Budget 2020 Live Updates: Sitharaman restructures personal income tax slabs, drops dividend tax, announces LIC divestment
Parul February 1, 2020
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Budget 2020 : Last Updated: February 01, 2020 01:30 pm IST
Budget 2020 Taxes: Finance minister Nirmala Sitharaman says that the tax proposals would bring ease of compliance and reduce litigation. A new personal income tax regime would be reduced who forego deductions and exemptions.
- Tax of only 10 per cent will be charged to Rs 5 lakh-7.5 lakh income as against prevailing 20 per cent rate.
- From Rs 7.5 lakh-10 lakh income, a tax rate of 15 per cent against 20 per cent prevailing rate.
- For income Rs 10-12.5 lakh, a rate of 20 per cent as against 30 per cent earlier.
- For income between Rs 12.5 lakh-15 lakh will be taxed at 25 per cent as against 30 per cent.
- For those at Rs 15 lakh plus income, tax will be 30 per cent.
FM Nirmala Sitharaman says currently more than 100 exemptions provided in I-T Act. Now around 70 of them have been removed in the simplified regime. Remaining will be reviewed over the coming years to simplify the system, says FM.
Dividend distribution tax abolished, says FM. Companies will no longer be required to pay DDT. A total of Rs 25,000 crore is revenue foregone due to DDT abolition, says FM. This will make India an attractive investment destination.
Corporate tax cut will be available for power generation companies as well. Government will grant exemptions for sovereign wealth funds in infrastructure and other notified sector with minimum lock-in of three years. The rate of withholding tax has been extended to 2023 for FPIs.
Nirmala Sitharaman says the concessional 5% withholding tax has been extended to municipal bonds. Cooperatives are taxed at 30 per cent now. FM says cooperatives can choose a 22 per cent tax with 10 per cent surcharge and 4 per cent cess with no exemptions.
Nirmala Sitharaman says for affordable housing, the deduction of Rs 1,50,000 will be extended to loan sanction by one year. Tax holiday on profits of developers involved in affordable housing projects will be extended by one year to March 2021.
Nirmala Sitharaman says to ease deduction donation it is proposed to pre-fill information of those donating. This will result in hassle-free claims for the individuals claiming tax exemptions.
Nirmala Sitharaman says that it will amend the I-T Act to enable faceless appeals on the lines of faceless assessments.
Nirmala Sitharaman that key is to reduce litigation on indirect taxes. A total of 4.83 direct tax cases pending in various forums. So a new direct tax dispute settlement under ‘Vivad se Vishwaas Scheme’. No penalty will be charged if taxpayers pay by March 31, 2020. Here, only the disputed tax amount has to be paid.
Nirmala Sitharaman says I-T Act will be amended where CBDT will be mandated the taxpayers charter. Further, PAN will be instantly online based on Aadhaar without filling any forms. Personal income tax is now at the lowest level.
GST reforms will continue including a simplified return-filling form. Refund has been simplified and has been fully automated, and Aadhaar-based taxpayer verification will be done, says Nirmala Sitharaman.
No audit for companies with up to Rs 5 crore turnover will improve ease of doing business.
GST rate is being deliberated upon. FM says ease of doing business has improved in India. Undue claims of FTA benefits has been a concern, says Sitharaman.
Finance minister, says exemptions from customs duty has been given in public interest from time to time. On review, some exemptions are being withdrawn, she added. Rest will be reviewed after September 2020.
Budget 2020 : Last Updated: February 01, 2020 01:20 pm IST
Govt Pegs Nominal GDP Growth at 10%.
We have estimated nominal growth of GDP for the year 2020-21 on the trends available, at 10%, says finance minister Nirmala Sitharaman.
Budget 2020 Latest Updates: The FY21 total expenditure at Rs 30.42 lakh crore. Net Market Borrowing for FY20 at Rs 4.99 lakh crore and net market borrowing for FY21 at Rs 5.36 lakh crore, says FM.
