Synopsis: Union Budget 2020-2021

GENERAL:

Finance Minister says:

• This Budget Theme: Aspiration, Development, Compassion
• National security is the top priority of the government
• A new and simplified GST return system coming this April 2020
• Central govt's debt has come down to 48.7% in March 2019 from 52.2% in March 2014
• Government to incentivize farmers to go solar
• 'TB Haarega, Desh Jeetega' mission to be launched
• Swachch Bharat Abhiyan to get ₹12,300 crore
• Data is the new oil. A policy to be announced to enable private sector to build data centre parks throughout the country
• Conventional energy meters to be replaced by prepaid 'smart meters' in the next three years. Pre-paid meters (smart meters) will give consumers freedom to choose suppliers and tariff
• In large cities with population of over 1 million, clean air is a matter of concern
• Proposed to set up a national recruitment agency for conduct of computer-based online common eligibility test for recruitment to non-gazetted post
• Bank depositor money insurance cover increased to Rs. 5 Lakh from Rs. 1 Lakh
• Launch of a system for instant allotment of PAN on basis of Aadhaar

Education:

• Steps will be taken to deliver higher quality education
• Proposes FDI and ECB in Education
• New Education Policy (NEP) to be notified soon
• Degree-level full-fledged online education programme to be offered by the top 100 institutions in the country for deprived students
• Announces Rs 99,300 crore outlay for education sector in 2020-21 and Rs 3,000 crore for skill development
• Under the Study in India programme, an IND-SAT exam is proposed to be held in Asian and African countries
• Opportunities for young engineers: Internship with urban local bodies to be introduced
• Proposes National Police University and National Forensic Science University

Infrastructure:

• National Logistics Policy to be announced 
• Rs 1.7 lakh crore provided for transport infrastructure in 2020-21 
• Delhi-Mumbai Expressway to be ready in 3 years
• Announces Rs 20,000 crore for the renewable energy sector
• 100 more airports to be developed by 2025
• Five new smart cities to be developed

RAILWAY:

• No change in Passenger Fares
• Will set up Kisan Rail so that farm goods can be quickly transported across the country

DIRECT TAX:

• 'Taxpayer Charter' to be introduced as part of statute
• Dividend received will be taxable in the hands of taxpayer as per applicable tax slab

Individuals:

Tax Slabs as below (without claiming any deductions/rebates:

• Income up to Rs 5 lakh: NIL tax
• Income between 5 - 7.5 lakh: Tax at 10%
• Income between 7.5 - Rs 10 lakh: Tax at 15%
• Income between 10 lakh - 12.5 lakh: Tax at 20%
• Income between 12.5 lakh - 15 lakh: Tax at 25%
• Income above 15 lakh: Tax at 30%

Corporate:

• Corporate Income Tax stands at 22% for existing companies
• Dividend Distribution Tax (DDT) abolished. Dividend will be taxable at the hands of dividend recipient. 
• Concessional tax rate of 15% extended to new power generation companies