01/02/2020
Budget 2020 key highlights
* GST bring synergy in logistics sector (20% time reduction)
* 60 lakhs new taxpayers added via GST introduction
* New simplified GST returns from April 2020
* FDI elevated during period 2014-2019 to $284bn
* Central government debt reduced to 48.7% of GDP in 2019
* 16 points action plan for agricultural & irrigation sector under aspirational India
* New Education Policy will be announced soon
* ECB and FDI will open in education sector
* Degree level full fledged online programs to be started
* National Police University & Forensic university is proposed to be set up
* INR 99,300 cr proposed for education sector
* Investment clearance cell to be set up to facilitate investments and to provide advisory at State as well as Centre level
* 5 new smart cities to be developed
* Move to develop each district an export hub
* INR 27,300 cr for promotion of industry & commerce
* National logistics policy to be released soon
* Digital refund of duties to exporter
* Setting up of solar panels on barren lands
* More Tejas types train to be introduced to connect iconic cities
* 100 more Airports to be developed by 2024
* Proposed to states to replace old electric meters to the smart pre-paid electric meters. This will give flexibility to consumer to choose service provider.
* INR 22,000 cr proposed for power & renewal energy sector
* Private sectors to built data centre parks throughout the country, policy may come soon
* INR 6,000 cr proposed for 'Bharat Net'
* Funding for ideation and start up
* INR 28,600 cr proposed in this budget specific to women
* Proposed to set up Indian Institute of Heritage & culture as a deemed university
* 5 Archeological sites would be developed as iconic sites with onsite museums
* Setting up of Tribal Museum in Ranchi, Jharkhand
* INR 2,500 cr proposed for development of Tourism sector
* Taxpayer's charter to be a part of statute to build confidence/trust
* Government will ensure that citizens need not worry about tax harassment. There is a debate on building criminal liabilites for civil acts. Companies Act will be amended to correct this
* India to host G20 presidency in 2022; INR 100 cr allocated for preparation
* Robust mechanism is in place to monitor health of all scheduled banks
* Insurance cover for deposits increased from INR 1 lakh to 5 lakh
* Universal pension coverage with auto enrollment to be introduced (through PFRDI) to every person
* Invoice financing by NBFCs to MSME sector - Amendments to be made in Factoring Act
* Certain amendments to be made in SARFESI Act
* Non residents can invest in certain Government securities
* Liquidity constraints of NBFCs & HFCs will be addressed - Government has taken steps from last year
* International Buillion exchange to be setup in GIFT IFSC
* LIC initial public offer will come to list on stock exchange; Government will sell part of its holding
*Part-B - Tax Proposals*
* Personal income tax - proposed to bring new income-tax regime for individual Taxpayer's
New slab rate (without exemption)
10% - income 5 - 7.5 lakhs
15% - 7.5 - 10 lakhs
20% - 10 - 12.5 lakhs
25% - 12.5 - 15 lakhs
30% - Above 15 lakhs
Income upto 5 lakhs no tax, says FM
* if individual ears income of 15 lakhs then tax would be 1.95 lakh vis-a-vis 2.73 lakhs as earlier
* New scheme of individual tax rates is optional
* FM says - reviewed all existing income tax exemptions and removed 70 of them in new regime and will review remaining and rationalize
* Propose to remove DDT and dividend would be taxable in the hands of shareholders; removal of cascading effect of dividend distributed by holding to subsidiary (25k cr revenues forgone on account of DDT abolishion)
* Concessional tax rate for electricity/power generation companies
* 100% tax exemption on new investment by foreign funds in infrastructure sector by 2024 with a minimum lock in period of 3 years
* ESOPs given by startups to employees currently taxed as perquisites; deffering of tax payment by employees to 5 years
* Increase in turnover limit from 25 cr to 100 cr for startups
* Deduction can be claimed by startups upto 10 years
* Tax audit turnover threshold limit increased from 1 cr to 5 cr
* Concessional 5% withholding tax has been extended to municipal bonds. Cooperatives are taxed at 30 percent now. Cooperatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.
* Complete online registration of charitable institutions
* Faceless appeals on the line of faceless assessment
* Vivad se Vishwas Scheme introduced - New direct tax dispute settlement scheme
* More than 4.83 lakhs cases pending at various forums
* Taxpayer's need to pay only disputed amount of tax (no penalty be charged) by March 2020; scheme will be available till June 2020 but some additional payment to made in-addition to tax
* CBDT to adopt Taxpayer's charter
* PAN shall be instantly allotted on the basis of Aadhar without any filling up of form
* Personal interface with tax administrators will be at minimum level
* GST reforms will continue including a simplified return-filling form. FM says, refund has been simplified and has been fully automated.