FM says issue of fiscal deficit has to be addressed in every budget. Government has undertaken tax reforms for this. We estimate fiscal deficit on 3.8 percent of GDP in FY20 and 3.5 percent for BEFY21, says FM.
Revised expenditure estimate for FY20 at Rs 26.99 lakh crore, says FM. Revised receipts for FY21 at Rs 19.32 lakh crore.
Loss of substantial revenue in the short term due to corporate tax rate cut, says FM Nirmala Sitharaman.
Budget 2020 : Last Updated: February 01, 2020 01:15 pm IST
MSME Budget 2020: Finance minister says, subordinate debt for entrepreneurs of MSMEs will be provided and will be treated as quasi-equity. More than 5 lakh MSME benefited from debt restructuring last year. Government has asked RBI to consider extending window of debt structuring by one year to March 2021 for this purpose.
Financial markets Budget 2020: For the financial markets, deepening the bond market is vital. Some government securities will be open for non-resident investors. To improve investor confidence, a legislation on laying down mechanism for netting of financial contracts will be done. A debt ETF consisting of government securities will be launched. For NBFCs and HFCs, liquidity constraints will be addressed. The FPI Limit in corporate bonds will be raised to 15% from 9%, says Nirmala Sitharaman.
Budget 2020: IFSC has the potential to become a centre of finance. It has 19 insurance entities already, and GIFT City will now set up an international bullion exchange. This will enable India to enhance its position, create more jobs and better price discovery of gold, says finance minister Nirmala Sitharaman.
Government to list LIC on the stock exchanges. Big news on Life Insurance Corporation of India which is the largest institutional investor, says finance minster Nirmala Sitharaman.
Disinvestment: Govt to sell part of its stake in LIC, says FM
Finance minister says, there has been a debate on projected fiscal numbers. Procedure adopted is compliant with FRBM Act She says repayment of these debts as hitherto are done of Consolidated Fund of India.
Budget 2020 : Last Updated: February 01, 2020 01:05 pm IST
National security is our priority: FM Sitharaman
Budget 2020 : Last Updated: February 01, 2020 01:00 pm IST
Rs 100 Crore Allocated for G20 Preparations | Finance minister Nirmala Sitharama tells the Hosue that India will host G20 Presidency in the year 2022.”For this I allocate Rs 100 crore for preparations,” she says.
Budget 2020 : Financial inclusion is critical. A clean, reliable and robust financial sector is essential for robust economy, says finance minister Nirmala Sitharaman. We have infused Rs 3.5 crore capital into PSU banks. A few among them will be encouraged to move capital market for fundraising purposes. Deposit insurance cover will be hiked to Rs 5 lakh from Rs 1 lakh. She reiterated that all deposits are safe, added Nirmala Sitharaman.
Budget Allocation for J&K and Ladakh, newfound UTs: Finance Minister Nirmala Sitharaman announces budget allocation of Rs 30,000 crore for development of Jammu and Kashmir and Rs 5,000 crore for Ladakh.
FM Sitharaman says deposit insurance cover will be hiked to Rs 5 lakh from Rs 1 lakh. She reiterated that all deposits are safe.
Govt to set up National Recruitment Agency for recruitment of non-gazetted posts, says FM. Propose to set up a national recruitment agency for conduct of computer-based online common eligibility test for recruitment to non-gazetted post.
Budget 2020 : Last Updated: February 01, 2020 12:50 pm IST
On Tax Harassment , we wish to institute a tax payer’s charter in our statute. We will put this into a law. We wish to ensure our tax payers are free against tax harassment: Finance Minister
On Economic Survey: Wealth creators will be respected in this country, says Finance Minister Nirmala Sitharaman. “Yesterday’s economic survey was themed as ‘wealth creation. PM Modi had in his independence day speech spoken elaborately on how wealth creators are the fuel of the country’s economy and need to be respected,” she says.
