pro-middle class tilt in the Budget 2020
Income Tax relief
Deepak Mittal, CEO & Co-founder, TO THE NEW
“We are thrilled with the announcement of a soon to be rolled out policy to enable private sector to build data center parks throughout the country. This would reap benefits such as on-demand access to ICT infrastructure, cater to Indian regulatory requirements as well as drive scalability for businesses in India. We were, however, also expecting the government to announce measures with respect to Data Protection keeping in mind the amount of data being created and stored at unprecedented rates,”
Sitharaman’s education budget has FDI, making students job-ready, Rs 5,000-cr allocation rise
Finance Minister on Saturday proposed to remove dividend distribution tax on companies, and henceforth the tax will be shifted to recipients at the applicable rate.
Nirmala Sitharaman said in the Budget that proposal would make India more attractive market for investment. “This is another bold move, which will further make India an attractive destination for investment,” she said, adding it would result in a revenue sacrifice of Rs 25,000 crore per annum.
Currently, companies are required to pay dividend distribution tax (DDT) on the dividend paid to its shareholders at the rate of 15 per cent plus applicable surcharge and cess, in addition to the tax payable by the company on its profits.
“In order to increase the attractiveness of the Indian equity market and to provide relief to a large class of investors, I propose to remove the DDT and adopt the classical system of dividend taxation under which the companies would not be required to pay DDT.
“The dividend shall be taxed only in the hands of the recipients at their applicable rate,” she said.
The system of levying DDT, she said, results in increased tax burden for investors and especially those who are liable to pay tax less than the rate of DDT, if the dividend is included in their income.
Further, non-availability of credit of DDT to most of the foreign investors in their home country results in reduction of rate of return on equity capital for them, she noted.
“Further, in order to remove the cascading effect, I also propose to allow deduction for the dividend received by holding company from its subsidiary. The removal of DDT will lead to estimated annual revenue forgone of Rs 25,000 crore,” the minister said.
Prime Minister says Union Budget 2020 focuses on economic empowerment of every citizen
Says it lays strong foundation for a prosperous new decade
Says Budget focusses on all major employment generating sectors Viz Agriculture, Infrastructure, Textiles and Technology
Prime Minister Shri Narendra Modi today termed the Union Budget 2020 as a one based on vision and action oriented.
In his remarks after the Union Budget was tabled in the Lok Sabha, the Prime Minister said, “The new reforms announced in the Budget not only give a boost to the economy but also aim at the economic empowerment of every citizen in the country.”
“This budget also works towards further strengthening the economy in the new decade”, he said.
Focus on Employment Generation:
Prime Minister said the Budget 2020 focuses on major employment generating sectors viz Agriculture, Infrastructure, Textiles and Technology.
“The 16 Action Points will help in doubling the farmers income along with increasing the employment generation in the Rural Sector”, he said.
“The Union Budget adopts an integrated approach for the Agriculture sector, where the focus apart from Traditional means of cultivation is also on increasing the value addition in horticulture, fisheries and animal husbandry and this in turn would increase employment”, he said.
“The efforts in blue economy would bring about more employment to the youth in fish processing and marketing”.
Textile Sector
Prime Minister said there was a decision on the new machines in the technical textiles.
He said Budget also announced the reforms in the raw material duty structure so as to increase the production of man-made fibre in India. Prime Minister said, there was a demand for this reform for the last 3 decades.
Health Sector
Prime Minister said, “The Ayushman Bharat programme has expanded the health sector in the country. This has expanded the scope for more human resources, whether of doctors, nurses or attendants, along with the need for manufacturing of medical devices in the country. And the Government has taken several decisions in this direction”
Technology Sector
Prime Minister said that the Government has taken several special measures to improve the employment generation in the Technology sector. “We have taken several policy initiatives with regard to Smart Cities, Electronic Manufacturing, Data Centre Parks, Bio-Technology and Quantum Technology. With this India would become an integral part of the global value chain”
“Budget focuses skill development of the youth through new and innovative initiatives like apprenticeship in Degree Courses, Internship in Local Bodies and online degree courses”, he said.
Saying that MSME and Export sectors are a source of employment generation, he said, the budget focuses on increasing exports along with financing of small scale industries.
Infrastructure
A modern India needs modern infrastructure and the sector is a great employment generator, he said.
“Over 100 Lakh Crore rupees is being invested in over 6500 projects and this would create a massive employment generation potential. The national logistics policy would also aid in trade, industry and employment”, he said.
“The announcement to develop 100 new airports would give a boost to tourism in the country and along with a huge potential for employment generation” he said.
Investment
Prime Minister said the budget has taken several historic steps to boost investment which is a major driver for employment.
