Budget 2020 highlights


Budget 2020 highlights

Finance Minister Nirmala Sitharaman today presented the Union Budget 2020-21 in the Lok Sabha. This is the second budget after Narendra Modi led National Democratic Alliance returned to power for a second term. 
Sitharaman today also proposed new income tax slabs and lower rates. These income tax rates are optional and are available to those who are willing to forego some exemptions and some deductions.

Here are the highlights of Budget 2020

Manufacturing
Ø Scheme focused on encouraging manufacture of mobile phones, electronic equipment and semiconductor packaging to be introduced
Ø To encourage private sector to build Data Centre Parks throughout the country
Ø 80 billion ($1.13 billion) over five years to be provided for quantum technologies and applications
Ø Milk processing capacity to be doubled by 2025

More airports, highways
Ø India to develop 100 more airports by 2024
Ø India to monetize over 6,000 km of highways in 12 lots by 2024
Ø India to privatize at least one major port
  
SUBSIDY
Ø Food subsidy seen at ₹1.15 trillion in 2020/21
Ø Petroleum subsidy seen at ₹409.15 billion in 2020/21
Ø Fertilizer subsidy ₹713.09 billion in 2020/21

Infra sector: 
Ø ₹100 lakh crore to be invested on infrastructure over the next 5 years
National Infrastructure Pipeline.
Ø Rs. 103 lakh crore worth projects; launched on 31st December 2019
Ø More than 6500 projects across sectors, to be classified as per their size and stage of development

A National Logistics Policy to be released soon
Ø To clarify roles of the Union Government, State Governments and key regulators.
Ø A single window e-logistics market to be created
Ø Focus to be on generation of employment, skills and making MSMEs competitive
Ø National Skill Development Agency to give special thrust to infrastructure-focused skill development opportunities
Ø Project preparation facility for infrastructure projects proposed
Ø To actively involve young engineers, management graduates and economists from Universities
Ø Infrastructure agencies of the government to involve youth-power in start-ups
Ø ₹1.7 lakh crore proposed for transport infrastructure in 2020-21


Skill India initiative
Government proposed ₹3,000 crore for 'Skill India' to provide relevant skill training to the youth in the country, said Finance Minister Nirmala Sitharaman on Saturday.
"There is a huge demand for teachers, paramedical staff and caregivers in foreign countries. However, their skills do not match in accordance to demand by employers. So, my government proposes ₹3,000 crore for skill development," she said


Finance Bill proposed
Dividend Distribution Tax will be scrapped
A dividend distribution tax for companies will be scrapped, entailing a revenue loss of ₹250 billion

Excise duties
Ø Tax on cigarettes and other tobacco products to be increased

Personal Income Tax Slab
FM Nirmala Sitharaman today in Budget 2020 proposed new income tax slabs and lower rates. These income tax rates are optional and are available to those who are willing to forego some exemptions and some deductions.

Here is the new income tax slabs
0 - 2.5 lakh - exempted
₹2.5 lakh - ₹5 lakh - 5%
₹5 lakh - ₹7.5 lakh - 10%
₹7.5 lakh - ₹10 lakh - 15%
₹10 lakh to ₹12.5 lakh – 20%
₹12.5 lakh - ₹15 lakh - 25%
No change in tax rates above ₹15 lakh

Income tax rates will be significantly reduced for those who forego reliefs, exemptions, said FM Sitharaman.
For those who want to continue with existing tax rates, are allowed to take benefits of reliefs, exemptions, deductions.




Disclaimer
The article is for reference, guidance and complied based on experience and knowledge about the relevant Laws. This should not be considered legal advice. You should seek appropriate counsel for your particular case.
Please note that this post is for the readers in India.


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