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Income Tax Tweaks, LIC IPO, New Airports and Trains: Union Budget 2020 Highlights

News18 Creative by Mir Suhail.

News18 Creative by Mir Suhail.

Finance Minister Nirmala Sitharaman announced cuts in personal income tax, extended tax benefits for affordable housing and gave relief to companies on payment of dividend in the Union Budget for 2020-21.

  • News18.com
  • Last Updated: February 1, 2020, 5:19 PM IST
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New Delhi: Finance Minister Nirmala Sitharaman on Saturday unveiled the budget for fiscal 2020-21, vowing to boost income of Indians and their purchasing power, in a bid to revive domestic economic growth that has slumped.

India estimates economic growth this fiscal year, which ends on March 31, will slip to 5% — its weakest pace since the global financial crisis of 2008-09.

These are the highlights from Sitharaman's fiscal 2020-21 budget speech:

TAX

* Optional income tax cuts for those foregoing exemptions

* 10% tax for income between Rs 5 lakh-7.5 lakh

* 15% for income between Rs 7.5 lakh-10 lakh

* 20% for income between Rs 10-12.5 lakh

* 25% for income between Rs 12.5 -15 lakh

* 30% for income above Rs 15 lakh.

DEFICIT

* Fiscal deficit for 2019/20 seen at 3.8% of GDP

* Fiscal deficit for 2020/21 seen at 3.5% of GDP

BORROWING

* 2020/21 net market borrowing seen at 5.36 trillion rupees ($75.42 billion)

EXPENDITURE/RECEIPTS

* Revised expenditure 2019/20 26.99 trillion rupees ($379.77 billion)

* Receipts for 2020/21 estimated at 22.46 trillion rupees ($316.03 billion)

* Expenditure for 2020/21 estimated at 30.42 trillion rupees ($428.03 billion)

* India to allocate 2.83 trillion rupees ($39.82 billion) for agriculture and allied activities

* Approves 3.6 trillion rupees ($50.65 billion) for a federal water scheme

* To allocate 993 billion rupees ($13.97 billion) for the education sector in 2020/21

* To allocate 286 billion rupees ($4.02 billion) on federal schemes for women

* Government to sell part of its holding in Life Insurance Corp

HEALTHCARE

* India to allocate 690 billion rupees ($9.7 billion) toward healthcare spending

* Taxes from medical devices to used to fund healthcare infrastructure

TRANSPORT

* India to develop 100 more airports by 2024

* India to monetize over 6,000 km of highways in 12 lots by 2024

* India to privatize at least one major port

POWER/INDUSTRY

* India to provide 273 billion rupees ($3.84 billion) for promotion of industry and commerce

* Firms operating old thermal power plants advised to shut units if emission norms not met

* India to allocate 44 billion rupees ($619.11 million) for clean air incentives in cities with over 1 million people

* India to allocate 220 billion rupees ($3.10 billion) for power and renewables

* Conventional energy meters to be replaced by prepaid smartmeters in the next three years

* India to expand national gas grid to 27,000 km

* Large solar power capacity to be set up alongside rail tracks, on land owned by Indian Railways

MANUFACTURING

* Scheme focused on encouraging manufacture of mobile phones, electronic equipment and semiconductor packaging to be introduced

* To encourage private sector to build Data Centre Parks throughout the country

* 80 billion rupees ($1.13 billion) over five years to be provided for quantum technologies and applications

* Milk processing capacity to be doubled by 2025

New Income Tax Slabs 2020-21 (Optional)
New RatesOld Rates
Under Rs 5 lakhNo tax0% for income upto 5 lakh. 5% for income greater than 2.5 lakh if total income greater than Rs 5 lakh.
Rs 5 lakh to Rs 7.5 lakh10%20%
Rs 7.5 to 10 lakh15%20%
Rs 10 lakh to Rs 12.5 lakh20%30%
Rs 12.5 lakh to Rs 15 lakh25%30%
Above Rs 15 lakh30%30%

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