Decoding Union Budget 2020 – Live Updates MBG

  Download MBG’s Union Budget 2020 Synopsis and Detailed Report from here.   Catch the Live Updates of Union Budget 2020 form MBG Corporate Services Experts. Live Updates:
  • FM Nirmala Sitharaman lays the Union Budget 2020 before the Parliament.
  • Gaurav Khanna: “Health cess by way of custom duty proposed to be imposed on import of medical equipment, to give a level playing field to exporters of medical equipment. Finance Bill 2020 introduced in parliament”
  • Deepak Arora: “Rules to determine the place of origin to be introduced under customs for selected items. Customs duty raised on Footwear and Furniture.”
  • Deepak Arora: “E-Invoicing system under GST to be implemented on pilot basis for defined companies on an optional basis. From Feb 2020 onwards. Govt to introduce Aaddaar based verification of GST Taxpayer”
  • Gaurav Khanna: “CBDT to adopt a Taxpayer Charter, Proposal to allot PAN instantly on the basis of Aadhaar”
  • Gaurav Khanna: “Propose to bring Vivad se Vishwas scheme in Direct Tax Litigation on lines of Sabka Vishwas Scheme in Indirect Scheme. To pay disputed tax upto 31 March 2020 without paying any interest and penalty.”
  • Janardan Singh: “Vivad se vishwas scheme for direct tax, scheme is on by 30 June 2020. Only disputed tax amount has to be paid”
  • Gaurav Khanna: “even the government’s faceless assessment is not providing any significant results..”
  • Janardan Singh: “Faceless appeals will create problem for assessee as appellate authority will not allow appeal in case of misunderstanding.”
  • Kartik Chhabra: “Limit raised from 5 to 10pc for deviation allowed from circle rate. Process of e-registration for charitable institutions. Amend I-T Act to enable faceless appeals to be introduced.”
  • Kartik Chhabra: “Affordable housing deduction of 1.5 lacks on interest extended by 1 more year. Similarly, 1 year extended for businesses claiming tax holidays on affordable housing”
  • Govt proposes 100% tax concession to sovereign wealth funds on investment in infra projects
  • Gaurav Khanna: “In a boost to MSMSEs, Turnover threshold for tax audit raised to INR 5 crores from INR 1 crores.”
  • Deepak Arora: “194LC for interest paid to Non Resident extended till 2023, Taxes on ESOP’s deferred by 5 years”
  • Corporate tax cut will be available for power generation companies as well. Concessional tax rate of 15% extended to power generation companies.
  • Kartik Chhabra: “DDT to be abolished and now divided to be taxable in the hand of the recipient. 25k crores will be foregone on this. This can make India an attractive investment destination”
  • NEW INCOME TAX SLABS VS EARLIER – NO EXEMPTIONS APPLICABLE – 10% for income between Rs 5 lakh-7.5 lakh against 20%. – 15% for income between Rs 7.5 lakh-10 lakh against 20% – 20% for income between Rs 10-12.5 lakh against 30% – 25% for income between Rs 12.5 -15 lakh against 30% – 30% for income above Rs 15 lakhThis means lower tax rate for those in the Rs 5 to 15 lakh bracket
  • Fiscal deficit has to be addressed in every budget, estimate 3.8 percent of GDP in FY20 and 3.5 percent for BEFY21
  • Gaurav Khanna: “LIC, which is the largest institutional investor, to come up with an IPO. As a government’s measure to sell part of its holding in LIC on the stock exchanges.”
  • Non-residents can invest in certain government securities.
  • New legislation proposed for netting of financial contracts
  • Subordinate debt for entrepreneurs of MSMEs will be provided and will be treated as quasi-equity.
  • Deepak Arora: “DICGC insurance to be increased from Rs. 1 Lac to Rs 5 Lacs”
  • Kartik Chhabra: “INR 30,757 cr for UT of J&K and 5,958 cr for UT of Ladakh”
  • Gaurav Khanna: “Rs 100 Crore Allocated for G20 Presidency preparations in the year 2022”
  • Vaibhav Matta: “To achieve higher export credit disbursement, a new scheme NIRVIK is being launched which provides for higher insurance cover and simplified claim settlements for exporters.”
  • Vaibhav Matta: “A “Tax Payer Charter”_ as a part of the tax laws to reassure tax payers that the tax payers are free of harassment of any kind. A big symbolic move!”
  • Gaurav Khanna: “Taxpayer Charter to be part of laws and statues. Tax payers charter to curb tax harassment is a step to adopt global best practices”
  • Government will encourage plans to have clean air by the state governments with allocation of Rs 4,400 crore.
  • Janardan Singh: “Government has tried to focus on all relevant aspect but the results will depend upon the proper implementation of the same. All schemes are for future India but what about present India.”
  • Gaurav Khanna: “5 Archeological sites to be developed as Iconic sites with In-House museum as boost to tourism. Rs. 2500 crores for Tourism promotion”
  • Propose to provide Rs 35,600 crore for nutrition-related programmes in 2020-21: FM
  • Rs 1.7 lakh crore provided for transport infrastructure in 2020-21
  • Janardan Singh: “Focus on quantum technology shows the vision of the government…Great”
  • FM proposes Rs 8,000 crore outlay over 5 years for National Mission of Quantum Technology and Application.   
  • Kartik Chhabra: “6,000 cr proposed for ‘Bharat net’ and connecting 1 lac gram panchayats via it indeed a very progressive step for rural India”
  • Gaurav Khanna: ‘Data is the new oil’: Policy for Data Centre Parks soon
  • FM announces Rs 22,000 crore for the renewable energy sector
  • Deepak Arora: “National gas grid to be expanded from 16,200 km to 27,000 km”
  • Measures for Railways: a) Setting up a large solar power capacity alongside the rail tracks on the land owned by the Railways. b) More station redevelopment programs. c) More Tejas like trains to connect major tourist attractions. d) More high speed tains like the one between Ahmedabad and Mumbai will be started. e) Bengaluru suburban rail will be provided the required boost.
