[Feb] Facts giving feel of budget Flashcards
Features
- First ever paperless budget(made in India tablet)
2. Finance ministry app where all budget documents made available
important highlights of the Union Budget 2020-2021.
1.Opt-in Income tax scheme:
The budget proposes a new income tax structure for individuals willing to forego exemptions and deductions. It would be an opt-in income tax scheme.
Taxpayers can, however, opt for the new rates only if they give up almost all tax exemptions and deductions they enjoy under the current regime.
2.Abolishing the Dividend Distribution Tax:
will avoid double taxation applicable to dividends.
Currently, companies are required to pay a 15% tax plus applicable surcharge and cess on the dividends. Further, investors who receive more than ₹10 lakh as a dividend in a financial year have to pay a 10% tax on such income.
Centre has removed 15% tax plus applicable surcharge and cess on dividends, currently paid by companies. The dividend will now be taxed only in the hands of the investors.
3.Taxpayer’s Charter:
to improve the efficiency of tax administration.
proposal to amend the provisions of the Income Tax Act to mandate the Central Board of Direct Taxes to adopt a Taxpayers’ Charter, wherein the taxpayer’s rights are clearly laid out.
proposed several other steps to smoothen the administration of the IT regime, including enhancing the use of technology.
A provision for e-appeal
4.Tax relief
deferred tax payment on income earned from Employee Stock Option Plans (ESOPs). This will allow the employees to own shares in the employer without having to worry about organizing cash to pay taxes.
applies only to start-ups set up post-April 2016.
5.Preventing Tax abuse
changes to prevent tax abuse by citizens who don’t pay taxes anywhere in the world.
There has been a reduction in the number of days that an Indian citizen can be granted non-resident status for tax purposes from 182 to 120.
Citizens who don’t pay taxes anywhere will be deemed to be a resident of India.
The definition of ‘not ordinary resident’ has been tightened.
(update) only money earned in India by NRIs will be taxed. Notably, only income derived from an Indian business or profession will be taxable for such citizens.
6. Customs Duty
on a range of articles like household goods, electrical appliances, auto parts, footwear, furniture, and some mobile phone parts has been raised in the Union Budget.
The move is aimed to keep uncontrolled dumping in check. This will help uphold the interests of the MSME segment.
7.Tax on e-commerce transactions:
The budget proposed a new tax levy on e-commerce transactions as part of measures to widen the tax base.
E-com platforms will have to deduct TDS on all payments or credits to e-commerce participants at the rate of 1% in PAN/Aadhaar cases and 5% in non-PAN/Aadhaar cases.
If in need,this is good stuff,only read
https://www.youtube.com/watch?v=Aw_6k9zYg58
4.Deposit Insurance scheme discussed in budget?
8)proposed to increase the deposit insurance coverage for bank deposits to ₹5 lakh from ₹1 lakh.
Disinvestment related measures in budget?
plan is to raise ₹90,000 crores by selling a stake in public sector banks and financial institutions, and the remaining by selling a stake in central public sector enterprises.
As part of the disinvestment process, the government is planning to sell a part of its stake in the Life Insurance Corporation of India through an initial public offering.
Plans in Infrastructure?
1.Digital connectivity
BharatNet program to enhance broadband connectivity in rural areas. There is also the proposal for a new policy to allow private players to set up data parks in the country.
2.Air transport
100 more airports will be developed by 2025 to support the UDAN scheme,
3.Roadways
increase of 10% in its budgetary allocation
4.Shipping
at least one major port would be corporatized and then listed on the stock exchanges.
5.Railways
proposes 150 trains under the public-private partnership (PPP) mode and the redevelopment of four stations with the help of the private sector.
6.Power and Renewable energy
proposals for prepaid smart metering and freedom to choose power suppliers will lay the ground to bring competition in the sector and give consumers a choice.
7.Power and Renewable energy
prepaid smart metering and freedom to choose power suppliers
expansion of the national gas grid
building of solar power capacity along railway tracks
announces a concessional income tax rate of 15% for new power companies.
Social Sector & budget
-6400 cr for
Prime Minister Jan Arogya Yojana (PMJAY)
viability gap funding to set up hospitals in PPP mode under Ayushman Bharat.
expansion of the Jan Aushadhi Kendra Scheme to all districts.
setting up of medical colleges in existing district hospitals under the Public-Private Partnership (PPP) model
Education?
proposes enabling external commercial borrowings and FDI in higher education.
Budget from middle class lens(not included already covered points)?
-In times of economic slowdown, two ideas are often discussed:
The government resorting to heavy expenditure on infrastructure and the social sector in line with the Keynesian concept of pump priming.
The government tries to put more money in the pockets of the individual so that it can increase consumer demand.
,Current budget has applied both
-it was expected that there would be a drastic reduction in government capital expenditure. However still, the budget proposes to increase expenditure.
