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Union Budget 2020-21: Key Highlights

Union Budget 2020-21: Key Highlights
Divyanshu Gupta
| Updated: Feb 01, 2020 | Category: Union Budget

As FM Nirmala Sitharaman [1] is underway to present Union Budget, we bring you the latest updates what Union Budget 2020 unfolds for you which are as follows :-

Agriculture

  • Total budget allocation for agriculture- 2.83 lakh crore
  • Budget allocation for rural development as well as Panchayati Raj- 1.23 lakh crore
  • 100 water stressed districts to have comprehensive measures
  • Less dependence on Kerosene and adoption of solar power through PM Kusum Sheme
  • Kisan Rail via PPP model to be setup
  • Model agricultural laws to be adopted by states
  • Balanced use of fertilizers to be encouraged by government
  • Mapping, geo tagging agricultural warehouses, cold storage as well as other inventory storages to be done by NABARD
  • Proposal of village storage scheme which allows farmers to store more and logistic costs also reduces
  • Aviation Ministry to launch Krishi UDAAN scheme
  • One Product one district for Horticulture
  • Integration of e-services with negotiable warehousing receipts along with its financing
  • Milk production to be enhanced to 103 metric million tonne by 2025 from existing 53.5 million metric tonne
  • Youth to be involved in Fishery sector. Fish and Farmer Organization as well as Sagar Mitras will be formed by engaging rural youth
  • Antodyaya scheme will make SHEs stronger
  • Expansion of PM KUSUM as well as Pradhan Mantri Kisan Urja Suraksha so that standalones solar pumps can be installed by 20 lakh farmers

Income Tax Rates

Income upto INR 5,00,000

No tax

INR 5-7.5 lakh

10%

INR 7.5 – 10 lakh

15%

INR 10 – 12.5 lakh

20%

INR 12.5 – 15 lakh

25%

Above INR 15 lakh

30%

Deposit Guarantee

A relief is given to the common man as deposit guarantee is raised to INR 5 lakh which was 1 lakh previously

Rail and Infrastructure

  • PPP mode will be helpful to run 110 trains. Private sector will redevelop 4 stations
  • Tourist destinations to get more Tejas trains
  • Rail track to have large solar power capacity
  • Railway stations to be commissioned with 550 wi-fi facilities
  • Completion of Delhi-Mumbai Expressway by 2023
  • Launching of Chennai-Bengaluru Expressway is expected soon
  • National Logistic policy is expected soon
  • Infrastructure sector to get project preparation facilities
  • Introduction of 100 more airports is expected
  • Industry and commerce gets a boost with 27,300 crore INR

Video Source Enterslice

Education

  • A new education policy will be introduced for which 99,300 crore INR will be available whereas for skill development, it will be INR 3,000 crore in FY21
  • Teachers, caregivers, paramedical staff, nurses to have special bridge courses 
  • Young engineers will get internship opportunities with Urban Local Bodies

Banks and economy

  • Sovereign wealth funds on investment in infra projects to attract 100% tax concession
  • Commercial Banks will be scrutinized through robust mechanism in place
  • USD 5 trillion economy is to be achieved with clean, reliable and robust financial sector
  • Allocation of 100 crore INR to host G20 Summit
  • Jammu and Kashmir to get allocated 30,757 crore INR whereas Ladakh will attract 5,958 crore INR
  • Simplified GST return will be introduced soon
  • 271 million people in India are out of poverty
  • Ujjawala Yojana and its key initiatives were emphasized
  • National Mission on Quantum Computing and Technology to get allocated INR 8,000 crore
  • The economy’s fundamentals are strong
  • Central Government debt reduces to 48.7% of GDP
  • Pradhan Mantri Faisal Bima Yojna insured over 6 crore farmers
  • Country depicts 7.4 % growth between 2014-2019
  • Pollution and climate change will be tackled by infusing INR 20,000 crore towards renewable energy sector. Air pollution problem in Delhi will be tackled a INR 4,400 crore is allocated
  • Relief for small exporters as they need to pay less insurance premium in addition to getting enhanced insurance cover under Nirvik (Niryat Rin Vikas Yojana) scheme
  • Private investors to get some stake in IDBI Bank
  • Corporate tax reduced to boost economy and kept at 22%
  • State share of central tax reduced by 1 percent
  • Amount of disputed tax is to be paid only under Vivad se Vishwas scheme

Women

  • Programmes related to women will get 28,600 crore INR
  • Marriageable age of women to be decided by a task force
  • Nutritional related programme to attract 35,600 crore
  • General category students to get apprentice training in 150 higher institutes

Healthcare

A boost to healthcare sector is expected as it is being allocated INR 60,000 crore

Power Generation companies

Power generation companies will avail concessional 15% tax rate

Housing

Affordable housing developers get tax holiday

Dividend Distribution Tax

Individuals to pay DDT instead of companies

Tax Pay charter

Tax pay charter to be introduced

Ministry of culture

Ministry of culture to get allocated INR 3150 crore

Ministry of tourism

Ministry of tourism to get allocated INR 2500 crore

SCs, OBCs and STs

  • Budget allocates INR 85000 crore for SCs and OBCs
  • Welfare of scheduled tribes is proposed as INR 53,700 crore is allocated

Senior Citizens and Divyangs

For senior citizens as well as Divyangs, INR 9500 crore is provided

Museum

  • On site museums to be introduced in Tamil Nadu, Haryana, UP, Assam as well as Gujarat
  • Ranchi, Jharkhand to have Tribal museum

Textiles

INR 1480 crore is allocated to launch National Textile Mission

Insurance

Partial stake sale in LIC is on cards

Piped water

INR 3.6 lakh crore under PM Modi’s ‘Nal se jaal’ scheme is proposed for piped water supply which will benefit households

Swatch Bharat

INR 12,300 crore stood towards allocation for Swatch Bharat

Conclusion

This budget is aimed to enhance the income and boost spending of the people. It has to be figured out what impact will Union Budget 2020 make on the economy. It is yet to be analysed whether budget has made happy to each and every individual. Stay tuned to Swarit Advisors as we will keep you updated

How will Swarit Advisors help you in regard to Union Budget 2020?

Stay tuned to Swarit Advisors as we will keep you updated.

Also, Read:What are the Major Income Tax Cuts in Union Budget 2020?

Divyanshu Gupta

A prolific writer with more than 10 years of experience across various industries like Ecommerce, Publication Houses, Information Technology and Digital Advertising firm. Good amount of knowledge for writing on various topics gives me an edge and enables to mentor and guide others in the same field. The passion to never say no gets me going and motivates me to set new benchmark for myself and perform with great zeal and endeavour.

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