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Indian Union Budget FY2020-21 | Ministry of Finance | India
This Article (Indian Union Budget FY2020-21) was Written by – Nani Nestham , Published on : 2-2-2020
Ministry of finance, India, Presented the Indian Union Budget for FY2020-21 in Loksabha, on 1-2-2020. The finance minister announced budget in loksabha will applicable from 1-April-2020.
Here we go discuss 10 topics about the Union Budget on twinkletalks.com
1. New Income Slabs Rates for taxpayers:
Ministry of Finance, introduced the new income tax slabs for the FY2020, check the details & compare with previous one in below tabular columns.
| FY 2020-21 | |
| Income slab (income per annum) | Tax % |
| Upto Rs. 2.5 Lakhs | 0 |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% |
| RS.5,00,001 to Rs. 7.5 Lakhs | 10% |
| Rs. 7,50,01 to Rs. 1 crore | 15% |
| Rs. 10,00,001 to Rs. 12.5 crore | 20% |
| RS. 12,50,001 to Rs. 15,00,000 | 25% |
| Above Rs. 15 crore | 30% |
| Fy2019 Regime | |
| Income per Annum | |
| Income Slab | Tax % |
| Upto Rs. 2,50,000 | 0 |
| Rs. 2,50,001 – Rs. 5,00,000 | 5% |
| Rs. 5,00,001 – Rs. 10,00,000 | 20% |
| Rs. 10,00,001 – Rs. 50,00,000 | 30% |
| Rs.50,00,001 – Rs. 1 crore | 30% |
| Rs. 1 Crore – Rs. 2 Crore | 30% |
| Rs. 2 Crore – Rs. 5 Crore | 30% |
| Rs. 5 Crore above | 30% |
- Cess and surcharge on income tax are the same as in FY2019-20.
- taxpayers have an option of choosing, anyone, FY slab rates as their convenience.
2. Agriculture:
- Rs.2.83 Lakh Crores Budget was allocated to the Agriculture Sector.
- Ministry of Finance planned to expand the scheme PM KUSUM – Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan Scheme, target to reach 20 Lakh farmers by setup standalone solar pumps to solarise their power grid.
- After installing the solar pumps the Farmers can use the power without any cost, its benefit for the farmers.
- Farmers can earn the money on NON-cultivating land also by selling power from Grid to Distribution Companies (DISCOMS).
This scheme was divided into 3 Stages listed as below tabular column.
| Stages | Process |
| A | 10,000 MW of decentralised ground-mounted Grid-connected renewable power plants |
| B | Installation of 17.50 lakh standalone solar-powered agriculture pumps. |
| C | Solarisation of 10 lakh Grid-connected solar-powered agriculture pumps. |
- Target = To reach solar Capacity of 25,750 MW by the year 2022.
3. Health Sector :
- Ministry of Finance allocated Rs.69,000 Crores to the health sector.
4. Sanitation:
- Total Rs.12,300 Crores allocated for Swachh Bharath Mission.
5. Education :
- Ministry of finance allocated Rs.99,300 crores for the Education sector.
- Rs. 3,000 Crores allocated for skill development.
6. Banking Sector :
- Ministry of finance increased the Insurance of bank deposit up to Rs. 5 Lakhs per deposition.
- Currently, bank deposit insurance was Rs.1 Lakhs per deposition.
7. Removal of deductions :
- The Indian finance minister Nirmala sitharaman garu announced in the budget speech of FY 2020-21, Ministry of Finance has removed 70 Tax exemptions & deductions for taxpayers which are available in the old regime.
8. Dividend Distribution Tax :
- From the FY2020–21 Companies no need to be required to pay DDT to the government while giving the dividends to their investors from their profits.
- Dividend deduction tax was going to apply on the investor’s who receive dividends from the companies.
9. Custom Duty on Imported Electronic vehicles :
- Ministry of finance increased the customs duty on imported electronic vehicles. So they can promote Local production under the theme of “Make in India”.
- As a result, the ministry of finance estimating a gradual increase in domestic value addition capacity in India.
| Custom duty on | forms of | present% | from FY2020 |
| CBUs | commercial Evs | 25% | 40% |
| CBUs | Traditional commercial vehicles | 30% | 40% |
| SKD | passenger Evs | 15% | 30% |
| CKD | passenger Evs, 2,3-wheelers, Bus, Trucks. | 10% | 15% |
| SKD | Electric buses, trucks, 2 wheelers | 15% | 25% |
10. Custom duty on Toys, furniture, footwear :
- Indian government hikes custom duty on imported toys, furniture, footwear.
- Indian government decide to promote Local productions, as a result, the employment will be increased in-country.
| Custom duty | ||
| On Product | Present | from FY2020 |
| Footwear | 25% | 35% |
| Parts of footwear | 15% | 20% |
| Toys | 20% | 60% |
| Goods of furniture | 20% | 25% |
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