Highlights of Union Budget 2020-21

Finance Minister Nirmala Sitharaman presents FY 2020-21 Budget to Lok Sabha today.

• basic tax exemption raised to rs 5 lakhs from rs 2.5 lakhs
• divestment target revised to rs 2.1 lakh crore from rs 1.05 lakh crore in fy 20
• taxes on individuals lowest, simplest
• indirect taxes : customs duty raised on footwear
• make in India policy successful and exporting world class products
• nominal health cess by way of duty or cess for import of medical equipment because
• medical equipment is being made in India now
• cess to be invested in health care
• Rate of withholding tax extended to FY23 for FPIs
• 100% exemption for  sovereign wealth funds investment in infrastructure bonds
• 5% concession for investments in municipal bonds
• audit threshold for MSMEs raised to Rs 5 cr from Rs one cr
• real estate transactions ” : limit to be raised from 5% to 10%, if income is 5% less than the circle rate in the real estate transaction
• tax holiday for affordable housing extended by one year
• to amend IT act to avoid faceless
• registration of of charitable institutions to be made electronic
• vivad se vishwas scheme to reduce litigation in tax disputes
• scheme to waive penalties if tax dispute is resolved by march 31.
• additional amount to be paid if tax dispute is resolved by June 31
• to prevent vexatious procedures in tax disputes
• revenue loss of Rs 40,000 crore because of tax breaks under new regime
• New income tax is optional , meaning tax payer can chose either scheme
• New IT available for those willing to forgo deductions and concessions under old scheme
• In the new simplified tax regime removed 70 categories of deductions
• offers more than 100 new deductions
• dividend distribution tax abolished
• Revenue loss of Rs 25,000 crore due to DDT abolition
• Companies not to pay DDT
• New power generation companies to pay tax at 15% only
• corporate tax to be reduced for new companies to historic low of 15% and 22% for existing companies in manufacturing sector to make them highly competitive in the global market
• Substantial loss of revenues for government seen in short terms due to corporate tax cysts
• Personal income tax payers and simplify taxlaws, new simplified tax structure for individual tax payers
• reduced rates of taxation of 10% against 20% for rs 5 to rs 7.5 laklhs.
• incomes between rs 7.5 to rs 10 lakhs , reduced rates of tax 15% against 20%
• income between rs 10 to 12.5 lakhs, reduced rates tax to 20% from 30%
• for incomes between 12.5 to 15 lakhs , reduced rates at 25% against 50%
• incomes above 15 lakhs rs  continued at 30%
• those earning five lakhs no taxes either in old or new tax regime
• for those earning above rs 15 lakhs and availing no concessions will save rs 78,000
  still be a gainer if he was availing rs 1.5 lalhjs under old regime more
• FY20  fiscal deficit estimated at 3.8% against earlier estimate of 3.3% of GDP
• FY21 fiscal deficit targeted at 3.5%
• Net market borrowing estimated at 5,36 lakh crore for FY 21.
• New debt ETF instruments to be launched mostly in government securities
• FPI limit in government bonds to be raised to 15% from 9%
• Enhance partial credit for NBFCs
• Govt to raise funds via LIC IPO
• Government to divest part of LIC through an IPO
• Transfer balance of funds to GST compensation fund for 2016-18
• Revised expenditure of government pegged at Rs 26.99 lakh crore
• Nominal GDP growth projected at 10% for FY 21
• Receipts estimated at Rs 22.46 crore for FY 21
• to amend companies act to bring criminal liability in certain areas
• recruitment of common entrance tests for non gazetted posts in government
• deposit insurance scheme coverage  enhanced from rs one lakh to rs fiv elakhs
• PSBs to be encouraged to approach markets for capital funds
• To amend banking regulation act to strengthen cooperative banks
• FY 21 fiscal deficit pegged ast 3.5% of GDP, currently 3.8% in FY 20
• NRIS to be allowed ot invest in certain categories of government securities
• RBI to mull recast of MSMEs by one more year
• allocation for Rs 4,400 crore for clean air in FY 21
• Enshrine a Tax Payer Charter in the statute
• prevent tax harassment of citizens
• tax harassment cannot be tolerated
• Rs 2,500 crore allocation for [promotion of tourism in FY 21
• Rs 9,500 crore allocation for handicapped and senior citizens
• incentivise states promoting clean air in cities with population of over one million
• wealth creators will be respected in India
• National security is top priority of the government
• To shut down thermal power plants exceeding emission levels 
  allocation of Rs 85,000 cr for Schedules castes and OBCs in FY 21
• Rs 53,700 crore allocation for scheduled tribes
• Rs 28,600 crore for women centric development in FY 21
• to set up Indian institute of heritage and conservation
• five archaeological sites to developed as iconic historic sites
• maritime museum to be set up
• Rs 3,100 crore allocation for culture
• Rs 8,000 crore allocated over five years for promoting Quantum technology
• more girls benefiting under the Beti Padao scheme
• to launch two new national science schemes
• expand national gas grid to 27,000 km from 16,200 km
• to keep states share of central taxes at 42%
• Rs 35,600 cr for national nutritional programs in FY 21
• 100 more airports to be developed by Udan scheme
• 1.7 cr allocation for transport sector in FY 21
• Smart electricity meters to enable consumers to chose their power supply proivers
• Rs 22,000 crore allocation for power and renewable power sector
• Rs 6,000 crore allocated for Bharat Net FY21
• One lakh gram panchayats to be linked through Bharat FY 21
• budget to enhance income and purchasing power of people
• budget to formalize economy where the fundamentals are still strong
• budget to meet hopes and aspirations of the people inspector raj has vanished due to GST implementation
• GST most structural reform
• 60 lakh new tax payers added, 800 crore invoice uploaded, extensive engagement with tax payers.
• simplified GST tax system .
• turnaround time of trucks has reduced by 20% on back o GST synergies
• 60mlakh new tax payers added
• introducing new system of GST returns system from April one 2020
• households saved 4% on montehly spends after GST inmplmentation
• clocked GDP  growth 7.4% over 2014-19  inflation at 4.5%
• central govt debt reduce to 48.7 %  of GDP
• debate on efficacy of monetary policy now
• budget centers around economic development and caring society
• budget centres theme of aspirational india
• reconised the neeed to support
• reforms focused on yielding more space for private sector
• to improve quality of life through infraline
• aiming for seamless delivery through a digital services
• reconised the neeed to support