Finance Minister Niramala Sitharaman today introduced a new optional personal Income tax system, abolished Dividend distribution tax, a new tax dispute settlement scheme and unveiled a 16-point plan to revive growth in the country. She said this Budget will boost income and purchasing power of the people. Finance minister also raised the bank depositors insurance coverage to Rs 5 lakh from Rs 1 lakh.
Here are all the key highlights from Budget speech:
New optional tax slabs: New income tax slabs will be available for those who forgo exemptions
Taxable income slabs
Up to Rs 5 lakh - Nil
Rs 5 Lakh to Rs 7.5 Lakh - 10%
Rs 7.5 lakh to Rs 10 lakh - 15%
Rs 10 lakh to Rs 12.5 lakh - 20%
Rs 12.5 lakh to Rs 15 lakh - 25%
Rs 15 lakh and above30%
To simplify the tax system and lower tax rates, around 70 of more than 100 income tax deductions and exemptions have been removed.
Dividend Distribution Tax (DDT) abolished; Companies will not be required to pay DDT; dividend to be taxed only at the hands of recipients, at applicable rates..
15% tax rate for new power generation companies.
Tax on cooperative societies reduced to 22% without exemptions.
To end Tax harassment, new taxpayer charter to be instituted. Tax harassment will not be tolerated, says FM.
Proposes to amend Companies Act to bring criminal liability in certain areas.
To amend I-T Act to allow faceless appeals.
To launch new direct tax dispute settlement scheme -- Vivaad se Vishwaas scheme.
Interest and penalty will be waived for those who wish to settle the dispute till March 31.
Govt to look at ensuring that contracts are honoured.
Proposes new National Policy on Official Statistics to improve data collection and dissemination with the help of tech.
Tax holiday for affordable housing extended by 1 year.
Govt plans to raise funds via Life Insurance Corporation (LIC) initial public offer.
NRI will be allowed to invest in certain G-sec.
FPI limit in corporate bonds raised to 15% from 9%.
Govt doubles divestment target for the next fiscal at Rs 2.1 lakh crore.
FY20 fiscal deficit revised to 3.8% from 3.3% in the current fiscal.
For FY21, fiscal target seen at 3.5%.
Net market borrowing for FY20 at Rs 4.99 lakh crore; For FY21 it's pegged at Rs 5.36 lakh crore.
To help bank depositors, govt increases depositor insurance to Rs 5 lakh from current Rs 1 lakh.
Encourage PSBs to approach capital markets for fund raising.
Banking Regulation Act to be amended to strengthen Cooperative banks.
National recruitment agency: New common entrance test for government non-gazetted jobs and public sector banks.
5 new Smart cities to be set up via PPP model.
Rs 1.7 lakh crore allocated to transportation
100 more airports to be set up by 2024 to support UDAN scheme
Accelerated development of highways will be undertaken; Delhi-Mumbai expressway and two other projects to be completed by 2023.
NHAI to monetize 12 lots of highway bundles of over 6,000 km before 2024.
Young engineers and management graduates will be roped in for infrastructure projects under Project Preparation Facility.
National Logistics Policy will soon be released, creating single window e-logistics market
Rs 6,000 crore for Bharatnet programme; Fibre to Home connections under Bharat Net will be provided to 1 lakh gram panchayats this year itself
New policy for private sector to build Data Centre Parks.
5 archeology sites to be developed for world-class museums
Rs 2,500 crore for tourism promotion.
National gas grid will be expanded to 27,000 km from 16000 km
Rs 22,000 crore to power and renewable energy
FM urges all states and UTs to replace conventional energy meters by pre-paid smart meters in 3 years, this will give consumers the freedom to choose supplier and rate as per their requirements.
Advise to shut thermal plants if they don't meet emission norms.
5 measures for Railways:
Large solar power capacity to be set up alongside rail tracks, on land owned by Railways
More Tejas-like trains for tourists.
150 new train to be introduced on PPP basis; Four stations will be also be redevelopment with the help of PPP.
Launches Rs 186, 00 crore worth Bengaluru suburban transport project; 20% equity will be provided be the Centre.
Aspirational India: Agriculture-- 16 action points to aid farmers
Agriculture market needs to be liberalised; govt proposes to handhold farmers, says FM
Comprehensive measures for 100 water-stressed districts being proposed
Govt will help 20 lakh farmers for setting up solar pumps.
Farm market will to be liberalized.
PM Kusum scheme will be expanded to 20 lakh farmers.