Ayushman Bharat, wealth creators being respected, PM Kisan doubling income, ease of living, national security being top priority are the main reforms of the country under PM Modi, says Nirmala Sitharaman.
Governance Budget 2020: FM Nirmala Sitharaman says governance and financial inclusion is needed. Governance should be clean and corruption-free, she says. Trusting every citizen, including aspirational youth, farmers, senior citizens and hard-working women is critical.
Tax Reforms Budget 2020: Businesses will need to be confident. A tax-payer charter will be institutionalised in the budget. This will be building trust, says finance minister Nirmala Sitharaman. Government will ensure that citizens need not worry about tax harassment. There is a debate on building criminal liabilities for civil acts. Companies Act will be amended to correct this, added Sitharaman.
Ease of Business Budget 2020: A stable and predictable business environment is critical for the government. Contracts Act will be strengthened to ensure that all contracts are honoured, says finance minister Nirmala Sitharaman.
Budget 2020 : Last Updated: February 01, 2020 12:45 pm IST
On the environment: Climate change will be looked at. India’s commitment under the Paris Agreement action will kick-in from January 1, 2021. Power plants with higher emissions will have to be closed. This land will be used for other purposes. The government will encourage plans to have clean air by the state governments with allocation of Rs 4,400 crore: Nirmala Sitharaman.
FM Nirmala Sitharaman quotes poet Thiruvalluvar. She says there are five jewels for a country, which is one without illness, one with wealth, it will have good crops, it should have happiness as well as safety/security, quoting the poet.
Budget 2020 : Last Updated: February 01, 2020 12:40 pm IST
Tourism Budget 2020: Five archaeological sites will be set up with museums on-site in Rakhi Gadi in Haryana, Hastinapur in UP, Dholavira in Gujarat, Shivsagar in Assam and Adichanallur in Tamil Nadu.
A tribal museum will be set up in Ranchi, Jharkhand. Maritime site will be set up in Lothal. A total of Rs 3,100 crore has been set aside for Culture Ministry in FY21. 100 more airports will be developed under UDAN by 2024. A total of Rs 2,500 crore will be allocated for tourism promotion in FY21.
3100 cr allocated for Ministry of Culture in 2021; 5 archeological sites will be developed as iconic sites.
Budget 2020 : Last Updated: February 01, 2020 12:35 pm IST
Women Budget 2020: FM says gross enrollment of girls under Beti Bachao Beti Padhao is higher than boys. Here, she says that total enrollment of girls is 94.32 per cent in elementary levels, 81.32 per cent in secondary level and 59.7 per cent in higher secondary level.
Women are a priority, especially pregnant women and lactating women. More than 6 lakh Anganwadi workers are equipped to upload status of more than ten crore households. This scale is unprecedented. Overall, there are imperatives to lower maternal mortality rates. FM proposes task-force on six months on this matter.
An allocation of Rs 35,600 crore for nutrition-related programmes in FY21. Further, Rs 28,600 crore will be allocated in FY21 by government for women-linked programmes.
SC/ST Budget 2020: FM Nirmala Sitharaman says for SC/OBC relief, a proposal of Rs 85,000 crore for FY21. For STs, Rs 53,700 crore will be provided.
Budget 2020 : Last Updated: February 01, 2020 12:30 pm IST
Power Budget 2020: A new scheme of smart meters will be launched. Here, the prepaid meters will give freedom to give consumers to choose supplier and rate as per their requirement. A total allocation of Rs 22,000 crore will be given to power and renewable sector, says Nirmala Sitharaman.
I urge all states and UTs to replace conventional energy meters by pre-paid smart meters in 3 years, this will give consumers the freedom to choose supplier and rate as per their requirements: FM Nirmala Sitharaman
Technology Budget 2020: Finance minister Nirmala Sitharaman says, India has embraced sharing economy with aggregators displacing regular businesses. Analytics, IoT and AI are changing the world. A policy will be set up to build data center parks throughout the country.
