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September 28, 2020

BUDGET 2020: Income tax rate for those earning Rs 5- 7.5 lakh reduced to 10%

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Budget 2020 is likely to focus on reforms aimed at reviving the sliding economy and stimulate consumer demand. The Economic Survey, released on Friday, has projected India’s growth rate at 6%-6.5% for 2020-21. The projection indicates that the economy has bottomed out.

In her second budget speech, the finance minister may announce cuts in personal income tax, sops for rural and agriculture sectors as well as an aggressive push on infrastructure spending.

The income tax rate for those earning Rs 5- 7.5 lakh reduced to 10%: FM

The finance minister slashed personal income tax rates in the new I-T regime. Those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as income tax as against the prevailing 20%.

“Those earning between Rs 7.5 lakh and Rs 10 lakh will pay an income tax of 15%. For income between Rs 10 to Rs 12.5 lakh, the new tax rate is 20 % and for income between Rs 12.5 lakh and Rs15 lakh, the revised tax rate will be 25 percent,” said the Finance Minister.

Tax rate of 30% on income above Rs they will continue 15 lakh, she said.

Around 70 of more than 100 income tax deductions and exemptions removed, in order to simplify the tax system and lower tax rates, she added.

Sitharaman’s Union Budget 2020 shall set out a road map to achieve the PM Narendra Modi-led government’s goal of making India a $5 trillion economy by 2025.

Follow Budget 2020 live updates here

‘Government brought big changes in the economy’

  • Inaugurating the budget speech, Nirmala Sitharaman said, “In May 2019, Prime Minister Narendra Modi got the mandate to form the government again.” He got a chance to serve the public with full humility. This mandate was not just for political stability, but also for economic policies. This is the budget of every woman, every minority, every hope and aspiration of every citizen of the country.
  • Between 2014 and 2019, our government brought major changes in economic policies. Now the basic of the economy is strong. Inflation is under control. Banks have also improved. “
  • “GST has been most important for the economy of this country. Its chief creator is not among us today. We pay tribute to Arun Jaitley. He used to say that India will remain India when the Center and the states work together for shared prosperity. The consensus among the GST Council states that India can forget the differences for the national interest. “

‘People are able to save money due to GST’

  • “GST has benefited in logistics and transport. Withdrawal of check posts reduced costs by 20%. Inspector Raj is over. Now people are able to save 4% of their family’s monthly expenses due to GST. The GST Council has been working to solve the problems of the people.
  • We have added 6 million new taxpayers. 40 crore returns have been filed. The new return system is also coming into effect from 1 April.
  • A former Prime Minister said that the last person is not getting any benefit. Only 15 paise out of one rupee are reaching the people. But we have tried to provide direct and complete benefit to the people through Sabka Saath, Sabka Vikas. “
  • “We have been able to do this through schemes like Ayushman, Ujjwala, Insurance Protection and Affordable Homes.” The benefit that used to reach only a few people is now reaching more and more people. India has brought 271 million people out of the poverty line.
  • Our government is working to take the country forward. Two major changes are taking place – technology is changing and the productive workforce is also growing. The efforts we have made in the last 5 years have helped in moving the country forward. “
  • “This budget stands on three themes. Aspirational India, Economic Development for All and Caring Society. Digital Revolution has brought India to the forefront of leadership worldwide. “

Also narrated

Sitharaman also recited the Kashmiri language of the poet Dinanath Kaul ‘Nadeem’ – “Our country is like a blooming Shalimar Bagh, our country is like a lotus-like blooming in Dal Lake, as the warm blood of young people, my country, your country, our country, the most beloved country in the world. ”

16 point aspirational India

  • “Our government is committed to double the income of farmers.” We have focused on 6.11 crore farmers. There is a need to liberalize the farmers market. There is a need to invest more in agricultural produce, logistics. It has scored 16 action points. “
  • “First – to encourage the State Governments that promote modern laws like marketing of agricultural produce, implementation of contract farming law.” Second, the water crisis is a big challenge. We will focus on 100 districts facing water scarcity. Third- Annadata also became an energetic person. Fourth – Our government will promote balanced use of fertilizer. This will prevent excessive use of chemical fertilizer. “
  • “The government will help 20 lakh farmers to install solar pumps. We will provide grid connected pumps to 1.5 million other farmers.
  • Will also increase solar power generation. If farmers have vacant or barren land, they will be able to install solar power generation units so that they can sell the solar power produced from there. ”
  • “Fifth – India has a capacity of 162 MT cold storage. We will promote warehouse construction at the block and taluk level. The Food Corporation and the Central Warehouse Corporation will also make cold storage on their land. “
  • Sixth- Self-help groups, especially women self-help groups will be able to promote village storage. She will collect the seeds and give the seeds to the farmers in the villages when they need them. “
  • “Seventh – Indian Railways will build Kisan Rail. They will arrange for storage in trains. “
  • “Eighth – Agricultural flying will also begin. This will be done through the aviation ministry. This will boost agricultural produce from the northeast and tribal areas. “
  • “Ninth – food is more than the target in horticulture”. We will promote a product in a district by dividing it into clusters. “Tenth- will promote the integrated farming system. Zero budgets will encourage farming and organic farming. “11th – Financing on Negotiable Warehousing Receipts.”
  • “12th – Non-banking finance companies are active. The NABARD scheme will be extended. In 2021, 15 lakh crore rupees have been kept for agricultural credit. “
  • “13th – Will eliminate livestock diseases.” Will use MNREGA in it. Milk will double the processing capacity. 53 MT to 108 MT. “
  • “14th – Will work on Fisheries.”
  • “To increase fish production to 200 million tonnes by 15th – 2023.”
  • “16th – Deendayal will promote self-help groups under Antyodaya Yojana.”
  • “2.83 lakh crores will be spent on agricultural activities, irrigation and rural development.”
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