key factor of budget 2020-2021

today modi government has introduced budget 20-21 in parliament . our finance minister Nirmala sitharaman has introduced budget regarding 20-21 . here by mentioned some keyfactor of union budget of 2020-2021

  • spend 2.83 lakh cr to agriculture sector
  • to be open ” jan ausdhi kendra” in every district of country
  • spend 69000 cr for health sector
  • 3.60 lakh cr spend for pure water
  • 3000cr would be spend for skill devlopment
  • 12000 cr would be spend for online degree programme .

NEW INCOME TAX SLABS VS EARLIER – NO EXEMPTIONS APPLICABLE

  • 10% for income between Rs 5 lakh-7.5 lakh against 20%.
  • 15% for income between Rs 7.5 lakh-10 lakh against 20%
  • 20% for income between Rs 10-12.5 lakh against 30%
  • 25% for income between Rs 12.5 -15 lakh against 30%
  • 30% for income above Rs 15 lakh

This means lower tax rate for those in the Rs 5 to 15 lakh bracket

  • Nirmala sita raman amended IT act .
  • FM Nirmala Sitharaman that key is to reduce litigation in direct taxes. A total of 4.83 direct tax cases pending in various forums. therefor a new direct tax dispute settlement under ‘Vivad se Vishwaas Scheme’. No penalty will be charged if taxpayers pay by March 31, 2020.Here, only disputed tax amount has to be paid.
  • company act need to be amendment

FM says GST reforms will continue including a simplified return-filling form. Refund has been simplified and has been fully automated, says Nirmala Sitharaman. Aadhaar-based taxpayer verification will be enable.

  • No audit for companies with (up to) Rs 5 crore turnover will improve ease of doing business,” says CRISIL.
  • Corporate tax cut will be available for power generation companies as well. Government will grant 100% exemptions for sovereign wealth funds in infrastructure and other notified sector with minimum lock-in of three years. The rate of withholding tax has been extended to 2023 for FPIs.
  • Nirmala Sitharaman says the concessional 5% withholding tax has been extended to municipal bonds. Cooperatives are taxed at 30 percent now.
  • FM says cooperatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions
  • Nirmala Sitharaman says the concessional 5% withholding tax has been extended to municipal bonds. Cooperatives are taxed at 30 percent now.
  • FM says cooperatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions

Nirmala Sitharaman says the concessional 5% withholding tax has been extended to municipal bonds. Cooperatives are taxed at 30 percent now.

  • LIC IPO is likely to be the largest public issue in FY21 and most subscribed.
  • Sitharaman says customs duty on footwwear anf furniture is being raised. She added Make in India is giving dividends. Have made progress in medical equipments too, says FM. Government will provide health services to all. A health cess will be imposed on import of medical equipment, says FM.

100 more airports to be developed by 2025 to support UDAN scheme

Finance Minister Nirmala Sitharaman said 100 more airports will be developed by 2025 to support the UDAN scheme. Other important announcements are:

  • Rs 1.7 lakh crore has been provided for transport infrastructure in 2020-21
  • 150 trains will run under the public private partnership (PPP) mode
  • Four stations will be redeveloped with the help of the private sector
  • More Tejas type trains to connect tourist destinations
  • Under consideration is a proposal for setting up large solar power capacity alongside railway tracks
  • FM Nirmala Sitharaman says to ease deduction donation it is proposed to pre-fill information of those donating. This will result in hassle free claims for the individuals claiming tax exemptions.
  • FM Nirmala Sitharaman says to ease deduction donation it is proposed to pre-fill information of those donating. This will result in hassle free claims for the individuals claiming tax exemptions.
  • FM says that the tax proposals would bring ease of compliance and reduce litigation. Nirmala Sitharaman says a new personal income tax regime would be reduced who forego deductions and exemptions. Tax of only 10 percent will be charged to Rs 5 lakh-7.5 lakh income as against prevailing 20 percent rate. From Rs 7.5 lakh-10 lakh income, a tax rate of 15 percent against 20 percent prevailing rate. For income Rs 10-12.5 lakh, a rate of 20 percent will be charged as against 30 percent earlier. For income between Rs 12.5 lakh-15 lakh will be taxed at 25 percent as against 30 percent. For those at Rs 15 lakh plus income, tax will be 30 percent. overall 40000 cr additional burden may be arises.
  • Subordinate debt for MSMEs a big positive. 70 percent debt needs of MSMEs is for working capital,” says CRISIL.

Leave a Reply

Your email address will not be published. Required fields are marked *

Share
Share