All public institutions at Gram Panchayat levels will be provided with digital connectivity. Fibre to home through BharatNet will link 100,000 Gram Panchayats in FY21 itself. An allocation of Rs 6,000 crore will be provided for BharatNet.
I propose to set up Data Center Parks. The IT sector should also look into this. This will help is storing and dissemination of data better, says FM
Mapping of genetic landscape is critical for India. Two national-level science schemes to be set up for getting a comprehensive national-level database.
An allocation of Rs 8,000 crore has been set up for the National Mission on Quantum Computing and Technology.
Budget 2020 : Last Updated: February 01, 2020 12:25 pm IST
5 Steps to boost for Railways :
- Setting up a large solar power capacity alongside the rail tracks on the land owned by the Railways.
- More Tejas like trains to connect major tourist attractions.
- More high speed tains like the one between Ahmedabad and Mumbai will be started.
- Bengaluru suburban rail will be provided the required boost.
- More station redevelopment programs.
A total of 12 lots of highway bundles will be monetised by 2024, says FM Nirmala Sitharaman.
100 more airports will be developed to provide support to the PM Udaan scheme says Finance Minister Nirmala Sitharaman
Proposed allocation for development of Industry & Commerce: FM Sitharaman proposes allocation of Rs 27,300 crore for industry and commerce in FY21.
FM says National Infrastructure Pipeline involves 6,500 projects. NSDC will help skill development in the infrastructure sector.
Making MSMEs competitive will be our goal. A total of 9,000 km of economic corridor will be set up. Chennai-Bengaluru expressway will also be started, says FM. Delhi-Mumbai Expressway To Be Completed By 2023.
Budget 2020 : Last Updated: February 01, 2020 12:15 pm IST
FM announces an allocation of Rs 3,000 crore for the Skill India programme. “There exists a huge demand abroad for teachers, paramedical staff and care givers. But their skills do not match the required ones by employers. My government proposes Rs 3000 crore for skill development,” she says
Budget 2020 : Last Updated: February 01, 2020 12:10 pm IST
FM says there is a cost advantage for electronics manufacturing in India. But she says that this needs more investment. FM proposes a scheme to encourage the manufacturing of mobile phones, semiconductor packaging and electronic equipment. She said that this could be used for the manufacture of medical devices as well. A detailed scheme with details will be released soon.
To increase India’s export credit, a new scheme NirVik announced. It will look into setting up hubs in smaller rural areas and districts. The scheme will be launched this year itself.
A new scheme NirVik will be for exporters. This will have lower premiums and a faster claims settlement. Refund to exporters the duties levied including electricity and VAT which have been not refunded. This will be launched this year itself, says FM. Each district will have to be developed as an export hub. The government’s e-marketplace has a lot of opportunities for SMEs. A total allocation of Rs 27,300 crore for development of industry and commerce in FY21, says FM.
India imports technical textile worth 6 million dollar. A new scheme for setting up manufacturing units of technical textiles is being proposed. All ministries during the course of this year will launching quality orders: Nirmala Sitharaman.
Budget 2020 : Last Updated: February 01, 2020 12:00 pm IST
Education Budget 2020 Latest Updates: Degrees can be taken online soon and will be offered by the Top 100 NIRF ranked institutes, says FM. IND-SAT exam will be held in Asian and African for scholarships to study in India. Police Academy and Forensic Sciences will be set up.
A total of 150 higher education institutes will have apprenticeship programmes by March 2021. Urban local bodies will provide fresh engineers a job opportunity for one year, says FM.
Dialogues have been with states about education policy of NEP, NEP will be announced soon. Education sector needs higher finance to attract good teachers. ECBs and FDI will be looked for the education sector. A total of 150 higher education institutes will have apprenticeship programmes by March 2021. Urban local bodies will provide fresh engineers with a job opportunity for one year. This will help engineers learn on the job, says finance minister Nirmala Sitharaman.
