Union Budget 2020-21 Highlights & Summary (Latest)

Highlights from the Budget Speech 2020-21 of Finance Minister Nirmala Sitharaman.

The Minister proposed raising customs duty on a variety of products ranging from tableware and kitchenware, electrical appliances to footwear , furniture, stationery and toys to give a level playing filed to domestic companies and boost ‘ Make in India’.

Finance Minister Nirmala Sitharaman presented the Union Budget 2020-21 in the Lok Sabha.

Here are some of the key Highlights from Union Budget 2020

TAX

1. A new tax regime has been announced. Those who want to be in the old regime with exemptions, can continue

Income ( Per Annual) Rate	Proposed Tax Rate	Old Tax
Upto 2 .5 Lakh	No Tax	No Tax
2 .5 Lakh to 5 Lakh	No Tax	5 %
5 Lakh to 7 .5 Lakh	10 %	20 %
7 .5 Lakh to 10 Lakh	15 %	20 %
10 Lakh to 12 .5 Lakh	20 %	30 %
12 .5 Lakh to 15 Lakh	25 %	30 %
Above 15 Lakh	30 %	30 %

2. Over 70 Deducations have been removed

3. Companies will no longer be required to pay Dividend distribution Tax ( DDT)

Economy and Finance

1. Bank Deposit insurance cover has been increased from Rs. 1 Lakh to Rs. 5 Lakh per depositer
2. Government plans to amend the Companies Act to decriminalize civil offences.
3. Government to sell part of its stake in LIC via Public offering.

Agriculture

1. A budget allocation of Rs. 2.83 Lakh crore for the sector comprising agriculture and allied activities.
2. Provide 20 Lakh farmers to set up standalone solar pumps. Help another 15 Lakh farmers to solarise their power grid.
3. Agri – Credit availability set at 15 Lakh crore for 2020-21.

Health and Sanitation

1. An Allocation of Rs. 69,000 crore for the health sector
2. Rs. 12,300 crore for Swachh Bharat Mission this year
3. Proposal to set up hospitals in Tier-II and Tier-III cities with the private sector using PPP

Education

1. Rs. 99,300 crore for Education sector in 2021 and about Rs. 3,000 crore for Skill Development.
2. Urban local bodies to provide internship to young engineers for a year
3. Degree level full-fledged online courses by instructions top ranked by NIRF, especially to benefit underprivileged students.

Infrastructure

1. Proposal to provide Rs. 1.7 Lakh crore for transport infrastructure in 2021
2. Chennai – Bengaluru Expressway and Bengaluru suburban rail project to be started
3. Aim to achieve electrification of 27000 km of lines.