What Are Key Takeaways Of Union Budget 2020? Here's What You Must Know (Photo Credit: IANS Photo)
In her 2 hour, 21 minute long Union Budget speech, Union Finance Minister Nirmala Sitharaman tried to cheer up the public sentiments and introduced slew of measures to boost the market liquidity. While the verdict is still out on the Union Budget, the initial reactions show that people are not exactly happy about Sitharaman’s roadmap. The Income Tax Regime was the highlight of the Budget. Offering an optional lower rate of income tax to individuals, Sitharaman in her Budget for 2020-21 proposed new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent. The new I-T slabs would be for individuals not availing certain specified deductions or exemptions.
Under the proposed I-T slab, annual income up to Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent. However, the details in the new regime dampened the early cheer.
These are the key highlights of the Union Budget 2020:
To boost growth, Sitharaman announced higher spendings on infrastructure, rural development and agri sector. The Finance Minister said the government is proposing a 16-point action plan to boost agriculture and farmers' welfare.
Agricultural services need copious investments, she said, adding government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojna. With her post 2019-20 Budget corporate tax cut drilling a Rs 1.45 lakh crore hole in government revenues, the minister hiked the fiscal deficit target for current fiscal to 3.8 per cent of GDP, from 3.3 per cent. For 2020-21, she pegged the fiscal deficit at 3.5 per cent.