Finance Minister Nirmala Sitharaman, on Saturday, February 1, read the Union Budget for 2020-21 in the parliament.
Sitharaman said the Government is expecting the GDP growth of the country for 2020-21 at 10%. “India is now the 5th largest economy in the world. India’s debt reduced to 48.7% of GDP in 2019 from 52.2%. India clocked a GDP growth of 7.4% over 2014-19, with average inflation of 4.5%. India has uplifted 271 million people out of poverty. GST enabled introduction of 60 lakh news taxpayers into the system. Households saved 4% on monthly expenditure after GST introduction,” she said.
Here are the key takeaways:
Sitharaman proposed new tax slabs that will be voluntary for taxpayers who forego any deductions and exemptions.
Under the new tax slabs, the rates are as follows.
Rs 0 to Rs 5 lakh: Tax exempted
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%
Income generated by charities will be fully exempted and donations will avail deductions. The lower corporate tax rate of 15% for manufacturing companies will be extended to electricity generation business.
Allocations:
Rs 2.83 Lakh crore for Agriculture and Rural Sector.
Rs 69,000 crore for Health Sector.
Rs 35,600 crore for nutrition-related programs.
Rs 99, 300 crore for Education.
Rs 3.6 Lakh crore for Jal Jeevan Mission.
Rs 85,000 crore for SCs and OBCs and Rs 53,000 crore for STs.
Rs 30, 757 crore for Jammu and Kashmir and Rs 5, 958 crore for Ladakh.
Rs 22,000 crore for Power, Renewable Energy.
Rs 4,400 crore for States to formulate and implement plans that will ensure clean air.
Rs 28,600 crore for programs specific to women.