Supporting states to focus on one product for one district so as to make way for Horticulture to gain momentum
Change in incentive scheme for chemical fertilisers. We will encourage balanced use of all fertilizers, a necessary step to change the incentive regime which encourages excessive use of chemical fertilizer
Will help 15 lakh farmers to set up solar sets.
Krishi UDAN scheme for agri exports on international and national routes. This will also improve value realization in North East and tribal districts.
Railways will set up Kisan Rail through PPP arrangement, for transportation of perishable goods.
For better marketing and export, supporting states will focus on one product for one district, so that high focus is given at district level for horticulture to gain momentum
Zero Budget farming focus of the government.
Viability gap funding to be provided for setting up warehouses.
Financing on Negotiable Warehousing Receipts to be integrated with e- National Agricultural Market
Rs 2.83 lakh crore allocated to agriculture and irrigation
Rs 1.23 for Rural development and Panchayti Raj
Agri credit target raised to Rs 15 lakh crore from Rs 12 lakh crore.
Milk processing capacity to be doubled to 108 tonne from 53 tonne by 2025.
NABARD Refinancing Scheme to be further expanded.
MGNREGS to be used to develop fodder farm.
Will further expand on SHGs for alleviation of poverty.
Fisheries: Framework for development, management and conservation of marine fishery resources to be put in place.
Fish production to be raised to 200 lakh tonnes by 2022-23
Youth and fishery extension work to be enabled by rural youth as Sagar Mitras, forming 500 fish farmer producing organizations.
Rs 3.6 lakh crore allocated to water sanitation and pipeline project; Rs 12,300 crore for Swachh Bharat.
Our government is committed to Open Defecation Free country, in order to sustain ODF behaviour and to ensure no one is left behind.
Rs 99,300 crore allocated for education sector, Rs 3,000 crore rupees for skill development
Urban local bodies to provide internships for young engineers for a period of up to one year.
External commercial borrowings and FDI to be leveraged to improve the education system.
A medical college to be attached to a district hospital in PPP mode, viability gap funding to be set up for setting up such medical colleges.
US-like SAT exam to be held in African and Asian countries for benchmarking foreign candidates who wish to Study In India
Degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework
New Education Policy to be announced soon.
To launch 2 new National science scheme
Rs 69,000 crore allocated to healthcare sector.
Indradhanush immunization plan expanded to cover 12 new diseases,.
Viability gap funding window to be set up to cover hospitals, with priority given to aspirational districts that don't have hospitals empanelled under Ayushman Bharat.
Propose Rs 35,600 crore nutrition-related plan.
Over 6 lakh anganwadi workers have been equipped with smartphones to upload the nutrition status of 10 crore households.
Rs 4,400 crore for clean air
Rs 53,700 crore to ST schemes
Rs 85,000 crore for SC, OBCs schemes
Rs 9,500 crore for senior citizens scheme
Receipts for 2020-21 estimated at Rs 22.46 lakh crore
Expenditure at Rs 30.42 lakh crore
India will host G20 Presidency in 2022, Rs 100 crore to be allocated for making preparations for this historic occasion, where India will drive global economic agenda
This is the Budget to boost income and purchasing power of Indians, says Sitharaman.
This Budget is woven around three prominent themes: Aspirational India; Economic Development for All; A Caring Society
Proliferation of technologies such as analytics, machine learning, Artificial Intelligence, bioinformatics and number of people in productive age group at its highest, point out two cross-cutting developments.
Sitharaman cites a poem -- Pyara Watan.
Budget aims to meet hopes and aspirations of all the sections of the society.
Govt has taken several steps to formalisation of economy.
Govt wants to improve the life of the people through Rs 100 lakh crore infrastructure pipeline projects.
FM terms GST as historic structural reform; says it integrated country economically
GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted MSME Consumers who have got a annual benefit of Rs 1 lakh crore by GST.
6 million new taxpayers have been added.
Average household now saves nearly 4% more on the monthly basis after implementation of GST.
Govt says aim is to achieve seamless delivery of services through digital governance.
GST resulted in Rs 1 lakh crore gains to consumers, removed inspector raj and helped transport sector.
India uplifted 271 million people out of poverty.
India is now 5th largest economy in world.Central Govt debt reduced to 48.7% of GDP from 52.2 per cent in March 2014
We shall strive to bring ease of living for every citizen
7.4% growth surpassed in 2014-19 with average inflation of 4.5%.
Centre's debt down from 52.2% in 2014 to 48.7% in 2019
During 2014-19, govt brought paradigm shift in governance.
Fundamentals of economy strong, inflation well contained, banks cleaned up accumulated loans.
Finance Minister lists out welfare schemes like affordable housing scheme, DBT and Ayushman Bharat
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