Budget 2020 | New Simplified Income Tax Regime Introduced

Nirmala Sitharaman - Sakshi Post

NEW DELHI: Finance Minister Nirmala Sitharaman is presenting the Union Budget 2020-21 at the Parliament on Saturday. The Union Cabinet headed by Prime Minister Narendra Modi on Saturday approved the Budget for the financial year beginning April 1, that may see measures to lift the economy from the worst economic slowdown in 11 years.

LIVE UPDATES:

1.40 pm: Finance Minister ends speech.

Under Vivad Se Vishwas Scheme, taxpayer to pay only amount of disputed tax, will get complete waiver on interest and penalty, if scheme is availed by March 31, 2020: FM

  • Sensex at 40,688.28, down by 35.21 points


In order to promote affordable housing projects, I propose to extend date of approval of affordable housing projects for availing tax holiday by one more year: FM

Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates: FM

A person earning Rs 15 lakh per annum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh: FM

  • Big boost for start-ups:  Employee stock ownership plan

Taxes on ESOPs (Employee Stock Ownership Plant) deferred by 5 years

  • The government has slashed the income tax rates to 10% from existing 20% for those earning between Rs 5 lakh to 7.5 lakh and 15% for those earning between Rs 7.5 lakh and 10 lakh as compared to the existing 30%.
  • For earnings between Rs 10 lakh to 12.5 lakh, the tax rates have been slashed to 20% tax from existing is 30%.
  • A person earning Rs 15 lakh per anum is now paying Rs 2.73 lakh now and from next financial year he has to pay only Rs 1.95 lakh, which means Rs 78,000 tax relief
  • New simplified income tax regime introduced
    Income from Rs 7.5-10 lakhs to be taxed 15%
    Income upto Rs 10-12.5 lakhs to be taxed 20%
  • We propose to bring a personal income tax regime, where income tax rates will be reduced, so now, person earning between Rs 5-7.5 lakhs will be required to pay tax at 10% against current 20%.
  • We estimate a fiscal deficit of 3.8% in RE 2019-20 and 3.5% for BE 2020-21 : FM

We have estimated nominal growth of GDP for the year 2020-21 on the trends available, at 10%|: FM

  • Government proposes to sell a part of its holding in LIC by initial public offer: FM


  • New Scheme for subordinate debt for MSMEs and App-based invoice financing for MSMEs will be created
  • To address liquidity constraints, infrastructure financing will be encouraged
  • On financial markets: NRIs and Domestic can invest in Corporate Bonds
  • Depositors money is safe, deposit insurance coverage has been increased from Rs.1 lakh to Rs 5 lakh
  • Wealth creators will be respected in India
  • Govt. proposes changes to Companies Act
  • Sensex stabilizes after initial dips
  • India will host G-20 presidency in the year 2022; Rs 100 crores allocated for preparation: FM
  • Allocation of Rs 30,757 crores for 2020-21 for Jammu and Kashmir


  • Tax Payers Charter is our statue and no tax harassment from government: FM
  • Brief uproar In Parliament when spoken about good governance
  • Rs 4400 Cr allocation for climate change policy: FM
  • National Security is our top priority, affirms Finance Minister

FM: Tribal museum to be set up in Ranchi

FM: 4 more museums to be taken up for renovation

  • Iconic Sites

Five Archaeological Sites will be recognized as Iconic Sites that includes Haryana, UP, Assam, Gujarat and Tamil Nadu.

  • Allocations
  • Rs 85,000 cr for SC and backward classes
  • Rs 53, 700 cr for STs
  • Rs 9,500 cr for Divyang and senior citizens
  • Rs.35,600 crores for National Nutrition Programme: FM
  • Lok Sabha speaker turns down the opposition's plea to intervene in Budget Speech
  • Markets Turn Red, Sensex down by 89 points

12.12 pm: Beti Bachao, Beti Padhao has yielded tremendous results.

Gross Enrollment Ratio of girls is now higher than boys.

  • At elementary level: 94.32 pc girls against 89.28 pc for boys
  • Secondary: 81.31pc for girls - 78 for boys
  • Higher Secondary: 59.70 pc -57.54 pc for boys
  • When Finance Minister started talking about "Beti Padao-Beti Bachao", there was uproar in the house from opposition
  • Optical Fiber in connectivity in One Lakh Gram Panchayats across the country
  • National Quantum Technology Mission will be set up in coming 5 years with an outlay of Rs.8000 crore
  • 100 new Airports by 2022, says Finance Minister

Data-Center Parks for IT development and also to rapidly pursue Artificial Intelligence will be set up throughout the country.

12.10 pm: Oil and Gas Sector, 1,37,000 square kilometers of exploration to private sector. Under National Gas Grid policy the government wants to expand the present gas grid from 16,200 to 27,000 kms.

  • Rs 22,000 cr to power and renewable energy: FM
  • Aim to achieve 11,000 Km of track electrification. 4 Station redevelopment projects under PPP Model and Solar power capacity along the railway lines: FM
  • Rs 1 lakh crore for Infrastructure Facilities. National Logistic Policy with e-logistic facility is proposed
  • Investment Clearance Cell will be created
  • Proposed to raise Fish Production to 200 lakh tonnes
  • Rs.11,500 crore will be allocated for Jal-Jeevan and Rs.12,300 cr for "Swacch Bharat": FM
  • National Textile Mission with Rs. 1480 crores will be set up: FM
  • Rs.69,000 crore for Health Sector and Union Govt will do Viability Gap Funding to set up District Level Medical Colleges under Public-Private-Partnership
  • National University for Police to be set up in this new financial year
  • Rs.99,300 crore for education and Rs.3000 crore for Skill Development Schemes
  • Jal Jeevan Mission: Govt will allocated Rs 3.60 lakh crore for this mission
  • TB Harega, Desh Jeetaga: TB campaign, to eradicate TB by 2025.

ALLOCATION:

  • Rs 2.83 lakh crore allocation for agriculture and irrigation: FM Nirmala Sitharaman
  • 11.30 am: Krishi Udaan under Ministry of Civil Avaition on international and national routes to benefit farmers: FM

Our government is proposing comprehensive measures for 100 water-stressed districts in the country: FM

  • "3 guiding factors of this Budget"
    "We recognize the need to energize Indian entrepreneurship spirit. The three guiding factors of this Budget are aspirational India, economic development for all and ours should be a caring society," Nirmala Sitharaman said.

60 lakh new tax payers added in last financial year and 40 crore GST returns filed: FM

11.20 am: Aspirational India: Govt. Committed of doubling farmer Income by 2022

  • Sitaraman reads out a poem on Kashmir in her speech with thumping from treasury benches
  • Several steps on formalisation of economy have been taken up: FM


Central government's debt has come down to 48.7% in March 2019 from 52.2% in March 2014: FM

  • Fundamentals of the economy are strong, Inflation has been well contained: FM Nirmala Sitharaman
  • 11.10 am: Our people should be gainfully employed: FM


11.01 am: “People have reposed faith in our economic policy” FM


11 am: Nirmala Sitharaman begins Union Budget speech.

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