Budget 2020 Highlights
👉 ₹99,300 Crore Allocated Towards Education Sector And ₹3,000 Crore For Skill Development.
👉 Government To Sell Part Of Its Holding In LIC via IPO
👉 Dividends From Investment To Be Taxed In The Hands Of Recipients.
👉 Deposit Insurance Coverage To Be Increased To ₹5 Lakh From ₹1 Lakh
👉 PAN Card To Be Allotted If One Has An Aadhaar. No Need Of Any Other Document
👉 Degree-Level Full-Fledged Online Education Programme To Be Offered By Institutes In Top 100 in National Institutional Ranking Framework.
👉 Startups, Tax Burden On Employees Due To Tax On Employee Stock Options (ESOP) To Be Deferred By 5 Years (previous 1 Year) or Till They Leave The Company.
👉 Total Expenditure for FY2021 Estimated At ₹30.42 Lakh Crore, Receipts (Revenues) Estimated At ₹22.46 Lakh Crore.
Key Takeaways From Budget
◆ Budget Arithmetic Looks Reasonable, With The Deficit Revised Estimate At 3.8% For FY20 & 3.5% In FY21 vs Our Target Of 3.7% For Both Years.
◆ Corporate Tax Collection For FY21 Is Projected To Grow By 11.5%, Which Is In-line With Our Expectations, Assuming Nominal GDP Growth Of 10%
◆ Income Tax Growth Projection For FY20 and FY21 Is Quite Aggressive. Though The Collections From Amnesty Scheme And Change In Taxes On NRI Income Can Help In Bolstering The Income Tax Kitty.
◆ Tweak In The Existing Tax Regime Will Benefit Individuals Who Were Not Claiming Significant Deductions or Exemptions In The Previous Tax Regime.
◆ Contrary To Wide Expectations, Relief In The Form Of Extending Limits On Section 80c Benefits Did Not Materialize.
◆ On Indirect Taxes, GST Revenues For FY21 Looks Achievable, While Custom Collections Are Also Expected To Improve On Account Of Hike In Import Duty Of Several Products.
◆ FY21 Disinvestment Target Of ₹2.1 Trillion Is A Big Jump, Which Looks Achievable Given The Government's Intention To Divest Stake In LIC.
◆ FY20 Expenditure Estimates Clearly Show That The Government Chose To Support The Economy Over Obligation Of Fiscal Prudence.
◆ Simplified Income Tax Return With Complicated Calculations.
👉 ₹99,300 Crore Allocated Towards Education Sector And ₹3,000 Crore For Skill Development.
👉 Government To Sell Part Of Its Holding In LIC via IPO
👉 Dividends From Investment To Be Taxed In The Hands Of Recipients.
👉 Deposit Insurance Coverage To Be Increased To ₹5 Lakh From ₹1 Lakh
👉 PAN Card To Be Allotted If One Has An Aadhaar. No Need Of Any Other Document
👉 Degree-Level Full-Fledged Online Education Programme To Be Offered By Institutes In Top 100 in National Institutional Ranking Framework.
👉 Startups, Tax Burden On Employees Due To Tax On Employee Stock Options (ESOP) To Be Deferred By 5 Years (previous 1 Year) or Till They Leave The Company.
👉 Total Expenditure for FY2021 Estimated At ₹30.42 Lakh Crore, Receipts (Revenues) Estimated At ₹22.46 Lakh Crore.
Key Takeaways From Budget
◆ Budget Arithmetic Looks Reasonable, With The Deficit Revised Estimate At 3.8% For FY20 & 3.5% In FY21 vs Our Target Of 3.7% For Both Years.
◆ Corporate Tax Collection For FY21 Is Projected To Grow By 11.5%, Which Is In-line With Our Expectations, Assuming Nominal GDP Growth Of 10%
◆ Income Tax Growth Projection For FY20 and FY21 Is Quite Aggressive. Though The Collections From Amnesty Scheme And Change In Taxes On NRI Income Can Help In Bolstering The Income Tax Kitty.
◆ Tweak In The Existing Tax Regime Will Benefit Individuals Who Were Not Claiming Significant Deductions or Exemptions In The Previous Tax Regime.
◆ Contrary To Wide Expectations, Relief In The Form Of Extending Limits On Section 80c Benefits Did Not Materialize.
◆ On Indirect Taxes, GST Revenues For FY21 Looks Achievable, While Custom Collections Are Also Expected To Improve On Account Of Hike In Import Duty Of Several Products.
◆ FY21 Disinvestment Target Of ₹2.1 Trillion Is A Big Jump, Which Looks Achievable Given The Government's Intention To Divest Stake In LIC.
◆ FY20 Expenditure Estimates Clearly Show That The Government Chose To Support The Economy Over Obligation Of Fiscal Prudence.
◆ Simplified Income Tax Return With Complicated Calculations.
