Guide to .. Tax Management ,Tax Planning and Tax Saving
BLOG on Income Tax Management for - AY 2022-23 & 2023-24

Budget 2020 – Key Highlights

  • Fiscal deficit target for FY 2020 revised to 3.8% of GDP (from earlier target of 3.3%). For the FY21 the target has been revised to 3.5 per cent

  • Finance Minister : This budget is woven into three major themes

    1. Aspirational India

    2. Economic development

    3. Ours shall be caring society that is humane

  • The FY21 total expenditure at Rs 30.42 lakh crore

  • Net Market Borrowing for FY 2020 at Rs. 4.99 lakh crore and net market borrowing for FY 2021 at Rs. 5.36 lakh crore

  • Nominal growth of GDP for the year 2020-21 on the trends available pegged at 10%

Agriculture/ Farmer Income (Budget 2020 – Key Highlights ):

  • Government is committed to doubling farmers’ income by 2022.

  • A total of Rs. 6.11 crore farmers insured under Fasal Bima.

  • 11 crore farmers were beneficiaries of PM Kisan Beema Yojana. Agricultural markets need to be opened and liberalized.

16-Point Plan to Revive the Farm and Agriculture Sector (Budget 2020 – Key Highlights ):

  1. Rs 2.83 lakh crore to be allocated for agriculture

  2. Rs 1.23 lakh crore to be allocated for rural development and panchayatiraj

  3. Comprehensive measures for 100 water stressed districts

  4. Encourage states to take up model agricultural laws

  5. Encourage balanced use of fertilisers

  6. PM Kusum scheme removes dependence on kerosene and encourages use of solar power

  7. Doubling of milk production of 53.5 million metric tonne of milk to 103 metric million tonne by 2025

  8. Financing of negotiable warehousing receipts will be integrating other e-services

  9. Agricultural credit availability for 2021 has been set at Rs. 15 lakh crore

  10. Aims to eliminate the foot and mouth disease in sheep and goat by 2025

  11. Krishi UDAAN scheme will be launched by Aviation Ministry

  12. Horticulture sector with its current produce exceeds the production of food grains. We will now take it to, One Product One District.

  13. Involve youth in fishery sector. We hope the rural youth will work as Sagar Mitras and also form Fish Farmer Organisation

  14. NABARD will take up an exercise of mapping and geo tagging agricultural warehouses, cold storage and other inventory storages

  15. A village storage scheme is proposed to be managed by SHEs. This will help farmers store more and reduce logistics costs. Women in the village will be responsible for managing this seamless storage mechanism

  16. Under Antodyaya scheme, SHEs will bw further taken forward and made stronger.

Healthcare/ Clean India (Budget 2020 – Key Highlights):

  • Total of Rs 69.000 crore has been provided for the healthcare sector of which PM Jan Arogya Yojana will get Rs 6,400 crore.

  • Expand Jan Aushadhi scheme to provide for all hospitals under Ayushmann Bharat by 2025

  • Desh Jeetega campaign will be strengthened to end TB by 2025 in the country

  • Mission Indradhanush has been extended to cover new diseases and new vaccines

  • PPP mode hospitals will be set up under viability gap funding to look at areas where there are no hospitals

Education (Budget 2020 – Key Highlights ):

  • Urban local bodies to provide internship to young engineers for a year (know how the govt functions)

  • Expanding on the new education policy, new courses will be introduced in 150 universities by 2026.

  • A national Police university and a national forensic science university is proposed to be setup

  • Proposes to start an SAT exam for students of Asia and Africa to promote “study in India” programme.

  • An allocation of Rs 3,000 crore for the Skill India programme.

Start-Ups/ Entrepreneurship (Budget 2020 – Key Highlights ):

  • A total allocation of Rs 27,300 crore for development of industry and commerce in FY21

  • Create more opportunities for startup owners

  • Investment clearance cell will be set up for entrepreneurs

  • A new scheme Nirvik will be offered for exporters, will have lower premiums and a faster claims settlement.

  • There is cost advantage for electronics manufacturing in India, but this needs more investment

  • proposes a scheme on encourage manufacturing of mobile phones, semi-conductor packaging and electronic equipment

  • Propose a special plan to include young engineers, management graduates and economists

Textile (Budget 2020 – Key Highlights ):

  • India imports technical textile worth 6 million dollar. A new scheme for setting up manufacturing units of technical textiles

Railways (Budget 2020 – Key Highlights ):

5 Measures for Railways:

  1. Setting up a large solar power capacity alongside the rail tracks on the land owned by the Railways

  2. More station redevelopment programs

  3. More Tejas like trains to connect major tourist attractions

  4. More high speed tains like the one between Amedabad and Mumbai will be started

  5. Bengaluru suburban rail will be provided the required boost

Aviation (Budget 2020 – Key Highlights ):