  • Deepak Arora: “FM proposes setting up of a large solar-powered capacity alongside rail tracks which can be a strategic step.”
  • Gaurav Khanna: “100 more airports to be developed by 2024 to support UDAAN scheme”
  • National Infrastructure Pipeline involves 6,500 projects. NSDC will help skill development in the infrastructure sector. Total of 9,000 km of economic corridor will be set up.
  • Deepak Arora: “2,000 km of Strategic highways to be developed. National Logistic policy to be introduced soon”
  • Kartik Chhabra: “Scheme for digital refund of taxes and duties another welcome step in the vision of digital India”
  • Deepak Arora: “Scheme focused on encouraging the manufacturing of mobile phones and electrical equipment to be introduced soon as there is a cost advantage for electronics manufacturing in India”
  • Deepak Arora: “Investment Clearance cell to be set up as entrepreneurship is the spirit of India ad has been its strength”
  • FM announces Rs 99,300 crore outlay for the education sector in 2020-21 and Rs 3,000 crore for skill development
  • Gaurav Khanna: “Proposed to setup National Police university and a national forensic science university”
  • Deepak Arora:Govt to expand Mission Indradhanush, add more hospitals to Ayushman Bharat. IND-SAT test proposed for foreign students wishing to pursue higher education in India. Agri stocks gain on Budget’s rural focus”
  • Janardan Singh: “Govt focus on skill development by bringing educational policies and other policies to support education will help in reduction of unemployment.”
  • Kartik Chhabra: “INSAT exam proposed for studying in India indeed a great step”
  • Janardan Singh: “Study in India program is a welcome step.”
  • Deepak Arora: “Degree Level online program to be started by National Universities” –
  • 16-point plan to revive the farm and agriculture sector: 1. Encourage states to take up model agricultural laws 2. Comprehensive measures for 100 water-stressed districts. 3. PM Kusum scheme removes dependence on kerosene and encourages the use of solar power 4. Encourage balanced use of fertilizers 5. NABARD will take up an exercise of mapping and geotagging agricultural warehouses, cold storage and other inventory storages 6. A village storage scheme is proposed to be managed by SHEs. This will help farmers store more and reduce logistics costs. 7. Krishi UDAAN scheme will be launched by the Aviation Ministry. 8. Horticulture sector with its current produce exceeds the production of food grains. We will now take it to, One Product One District. 9. Financing of negotiable warehousing receipts will be integrating other e-services. 10. Agricultural credit availability for 2021 has been set at 15 lakh crore. 11. To eliminate the foot and mouth disease in sheep and goat by 2025 12. Doubling of milk production of 53.5 million metric tonnes of milk to 103 metric million tonnes by 2025. 13. Involvement of youth in the fishery sector. Rural youth to work as Sagar Mitras and also form Fish Farmer Organisation 14. Under the Antodyaya scheme, SHEs will be further taken forward and made stronger. 15. Rs 2.83 lakh crore to be allocated for agriculture. 16. Rs 1.23 lakh crore to be allocated for rural development and Panchayati raj
  • Kartik Chhabra: “Proposed Use of AI for Aayushmaan Bharat scheme commendable step.”
  • Additional Rs 69,000 crore for the health sector. The total allocation for Swachh Bharat Mission is Rs 12,300 crore in 2020-21.
  • Gaurav Khanna: “Rs. 3.06 Lac crores approved for Jal Jeevan Mission is a fantastic step”
  • Deepak Arora: “Govt proposes plans to help farmers use proper manure and little water.”
  • Agri and allied activities an allocation of Rs 2.83 lakh crore has been made for FY21. This includes agriculture, irrigation, rural development, Panchayati Raj.
  • Farmer relief Budget 2020: Agri credit target for 2020-21 has been proposed at Rs 15 lakh crore
  • Janardan Singh: “Refinancing scheme of NABARD will provide support to the farming sector and make this sector attractive and reduce movement of workforces from villages.”
  • FM lists 16-point action plan for farmers
  • Vaibhav Matta: “A pill for your GST headache: A new and simplified GST return system coming this April”
  • Vaibhav Matta: “GST has resulted in efficiency gains in the transport and logistics sector, inspector raj has vanished, it has benefited MSME”
  • The government can help 15 lakh solarise grid-connected pump sets
  • PM Kusum Scheme reduced dependence on diesel and kerosene and relied on social energy. Total of 20 lakh farmers can set up standalone solar pumps.
  • Kartik Chhabra: “Krishi Udaan and Krishi Rail for farmers a very good step for the development of the farming sector”
  • Janardan Singh: “16 action points for farming sector will be effective only if the same shall be supported by state governments”
  • Janardan Singh: “Emphasis on solar energy for boosting farming sector…Is a good step”
  • Digital revolution will see the next wave, says FM.
  • Technology like machine learning, robotics, AI alongwith number of productive age group (15-65 years) are cross-cutting streams in India
  • Central government debt reduced to 48.7% of GDP in 2019 from 52.2%
  • Insurance Protection, Digital Penetration, Affordable Housing and Ayushman Bharat as key reforms of the government
  • Total of 60 lakh new taxpayers and 105 crore e-way bills generated under GST
  • This budget is to boost income and enhance purchasing power
  • Nirmala Sitharaman presents the statement of receipts and expenditure for FY21.
  Download MBG’s Union Budget 2020 Synopsis and Detailed Report from here.      

Tag: Budget 2020, India, Union Budget