“Several steps have been taken to strengthen the bond market and long term financing of Infrastructure projects. Similarly with the abolition of Dividend Distribution Tax, companies would be having over Rs 25000 Crores for further investment.”
“Also to attract FDI many tax concessions were announced”, he said.
“Similarly tax benefits were provided to start ups and the real estate sector too”, he said.
Focus on Trust in Taxation
Prime Minister said that the Government is creating an atmosphere where there would be no disputes but trust in the Income Taxation.
“Even small mistakes were considered criminal in the Company Law, now we have taken a major decision to de-criminalise such acts”
“We are launching the Taxpayer Charter, which would list out the rights of the tax payers”.
In the same direction to increase the trust, the Prime Minister said the Budget announced that now it is not mandatory to audit those MSME’s who turn over is up to Rs 5 Crores.
“Earlier this limit was up to Rs 1 Crore, but now it has been increased to Rs 5 Crores”, he said.
Unified Exam for Government Jobs
“As of now the youth in the country have to take different exams for different government jobs. Bringing about a systemic change in this, the National Recruitment Agency will now hold one online common exam for recruitment to various jobs either for banks, railways or any other government job”, he said.
Minimum Government Maximum Governance
Prime Minister said the steps such as Faceless Appeal, Simplified Direct Tax, Efforts to step up disinvestment of PSUs, Unified Procurement System, Auto Enrolment are all aimed at Minimum Government & Maximum Governance.
Ease of Doing & Ease of Living
Further Prime Minister said the Budget announced the linking of Anganwadis, Schools, Wellness Centres and Police Stations in over One Lakh Gram Panchayats through Broadband Internet.
He said this would help in “Ease of Doing & Ease of Living”.
“This would connect several remote villages also through broadband”, he said.
He summed up the Union Budget 2020 as one that strengthens Income and Investment, Demand & Consumption; one that would bring in new inspiration into the Financial System & Credit Flow.
Proposes to amend Income Tax Act to mandate CBDT to adopt a Tax payers Charter
Under the new tax slabs, the rates are as follows:
Rs 0 – Rs 2.5 lakh: Tax exempted
Rs 2.5 lakh – Rs 5 lakh: Remains at 5%
Rs 5 lakh – Rs 7.5 lakh: Currently 20%, will reduce to 10%
Rs 7.5 lakh – Rs 10 lakh: Currently 20%, will reduce to 15%
Rs 10 lakh – Rs 12.5 lakh: Currently 30%, will reduce to 20%
Rs 12.5 lakh – Rs 15 lakh: Currently 30%, will reduce to 25%
Above Rs 15 lakh: Remains at 30%
Krishi UDAN will be launched by Ministry of Civil Aviation on international and national routes, improving value realization in North East and tribal districts
It is felt that our education system needs a greater inflow of finance to attract talented teachers, innovate and build better labs. Therefore, steps will be taken to enable sourcing external commercial borrowings and FDI so as to deliver higher quality education. #JanJanKaBudget
Rs 100 crore allocated for hosting G-20 Summit in 2022: FM
Wellness, water and sanitation is the second point under Aspirational India.
A very focussed, safe water Jal Jeevan Mission and comprehensive Swachh Bharat Mission have been launched to support the health vision: FM #Budget2020
FM Sitharaman said the Modi government is proposing a 16-point action plan to boost agriculture and farmers' welfare.
Agricultural services need copious investments, and the government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojna.
"Everything that we do, speak through budget..."
"Beti Bachao, Beti Padhao has yielded tremendous results":
Indian Railways to set up Kisan Rail in PPP mode for cold supply chain to transport perishable goods
Krishi Udaan to be launched by Civil Aviation Ministry to transport agri-products to national as well international destinations:
Govt to launch a scheme focused on encouraging manufacture of mobile phones, electronic equipment and semi-conductor packaging
out of the Rs 99,300 cr allocated to the #education sector for FY21, Rs 3,000 cr is for the skill segment
Govt to allocate Rs 1.23 lakh for rural development and panchayati raj, and Rs 1.6 lakh crore for agriculture and allied activities
' Humara desh khilte hue shalimar bagh jaisa ....'' - FM Sitharaman recites Kashmiri poem in her Budget speech
(Kamal and kashmiri words appear in single line)
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| Sitharaman was also Defence Minister under Modi |
Finance Minister Nirmala Sitharaman while presenting the Union Budget for 2020-21 recited a poem by a Kashmiri Pandit poet by Pandit Dinanath Kaul and listed three themes of this Budget. Quoting a Kashmiri poem while presenting Budget 2020, Sitharma said,' Humara desh khilte hue shalimar bagh jaisa ....''
Dina Nath Kaul was awarded the Nehru award in 1971 for his writing, and honoured with Sahitya Academy Award.
'Shihul Kul' – a good collection of his poems.
