Financial Budget 2020 for the financial year 2020-21 key highlights from Speech
Honorable finance minister Mrs. Nirmala Sitharaman has presented budget in the parliament on 1st February 2020
- Trucks turnaround time has been reduced due to GST
- 60 Lakh new tax payers added in last two years and 40 Crore returns filed under GST.
- 800 Crore invoices generated and 105 Crore e-Way bills were generated
- Between 2006-16 27 million people come out from poverty line
Announcement for Financial Year 2020-2021 in Budget 2020
Budget will move around three things i.e. Aspirational India, Economic Development and and Caring Society
- Encourage those state governments existing laws for farmers.
- Comprehensive measures for 100 water stressed districts.
- Provide 20 Lakh Farmers setting up stand alone Solar Pumps
- Encourage Balanced use of all kind of fertilizers, change incentive regime to discourage chemical component in agriculture.
- NABARD will undertake activity to take map by geo-tag warehouse capacity and support in building new warehousing capacity even at village level.
- Build seamless cold storage
- Integrated Farming System
- Financing on Negotiable Receipts
- Agriculture credit 15 lakh crore
- Under Dean Dayal Antyodi Yojna
- 2..83 Lakh Core for Irrigation
- 1.6o Lakh Crore for Aggriculture and allied Activities
- Holistic vision on healthcare, 20,000/- hospitals empanelled under Ayushman, Rs. 69,000/- crores provided for healthcare.
- Viability funding by states to be provided
- Education System need more flow of funds, govt will encourage FDI in education sector
- 150 Higher educational institute should start apprenticeship based degree
- Nation Police University and National Forensic Science University being proposed to increase quality in policing and forensic fraud identification.
- 99000 crore provided for education system in FY 20-21 and 300 Crore for Skill Development
- Investment clearance cell to be set-up to provided end to end solution
- Upcoming economic corridor
- National Technical Textile
- New Scheme NIRVIK proposed for export incentive
- Zero Defect-Zero Effect Manufacturing
- Digitally fund for exporters
- 27300 for development and industry promotion for FY 2020-21
- Digital Procurement Portal for govt. department GEM to achieve turnover or Rs. 3 lakh crore
- National Logistic Policy will soon be released
- Delhi Mumbai Express and two other projects to be completed in 2023
- 100 More airports proposed, as air traffic is growing rapidly as compared to global air traffic
- City Gas Distribution rights to be awarded
- Data is new Oil, policy to be brought to build Data Center Parks across the country
- Fiber to Home to link, 100000 gram Panchayats to be connected
- Provide 6000 crore for Bharat Net/Internet Program
- Several Measures proposed to benefit startups, propose to provide early life funding
- 8000 crore for next five years in national quantum technology under NMQTA
- 35600 crore for nutrition program for FY 2020-2021
- For Senior Citizens and Divyang 9,500/- crore provided
- 5 Archaeological sites would be developed as iconic sites as onsite museum to promote tourism
- 2500/- Crore allocated for promotion of tourism for FY 2020-2021
- Population with 1 million cities, focus to be given clean air allocation for this purpose 4,400/- crore for FY 2020-2021
- Old thermal power plants with high emission will be closed and land will be used for alternate purpose
- Tax Payers Charter to be institutionalized, Tax harassment will not be tolerated at all
- Companies Act amendment is proposed to correct and other such laws also being examined
- Contracts must be hounered govt is working for early disposal of disputes and easing recruitment for experts.
- India to host G-20 by 2022
- 5958 crore provided for newly formed UT Laddakh
- 3,50,000 core govt will infuse
- Depositors Insurance coverage from govt. has increased form Rs. 1 Lakh to 5 Lakh per depositor, means even bank goes insolvent, account holder will be paid till the deposit of Rs. 5 Lakh by government which will enhance confidence of public over banks.
- Recovery limit under SARFESAI reduced
- Scheme to provide subordinate to MSME’s counted as Quasi Equity and guaranteed by Govt.
- App Based Invoice financing products will be launched for MSME’s
- Debt Fund of Rs. 900 crore from banks would be made available
- Govt to sell stake in LIC through Stock Exchange
- Fundamental Overhaul of central govt. sponsored schemes
- Corporate tax for new manufacturing Companies brought to 15% and existing companies to 22% lowest in the world
- Govt. has exempted individual with income upto Rs. 5 lakh
- Simplified new tax regime introduced for individuals under financial budget 2020, and option to chose from old verses new one and more than 70 exemptions been removed
- Upto 2.5 Lakh Exempt
- Rs. 2.5 to 5 Lakh 5%
- Rs. 5 to 7.5 Lakh 10%
- Rs. 7.5 to 10 Lakh 15%
- Rs. 10 to 12.5 Lakh 20%
- Rs. 12.5 to 15 Lakh 25%
- Above 15 Lakh 30% without any exemption
- Dividend distribution tax current is 15% plus surcharge, Company will need not to pay DDT, recipient will required to pay tax in their hands and remove cascading effect credit of DDT will also be allowed to foreign investors or shareholder.
- To make foreign funds available interest paid withholding tax rate reduced to 5%
- Startups has emerges as engines of growth of country
- Startup definition limit increased to 100 crore from 25 crore
- Co-operative societies to be taxed at 22%
- Tax Audit Limit under section 44AB of the Income Tax has been increased from 1 Crore to 5 Crore for small retailer, trader and shopkeepers
- Limit of difference between circle rate and transaction value in capital gain on property has been increased from 5% to 10%
- For registration of charitable organisation completely electronic and provisional registration also provided for 3 years if charitable activities to be started
- Face-less assessment scheme and Faceless Appeals will also be possible
- Vivad se Vishwash Scheme (No dispute but trust Scheme), Just pay disputed tax amount and no interest or penalty till 31st March, 2020 thereafter this scheme will remain 30th June, 2020 with some interest or penalty.
- 4,83,000 direct tax cases pending at various tax forums like Appellate and ITAT and courts
- Instant PAN through Aadhar
- Simplified GST returns to be implemented form April, 2020
- Aadhar based verification of taxpayers to be implemented
- Deep Data Analysis and Analytics being used to track down wrong credit been taken
- Rules origine to be strictly followed
- Medical Equipment we were dependent on import but now exporting
- Health Cess to be added in customs duty on import of medical equipment to promote domestic manufacturing
Vikas Singh Chauhan
Disclaimer: this post is based on speech interpretation and listening live, no opinion should be formed on this and VMR, detailed analysed budget documents will be issued by ministry of finance.