There is a huge demand for teachers, nurses, paramedical staff and care givers abroad. However, their skill-sets do not match standards and needs to be improved.
Youth and fishery extension work will be enabled for rural youth as Sagar Mitras, forming 500 fish farmer producing organizations.
Fish production to be raised to 200 lakh tonnes by 2022-23.
Degrees can be taken online soon and will be offered by the Top 100 NIRF ranked institutes. IND-SAT exam will be held for Asian and African students for scholarships to ‘Study in India’. Police Academy and Forensic Sciences will be set up, says Nirmala Sitharaman.
FM Sitharaman proposed an allocation of Rs 99,300 crore for Education. She says the government will work to promote ‘Study in India’.
FM says India for a millennium has been rich in skills in metallurgy and trading. Entrepreneurship is the spirit of India and has been its strength. Indians have given up greener pastures to come back to India and look at local challenges. Will create more opportunities for startup owners. Investment clearance cell will be set up for entrepreneurs. These individuals will be offered assistance in funding as well, and a portal will be set up for this purpose.
Rs 3.6 lakh crore for Jal Jeevan Mission has been approved. This will look at augmenting local water resources, desalination, water harvesting and renewing older sources in FY21.
Budget 2020 : Last Updated: February 01, 2020 11:50 am IST
Healthcare Budget 2020: There is a holistic vision of healthcare. Mission Indradhanush has been extended to cover new diseases and new vaccines. Fit India is part of it, she said.
There are 20,000 empanelled hospitals in Ayushman Bharat and need more in Tier 2 and 3 cities to benefit poor in these areas.
PPP mode hospitals will be set up under viability gap funding to look at areas where there are no hospitals. This will be 112 aspirational districts where priority will be given, says Nirmala Sitharaman.
Nirmala Sitharaman says the TB Harega, Desh Jeetega campaign will be strengthened to end TB by 2025 in the country. A total of Rs 69,000 crore has been provided for the healthcare sector of which PM Jan Arogya Yojana will get Rs 6,400 crore.
Budget 2020 : Last Updated: February 01, 2020 11:40 am IST
We shall help 15 lakh farmers solarize their grid-connected pump sets: FM
Agriculture Budget 2020 Live Updates: PM Kusum Scheme reduced dependence on diesel and kerosene and relied on solar energy. Total of 20 lakh farmers can set up standalone solar pumps, she says. Further, she said that the government could help 15 lakh solarise grid-connected pump sets. Farmers can also use barren land for solar energy and have a livelihood out of it, says finance minister Nirmala Sitharaman.
‘Krishi Udaan’ will be launch by Ministry of Civil Aviation: FM
FM Nirmala Sitharaman quotes Atichudi of Saint Avaiyar and says that farmland should have sufficient manure and water and not an excessive one. Will also revise incentives for the use of chemical fertilizers.
The government will also give warehouse building incentives for the farmers. The thrust is to offer viability gap funding, and Mudra loans will also be provided for such self-help groups. Here, women will be the ‘Dhanya Laxmi’ in the villages.
Kisan Rail will be set up by Indian Railways on PPP goods for transport of perishable goods. Added to this is Krishi Udan by civil aviation that will help value realization in North-East India and tribal areas.
Great focus will be one product in one district as far as the horticulture sector is concerned. Zero budget natural farming will be operationalized, and thrust will be on organic farmer, says Nirmala Sitharaman.
Govt will use youth in fishing expansion work as Sagar Mitra’s: FM
NBFCS and cooperatives are active in agriculture. NABARD refinance scheme will be expanded. There will be Rs 15 lakh crore agriculture credit availability, says Nirmala Sitharaman.
Budget 2020 is woven around three prominent things – aspirational India to boost the standard of living, economic development for all and building a humane and compassionate society says finance minister Nirmala Sitharaman.