Sitharaman recited the verse “Son varan gulzar Shalimar huen…”, which roughly translated to English means, “Our nation is akin to blooming flowers in the Shalimar Bagh; our nation is akin to a lotus in the Dal Lake; our nation is akin to the warm blood flowing in the veins of the youth; our nation is the most beloved in the world.”
The recitation of the poem evoked praises and desk thumping from BJP members including Home Minister Amit Shah
हमारा वतन खिलते हुए शालीमार बाग जैसे
हमारा वतन डल झील में खिलते हुए कमल जैसा
नौजवानों के गरम खून जैसा
मेरा वतन, तेरा वतन, हमारा वतन
दुनिया का सबसे प्यारा वतन
Efforts we have made in the last five years and the enthusiasm and energy of our youth are the ignition of our growth
Committed to doubling farmers' income by 2022
#Budget2020 is to boost the income of people and enhance their purchasing power
Farm markets need to be liberalized, farming need to be made more competitive, handholding of farm-based activities need to be provided, sustainable cropping patterns and more tech needed
Comprehensive measures for 100 water-stressed districts being proposed
Central govt's debt has come down to 48.7% in March, 2019 from 52.2% in March, 2014
Aspirational India in which all sections of the society seek better standard of living Economic development for all Ours shall be a caring society: Caring and compassionate.
FM Sitharaman also said fundamentals of the economy are strong and inflation has been well contained, while banks cleaned up accumulated loans. Presenting the Union Budget for 2020-21, she said it is aimed at boosting income and purchasing power of people. The finance minister further said during 2014-19, the government brought a paradigm shift in governance. She termed GST as a historic structural reform, saying it integrated the country economically.
Govt proposes to start programme for urban local bodies to provide opportunities for internship to young engineers
Steps to be taken to attract external commercial borrowing, FDI in education sector,
Centre to announce new education policy soon; govt received over 2 lakh suggestions on it: FM
"By 2030, India will have largest working age population in the world. This population needs both job and life skills.
investment Clearance Cell to set up through a portal, will provide end-to-end facilitation, support and information on land banks
Govt proposes Rs 3.6 lakh crore towards piped water supply to households
550 wi-fi facilities have been commissioned at railway stations, says FM.
SUDEEP KUMAR SEN, BUSINESS HEAD, TEAMLEASE SERVICES LTD
Finance Minister said insurance giant LIC will be listed as part of the government disinvestment initiative.
Currently, the government owns the entire 100 per cent stake in Life Insurance Corporation of India (LIC).
LIC employees’ unions on Saturday opposed the Centre’s plan to sell a part of its shares in the state-run insurance behemoth through an initial public offer (IPO), insisting that the move is “against the national interest”.
Sitharaman said the Life Insurance Corporation of India (LIC) will be listed as part of the government disinvestment initiative.
In order to boost affordable housing in India and further the government’s ‘Housing for All’ initiative, Budget 2020 has proposed to extend the date of loan sanction for availing additional deduction of Rs 1.5 lakh by one year to March 31, 2021. Property developers will also get a tax holiday on the profit earned on affordable housing projects approved by March 31, 2020.
Reviving domestic economic growth
ASHISH KALE, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATION
“The budget’s focus on agriculture, irrigation and rural development will have a rub off effect on rural demand in the next 3-4 months if all the measures are actioned immediately. This will give a fillip to rural auto demand, especially two-wheelers, tractors and small commercial vehicles
PRASHANTH DORESWAMY, MANAGING DIRECTOR, CONTINENTAL AUTOMOTIVE INDIA & COUNTRY HEAD, CONTINENTAL GROUP INDIA
“The measures announced today towards setting up renewable energy stations will help us in the required power generation as we transition to electric vehicles.
DEEPAK JAIN, PRESIDENT, AUTO COMPONENT MANUFACTURERS ASSOCIATION (ACMA):
“Focus on electronics manufacturing including electronic equipment and semiconductor packaging is welcome and will encourage manufacturing of auto-electronics and components of electric vehicles.
SUDEEP KUMAR SEN, BUSINESS HEAD, TEAMLEASE SERVICES LTD
“The introduction of national logistics policy is a good move and will have a positive impact on jobs. The increased investment in the sector will lead to a minimum of 12% to 15% incremental jobs in all categories unskilled, semi-skilled and skilled. It will also mean high number of mobilization of workers across the states.
KIRAN MAZUMDAR SHAW, CHAIRMAN AND MANAGING DIRECTOR, BIOCON
“The proposed amendments to the Companies Act for removing criminal action in case of tax disputes is a step towards infusing trust among India Inc.
The expansion of health infrastructure in tier II and III cities through a PPP (public private partnership) model and upskilling for job creation will strengthen the Ayushman Bharat program (national health protection scheme).”
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