  • An allocation of Rs 1.7 lakh crore for trasport infrastructure will be provided in FY21

  • 100 more airports will be developed to provide support to the PM UDAN scheme by 2024

  • More Tejas Express-type trains will be set up for tourist destinations

  • A governance framework for ports will be set up

  • To provide 20% equity for Bengaluru Suburban Transportation Project, an allocation of Rs 18,600 crore for this project

IT (Budget 2020 – Key Highlights ):

  • Set up Data Centre Parks, will help is storing and dissemination of data better

  • Rs 8000 crore allocated over the next five years for quantum technology related computing

  • An allocation of Rs 6,000 crore will be provided for BharatNet

  • Public institutions at Gram Panchayat levels will be provided with digital connectivity

  • Fibre to home through BharatNet will link 100,000 Gram Panchayats in FY21

Power (Budget 2020 – Key Highlights ):

  • A total allocation of Rs 22,000 crore will be given to power and renewable sector

  • A new scheme of smart meters will be launched, prepaid meters will give freedom to give consumers to choose supplier and rate as per their requirement.

For Women (Budget 2020 – Key Highlights ):

  • An allocation of Rs 35,600 crore for nutrition-related programmes

  • Rs 28,600 crore will be allocated in FY21 by government for women-linked programmes.

Tourism (Budget 2020 – Key Highlights ):

  • A total of Rs 2,500 crore will be allocated for tourism promotion in FY21

  • A total of Rs 3,100 crore has been set aside for Culture Ministry in FY21

  • Five archaeological sites will be set up with museums on site in Rakhi Gadi in Haryana, Hastinapur in UP, Dholavira in Gujarat, Shivsagar in Assam and Adichanallur in Tamil Nadu

  • A tribal museum will be set up in Ranchi, Jharkhand

  • Maritime site will be set up in Lothal

  • A 100 more airports will be developed under UDAN by 2024

Environment (Budget 2020 – Key Highlights ):

  • Encourage plans to have clean air by the state governments with allocation of Rs 4,400 crore

  • India's commitment under the Paris Agreement action will kick-in from January 1, 2021

  • Power plants with higher emissions will have to be closed, its land will be used for other purposes

Finance (Budget 2020 – Key Highlights ):

  • Deposit insurance cover will be hiked to Rs 5 lakh from Rs 1 lakh

  • Subordinate debt for entrepreneurs of MSMEs will be provided and will be treated as quasi-equity

  • Government to list LIC on the stock exchanges

  • NBFC Eligibility for SARFAESI Act reduced to Rs 100 crore from Rs 500 crore AUM

  • Dividend distribution tax abolished, total of Rs 25,000 crore is revenue foregone due to DDT abolition

Revised Income Tax Slabs for Individuals (Budget 2020 – Key Highlights ):

Income upto Rs. 2.5 lakhs                  – Nil

Rs 2.5 lakhs to Rs. 5 lakhs                 – 5%

Rs. 5 lakhs to Rs.7.5 lakhs                 – 10%              (against 20%)

Rs. 7.5 lakhs to Rs. 10 lakhs              – 15%              (against 20%)

Rs. 10 lakhs to 12.5 lakhs                  – 20%              (against 30%)

Rs. 12.5 lakhs to Rs. 15 lakhs            – 25%              (against 30%)

Above Rs. 15 lakhs                             – 30%

A person with Rs. 15 lakhs income will now pay Rs. 1.95 lakhs tax only from Rs. 2.73 lakhs

Currently more than 100 exemptions provided in IT Act. Around 70 of them have been removed in the simplified regime now.

Others (Budget 2020 – Key Highlights ):

  • Rs 12,300 crore has been allocated for Swachh Bharat mission

  • Rs 85,000 crore has been allocated for empowerment of Scheduled Caste and Rs 53,700 crore for Scheduled Tribes

  • Allocation of Rs 9,500 crore for senior citizens for FY21

  • India will host G-20 residency in 2022 during 75th year of India's independence, an allocation of Rs 100 crore has been done for this purpose

  • Announces budget allocation of Rs  30,757 crore for development of Jammu and Kashmir and Rs 5,958  crore for Ladakh

  • Total of 60 lakh new taxpayers and 105 crore e-way bills generated under GST

  • For Jal Jeevan mission, Rs 11,500 crore allocation will be provided in current fiscal (FY20).

Impact and Incedence of Tax in Budget 2020 Tax Amendments in Finance Bill 2020 Rates of Income Tax Amendments for Financial Year 2020-21 (AY : 2021-22)
Income Tax Slab for Financial Year 2020-21 (AY : 2021-22)

You may also like ...

 

TallyPRIME-3.* Book (Advanced Usage)
TallyPrime Book @ Rs.600

 
| About Us | Privacy Policy | Disclaimer | Sitemap |
© 2024 : IncomeTaxManagement.Com