector, Rs 3,000 crore for skill development in FY21. FM said that new special bridge courses to be designed for teachers, nurses, paramedical staff, caregivers.
- Sitharaman said that the government plans to start a programme for urban local bodies to provide opportunities for internship to young engineers.
- Government has proposed Rs 3.6 lakh crore towards piped water supply to households. Allocation for Swachh Bharat for 2020-21 stands at Rs 12,300 crore
- Civil Aviation Ministry will lauch krishi udaan to transport agri-products to national as well as international destinations
- Indian Railways to set up Kisan Rail in PPP mode for cold supply chain to transport perishable good. Horticulture with 311 MT exceeds production of food grains. Agri credit target set up at Rs 15 lakh cr for FY2020-21. Also, NABARD refinance scheme will be expanded.
- government has directed to states to adopt three central model laws on agricultural land leasing, marketing and contract farming
Categories: Income Tax