Finance Minister Nirmala Sitharaman presented the Union Budget structured on the overall theme of “ Ease of Living”. Further, three prominent themes of the budget are −
Aspirational India: Better standards of living with access to health, education and better jobs for all sections of the society.
Economic Development for all: “Sabka Saath, Sabka Vikas, Sabka Vishwas”.
Caring Society: Both humane and compassionate.
Rs. 15 lakh crore target set for the year 2020-21.
PM-KISAN beneficiaries to be covered under the KCC scheme.
Rs. 1 lakh crore fisheries’ exports to be achieved by 2024-25.
200 lakh tonnes fish production targeted by 2022-23.
3477 Sagar Mitras and 500 Fish Farmer Producer Organisations to involve youth in fisheries extension.
Kisan Rail to be setup by Indian Railways through PPP to build a seamless national cold supply chain for perishables.
Krishi Udaan to be launched by the Ministry of Civil Aviation.
One-Product One-District for better marketing and export in the Horticulture sector.
Jaivik Kheti Portal – online national organic products market to be strengthened.
PM – KUSUM to be expanded.
Financing on Negotiable Warehousing Receipts (e-NWR) to be integrated with e-NAM.
Deen Dayal Antyodaya Yojana – 0.5 crore households mobilised with 58 lakh SHGs for poverty alleviation.
In Livestock, doubling of milk production capacity, and increase in artificial insemination sought.
Jan Aushadhi Kendra Scheme to offer 2000 medicines and 300 surgicals in all districts by 2024.
TB Harega Desh Jeetega campaign launched - commitment to end Tuberculosis by 2025.
Commitment to ODF - Plus in order to sustain ODF behaviour.
Rs. 69,000 crore allocated for overall Healthcare sector.
New Education Policy to be announced soon.
National Police University and National Forensic Science University proposed for policing science, forensic science, and cyber-forensics.
Up to 1-year internship to fresh engineers to be provided by Urban Local Bodies.
Ind-SAT proposed for Asian and African countries as a part of Study in India program.
Rs. 99,300 crore for education sector and Rs. 3,000 crore for skill development in 2020-21 is allotted.
Investment Clearance Cell proposed to be setup.
National Technical Textiles Mission to be setup to position India as a global leader in technical textile.
New scheme NIRVIK to be launched to achieve higher export credit disbursement. All Ministries to issue quality standard orders as per PM’s vision of “Zero Defect-Zero Effect” manufacturing.
Rs.27,300 crore allocated for 2020-21 for development and promotion of Industry and Commerce.
National Infrastructure Pipeline - More than 6,500 projects across sectors, to be classified as per their size and stage of development.
A National Logistics Policy to be released soon.
National Skill Development Agency to give special thrust to infrastructure - focused skill development opportunities.
Rs.100 lakh crore to be invested on infrastructure over the next 5 years.
Expansion of national gas grid from the present 16,200 km to 27,000 km proposed.
Rs.22,000 crore proposed for power and renewable energy sector in 2020-21.
Policy to enable private sector to build Data Centre parks throughout the country.
Rs.6,000 crore proposed for Bharat net programme in 2020-21.
Mapping of India’s genetic landscape - Two new national level Science Schemes to be initiated to create a comprehensive database.
Knowledge Translation Clusters to be set up across different technology sectors including new and emerging areas.
Rs.8,000 crore proposed over five years for National Mission on Quantum Technologies and Applications.
Deposit Insurance and Credit Guarantee Corporation (DICGC) permitted to increase Deposit Insurance Coverage to Rs. 5 lakh from Rs.1 lakh per depositor.
Co-operative Banks to be strengthen by amending Banking Regulation Act.
NBFCs eligibility limit for debt recovery reduced from − Rs. 500 crore to Rs. 100 crore asset size, Rs. 1 crore to Rs. 50 lakh loan size.
Government to sell its balance holding in IDBI Bank to private, retail and institutional investors through the stock exchange.
FPI limit in corporate bonds increased to 15% from 9% of its outstanding stock.
Debt Based Exchange Traded Fund expanded by a new Debt-ETF consisting primarily of Government Securities.
An International Bullion exchange(s) to be set up as an additional option for trade by global market participants with the approval of regulator.
Government to sell a part of its holding in LIC by way of Initial Public Offer (IPO).
For year 2020-21:Nominal growth of GDP estimated at 10%.
Fiscal deficit of 3.8% estimated in RE 2019-20 and 3.5% for BE 2020-21.
Around 70 of the existing exemptions and deductions (more than 100) to be removed in the new simplified regime.
Corporate Tax- Tax rate of 15% extended to new electricity generation companies.
Dividend Distribution Tax - DDT removed making India a more attractive investment destination.
Start-ups - Start-ups with turnover upto Rs. 100 crore to enjoy 100% deduction for 3 consecutive assessment years out of 10 years.
MSMEs - Turnover threshold for audit increased to Rs. 5 crore from Rs. 1 crore for businesses carrying out less than 5% business transactions in cash inorder to boost less cash economy.
Co-operative societies exempted from Alternate Minimum Tax (AMT) just like Companies are exempted from the Minimum Alternate Tax (MAT).
Affordable Housing - Additional deduction up to Rs. 1.5 lakhs for interest paid on loans taken for an affordable house extended till 31st March, 2021.
Income Tax Slabs for individuals below 60 years of age under new tax regime – Applicable to FY 2020-21 (AY 2021-22). The tax calculated on the basis of such rates will be subject to health and education cess of 4%. Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.
|Income Tax Slab||Tax Rate|
|Up to Rs 2.5 lakh||NIL|
|Rs 2.5 lakh to Rs 5 lakh||5%|
|Rs 5 lakh to Rs 7.5 lakh||10%|
|Rs 7.5 lakh to Rs 10 lakh||15%|
|Rs 10 lakh to Rs 12.5 lakh||20%|
|Rs 12.5 lakh to Rs 15 lakh||25%|
|Rs 15 lakh and above||30%|