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
- 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
- Bank Deposit insurance cover has been increased from Rs. 1 Lakh to Rs. 5 Lakh per depositer
- Government plans to amend the Companies Act to decriminalize civil offences.
- Government to sell part of its stake in LIC via Public offering.
- A budget allocation of Rs. 2.83 Lakh crore for the sector comprising agriculture and allied activities.
- Provide 20 Lakh farmers to set up standalone solar pumps. Help another 15 Lakh farmers to solarise their power grid.
- Agri – Credit availability set at 15 Lakh crore for 2020-21.
Health and Sanitation
- An Allocation of Rs. 69,000 crore for the health sector
- Rs. 12,300 crore for Swachh Bharat Mission this year
- Proposal to set up hospitals in Tier-II and Tier-III cities with the private sector using PPP
- Rs. 99,300 crore for Education sector in 2021 and about Rs. 3,000 crore for Skill Development.
- Urban local bodies to provide internship to young engineers for a year
- Degree level full-fledged online courses by instructions top ranked by NIRF, especially to benefit underprivileged students.
- Proposal to provide Rs. 1.7 Lakh crore for transport infrastructure in 2021
- Chennai – Bengaluru Expressway and Bengaluru suburban rail project to be started
- Aim to achieve electrification of 27000 km of lines.