Finance Minister Nirmala Sitharaman presented Union Budget 2020 in the Parliament on 1.02.2020
- Deposit Insurance Coverage to increase from `1 lakh to `5 Lakh per depositor.
- Eligibility limit for NBFCs for debt recovery under SARFAESI
- Act proposed to be reduced to asset size of `100 crore or loan size of `50 Lakh.
- Proposal to sell balance holding of government in IDBI Bank Proposal to sell balance holding of government in IDBI Bank.
- Separation of NPS Trust for government employees from
Announcements for women
- Govt allocates Rs 28,600 crore for programmes specifically for women.
- Modi government will set up a task force to recommend the marriageable age for women
Benefit of new Tax regime
- 69 % of taxpayers will be able to save up to rupees 78000 every year( according to revenue department).
- Concessional corporate tax rate of 15 per cent to new domestic companies in manufacturing and power sector.
- Tax concession for sovereign wealth fund of foreign governments and other foreign investments.
- Tax benefits to Start-ups by way of deduction of 100 per cent of their profits are enhanced by increasing turnover limit and period of eligibility.
- Concessional tax rate for cooperatives proposed.
- Turnover threshold for audit of MSMEs increased.
- Extension of time limits pertaining to the tax benefits for affordable housing.
- Issuance of Unique Registration Number to all charity institutions for easy tax compliance.
- Health cess to be imposed on imports of medical equipment given these are made significantly in India.
- Dividend Distribution Tax removed and classical system of dividend taxation adopted.
|Income bracket||Tax rate(percent)||Income||Tax rate|
|Below 5 lakhs||Exempt||12.5-15 lakhs||25|
|5-7.5 lakhs||10||Above 15 lakhs||30|
Simplified GST return shall be implemented from 1st April 2020. Refund process to be fully automated.
Under the new regime
- A person earning Rs 10,00,000 as income will have to pay flat Rs 78,000 as tax (including cess) without any deductions.
- Pay Rs 78,000 tax on Rs 10,00,000 annual income
- Bank Deposit guarantee raised to Rs 5 lakh from the current Rs 1 lakh!
Industry, Commerce and Investment
- Scheme to encourage manufacturing of mobile phones, electronic equipment and semi conductor packaging.
- National Technical Textiles Mission for a period of 4 years.
National Logistics Policy to be launched soon
- Roads: Accelerated development of Highways.
- Railways: Four station redevelopment projects
- 150 passenger trains through PPP mode.
- More Tejas type trains for tourist destinations.
- Port: Corp g jp oratizing at least one major port.
- Air: 100 more airports to be developed under UDAAN