From big relief to individual taxpayers to 16-point action plan for farmers, finance minister Nirmala Sitharaman made a slew of big-ticket announcements in Modi 2.0 government’s second Union Budget. “Wanted to touch every section of society with this Budget, wanted to show that we are a responsible government,” said FM Nirmala Sitharaman.
Budget 2020 Highlights India:
- The income tax rates have been revised for those who forego reliefs, exemptions-
5% tax for income between ₹ 2.5-5 lakh
10% tax for income between ₹ 5.0-7.5 lakh as against 20%
15% tax for income between ₹ 7.5-10 lakh as against 20%
20% tax for income between ₹ 10.0-12.5 lakh as against 30%
25% tax for income between ₹ 12.5-15 lakh as against 30%
30% tax for income above ₹ 15 lakh
- Insurance cover for bank depositors raised from ₹ 1 lakh to ₹ 5 lakh.
- Government to sell part holding in LIC. Besides, govt to also sell stake in IDBI Bank to private investors.
- Corporate tax for existing companies slashed to 22 percent. Govt proposes a 100 percent tax concession to sovereign wealth funds on investment in infra projects. Moreover, the concessional tax rate of 15 percent extended to power generation companies.
- Nirvik (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce the premium for small exporters.
- ₹ 20,000 crore for the renewable energy sector in a bid to tackle pollution and climate change. A new scheme of smart meters will be launched.
- ₹ 99,300 crores allocated for education in FY21. Govt will start Ind-Sat Exam to promote study in India and a degree-level online education program for the deprived. A total of ₹ 3,000 crores will be given for skill development. 150 higher education institutions to offer apprenticeship diplomas by March 2021. The government will promote the ‘Study In India’ initiative.
- Union Budget 2020 provided an additional ₹ 69,000 crores for the health sector. Finance Minister proposed to attach a medical college to a district hospital in the PPP model.
- 100 more airports to be developed by 2025, says Sitharaman. The FM also said 1,150 trains will run under the public-private partnership (PPP) model, also four stations will be redeveloped with the help of the private sector.
- Over 6 crore farmers under Pradhan Mantri Fasal Bima Yojna have been insured. Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM KUSUM) to be expanded, providing 20 lakh farmers in setting up standalone solar pumps.
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