In this article, come today let us have a sneak into union budget 2020 – highlights.
Development, Infrastructure and Investment:
- The nominal GDP growth rate of FY21 is pegged at 10%.
- The aspiration of India, Economic Development, Caring society are the 3 basic pillars of the union budget 2020 framework.
- Government aims to double farmers income by 2022.
- Indian Railways to setup ‘Kisan Rail’ for seamless cold supply chain for perishables
- Scheme to provide subordinate debt for working capital announced for MSMEs under Credit Guarantee Trust.
- Housing for all: To extend the date of loan sanction for availing additional deduction of Rs. 1.5 lakh by 1 year to March, 2021.
- Government to sell part of it’s stake sale in LIC India Via IPO.
- To deepen the bond market, specified categories of Govt. securities would be opened fully to foreign investors.
- The government disinvestment target doubled to whopping Rs. 2.1 lakh crores.
- 100 New airports & 5 new smart cities.
- 10,000 km gas grid.
- the Bharat Net to connect 1 lakh gram panchayats.
- Government intends to monetize 12 lots of highway bundles by 2024.
- To increase the limit of FPI’s corporate bonds from 9% to 15%.
- To hike the bank deposit insurance cover to 5 lakh from the current 1 lakh, to protect depositors in the event of bank’s collapse.
- Vivad se Vishwas: Scheme to reduce direct tax litigation. March 31, deadline for paying tax claim, avoid interest and penalty.
- Individual tax payers are now going to avail lower tax rates by forgoing certain deductions and exemptions.
- Removal of Dividend Distribution Tax – DDT that’s levied on dividends issued by companies and dividends are taxable in the hands of shareholders.
- Taxes on corporate societies proposed to be reduced to 22% plus surcharge and cess, as against 30%.
- Section 80G – donations allowed as a deductions will be pre-filled on ITR forms now on wards.
- Tax audit threshold increased to 5 crore from 1 crore.
- No changes in Long term capital gains and STT.