Doubling of milk-producing capacity will be to 108 MT by 2025 from 53.5 MT. Will raise 200 lakh tons of fish production, and there will be Sagar Mitras who will be the fish farmers. Added to this is the production of algae and caged cultivation as well, says Nirmala Sitharaman.
For agriculture and allied activities, an allocation of Rs 2.83 lakh crore has been made for FY21. This includes agriculture, irrigation, rural development, Panchayati Raj, FM Nirmala Sitharaman.
Budget 2020 : Last Updated: February 01, 2020 11:35 am IST
There is a proliferation of technologies such as analytics, machine learning, AI, bioinformatics. We are committed to the goal of doubling farmers income by 2022: FM. 6.11 crore farmers insured under PM Fasal Bima Yojna.
Water stress-related issues are a serious concern for govt. Annadaatha can be Urjadaatha Also: FM
She says handholding of farm-based activities needs to be done. This, she said, can be done in cooperation with states. We present a 16-point action plan for this purpose.
India has uplifted 271 million people out of poverty.
Farm markets need to be liberalized, farming need to be made more competitive, handholding of farm-based activities need to be provided, sustainable cropping patterns and more tech required.
Budget2020 is to boost the income of people and enhance their purchasing power: FM
Budget 2020 : Last Updated: February 01, 2020 11:30 am IST
There has been a paradigm shift in governance. We shall strive to bring ease of living to every citizen: FM
Digital revolution will see the next wave, says FM. Will achieve seamless delivery of services through this, says Nirmala Sitharaman.
This Budget is woven around three prominent things – aspirational India to boost the standard of living; economic development for all; and building a humane and compassionate society.
Budget 2020 : Last Updated: February 01, 2020 11:25 am IST
There are 1 million out of poverty, and we should be proud of it, says finance minister
Finance minister Nirmala Sitharaman says central government debt reduced to 48.7% of GDP in 2019 from 52.2%. Will take the country forward, says FM.
Technology like machine learning, robotics, AI along with number of productive age group (15-65 years) are cross-cutting streams in India, says, finance minister. This is special to India, says Nirmala Sitharaman. Entrepreneurship has helped wither crisis.
Budget 2020 : Last Updated: February 01, 2020 11:15 am IST
40 crore GST returns were filed in this financial year and we have added 16 lakh new taxpayers, says FM
GST has integrated economically and has consolidated multiple taxes, says Nirmala Sitharaman. GST has led to inspector raj vanishing, says FM. Average household now saves 4 per cent of monthly spend due to reduced GST rates, she added.
Total of 60 lakh new taxpayers and 105 crore e-way bills generated under GST, says Nirmala Sitharaman. Moved on from over 4 per cent growth in 1950s to 7.4 per cent to 2014-19 period, says finance minister.
Budget 2020 : Last Updated: February 01, 2020 11:09 am IST
Finance minister Nirmala Sitharaman says GST has been the most historic reform in the country. FM pays homage to late Arun Jaitley who was the architect of goods and services tax.
The government has focused on structured growth, says finance minister Nirmala Sitharaman.
#Budget2020 : #GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted #MSME. Consumers have got a annual benefit of 1 lakh crore rupees by GST.
Budget2020 : #GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted #MSME. Consumers have got a annual benefit of 1 lakh crore rupees by GST.
The government has focused on structured growth. Motto of ‘Sabki Saath, Sabka Vikas and Sabka Vishwas’ has implemented new programmes for poor and disadvantaged under PM Modi, says Nirmala Sitharaman.
Budget 2020 : Last Updated: February 01, 2020 11:02am IST
This Budget is to boost income and enhance purchasing power, says finance minister. Our people should be gainfully employed, our businesses should be healthy, for all minorities, women and people from SCs and STs, this Budget aims to fulfil their aspirations.
Budget 2020 : Last Updated: February 01, 2020 10:15 am IST
Finance Minister Ms. Nirmala Sitharaman and Minister of State have reached Parliament House