Union Budget 2020-21 Highlight With Details, Income Tax Slabs, Budget 2020 Key Features

Union Budget 2020-21 Highlight With Details, Income Tax Slabs, Budget 2020 Key Features

Union Budget 2020-21 Highlight With Details, Income Tax Slabs, Budget 2020 Key Features

Union Budget 2020-21 Highlight With Details: Interim Union Budget 2020-21 was presented in Parliament today by the Union Finance Minister Smt. Nirmala Sitharaman. 

The Key Highlights of Union Budget 2020-21 are as follows:

Three prominent themes of the Budget

1. Aspirational India - better standards of living with access to health, education and better jobs for all sections of the society
2. Economic Development for all - “Sabka Saath , Sabka Vikas , Sabka Vishwas”.
3. Caring Society - both humane and compassionate; Antyodaya as an article of faith.

Three broad themes are held together by:

• Corruption free, policy-driven Good Governance.
• Clean and sound financial sector.

Ease of Living underlined by the three themes of Union Budget 2020-21.

Three components of Aspirational India:

• Agriculture, Irrigation, and Rural Development
• Wellness, Water, and Sanitation
• Education and Skills
• Sixteen Action Points for Agriculture, Irrigation and Rural Development

Union Budget 2020-21 for Agriculture, Irrigation and Rural Development: 

Rs. 2.83 lakh crore to be allocated for the following 16 Action Points:

• Rs. 1.60 lakh crore for Agriculture, Irrigation & allied activities.
• Rs. 1.23 lakh crore for Rural development & Panchayati Raj. 

Agriculture credit:

• Rs. 15 lakh crore target set for the year 2020-21.
• PM-KISAN beneficiaries to be covered under the KCC scheme.
• NABARD Re-finance Scheme to be further expanded. Comprehensive measures for 100 water-stressed districts proposed.

Blue Economy:

• Rs. 1 lakh crore fisheries’ exports to be achieved by 2024-25.
• 200 lakh tonnes fish production targeted by 2022-23.
• 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations to involve youth in fisheries extension.
• Growing of algae, sea-weed and cage culture to be promoted.
• Framework for development, management and conservation of marine fishery resources.

Kisan Rail to be setup by Indian Railways through PPP:

• To build a seamless national cold supply chain for perishables (milk, meat, fish) etc.
• Express and Freight trains to have refrigerated coaches.

Krishi Udaan to be launched by the Ministry of Civil Aviation:

• Both international and national routes to be covered.
• North-East and tribal districts to realize Improved value of agri-products.

Union Budget 2020-21 For Education and Skills: 

• Rs. 99,300 crore for education sector and Rs. 3000 crore for skill development in 2020-21.
• New Education Policy to be announced soon.
• National Police University and National Forensic Science University proposed for policing science, forensic science, and cyber-forensics.
• Degree level full-fledged online education program by Top-100 institutions in the National Institutional Ranking Framework.
• Up to 1-year internship to fresh engineers to be provided by Urban Local Bodies.
• Budget proposes to attach a medical college to an existing district hospital in PPP mode.
• Special bridge courses to be designed by the Ministries of Health, and Skill Development:

1. To fulfill the demand for teachers, nurses, para-medical staff and care-givers abroad.
2. To bring in equivalence in the skill sets of the workforce and employers’ standards.

• 150 higher educational institutions to start apprenticeship embedded degree/diploma courses by March 2021.
• External Commercial Borrowings and FDI to be enabled for education sector.
• Ind-SAT proposed for Asian and African countries as a part of Study in India program. Economic Development

Union Budget 2020-21 For Indian Railways:

Five measures:

1. Large solar power capacity to be set up alongside rail tracks, on land owned by railways.
2. Four station re-development projects and operation of 150 passenger trains through PPP.
3. More Tejas type trains to connect iconic tourist destinations.
4. High speed train between Mumbai and Ahmedabad to be actively pursued.
5. 148 km long Bengaluru Suburban transport project at a cost of Rs 18600 crore, to have fares on metro model. Central Government to provide 20% of equity and facilitate external assistance up to 60% of the project cost.

Indian Railways’ achievements:

• 550 Wi-fi facilities commissioned in as many stations.
• Zero unmanned crossings.
• 27000 Km of tracks to be electrified.

Union Budget 2020-21 For Culture & Tourism: 

Allocation of Rs. 2500 crore for 2020-21 for tourism promotion.

• Rs.3150 crore proposed for Ministry of Culture for 2020-21.
• An Indian Institute of Heritage and Conservation under Ministry of Culture proposed; with the status of a deemed University.

5 archaeological sites to be developed as iconic sites with on-site Museums:

1.  Rakhigarhi (Haryana)
2.  Hastinapur (Uttar Pradesh)
3.  Shivsagar (Assam)
4.  Dholavira (Gujarat)
5.  Adichanallur (Tamil Nadu)

• Re-curation of the Indian Museum in Kolkata, announced by Prime Minister in January 2020.
• Museum on Numismatics and Trade to be located in the historic Old Mint building in Kolkata.
• 4 more museums from across the country to be taken up for renovation and re-curation. Support for setting up of a Tribal Museum in Ranchi (Jharkhand).
• Maritime museum to be set up at Lothal- the Harrapan age maritime site near Ahmedabad, by Ministry of Shipping.
• State governments expected to develop a roadmap for certain identified destinations and formulate financial plans during 2021 against which specified grants to be made available to the States in 2020-21.

Union Budget 2020-21 New Income Tax Slabs: 

• Union Finance Minister Smt. Nirmala Sitharaman proposed 10% tax on income between 5 lakh and 7.5 lakh form 20%.
• Income between 7.5 lakh to 10 lakh a lower tax of 15% from 20%.
• Income between 10 lakh to 12.5 lakh, the income tax rate has been reduced to 20% from 30%.
• Income between 12.5 lakh to 15 lakh, the income tax rate has been reduced to 25% from 30%.
• Income above 15 lakh would continue to pay the tax at the current rate of 30%.

Union Budget 2020-21: Indirect Tax

GST:

• Cash reward system envisaged to incentivise customers to seek invoice.
• Simplified return with features like SMS based filing for nil return and improved input tax credit flow to be implemented from 1st April, 2020 as a pilot run.
• Dynamic QR-code capturing GST parameters proposed for consumer invoices.
• Electronic invoice to capture critical information in a centralized system to be implemented in a phased manner.
• Aadhaar based verification of taxpayers being introduced to weed out dummy or non-existent units.
• GST rate structure being deliberated to address inverted duty structure.

Customs Duties:

• Customs duty raised on footwear to 35% from 25% and on furniture goods to 25% from 20%.
• Basic customs duty on imports of news print and light-weight coated paper reduced from 10% to 5%.
• Customs duty rates revised on electric vehicles and parts of mobiles.
• 5% health cess to be imposed on the imports of medical devices, except those exempt from BCD.
• Lower customs duty on certain inputs and raw materials like fuse, chemicals, and plastics.
• Higher customs duty on certain goods like auto-parts, chemicals, etc. which are also being made domestically.[PIB]

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