Budget 2020

  1. Custom Duty has been Increased.
  2. what is custom duty ?
  3. Customs Duty is a tax imposed on imports and exports of goods
  4. Customs duties may also be levied to protect the domestic industry from foreign competition
Why custom duty was hiked ? Labour-intensive sectors in Micro, Small and Medium Enterprise (MSME) are critical for employment generation. Cheap and low-quality imports are an impediment to their growth.

Local manufacturing will get a boost from the proposal to increase basic customs duty on goods such as mobile phone components, electric vehicle toys, furniture, electrical appliances and refrigeration machinery, but it is likely to hurt foreign single-brand retailers that rely on imports

5.Fiscal deficit slip from 3.3% to 3.8% in 2019-20, aiming for 3.5% next year

6. What is Fiscal Deficit ?

7. Fiscal Deficit is the difference between the total revenue and total expenditure of the government. It is an indication of total borrowings needed by the government to implement its Budget proposals for the year. Generally fiscal deficit occurs either due to revenue deficit or a major hike in capital expenditure. Capital expenditure is incurred to create long-term assets, such as factories, buildings and such other developments

8. There are around 5 lakh direct tax disputes. If taxpayers pay just the tax demanded, the interest and penalty will be waived – The 500,000 pending cases valued at about ₹8 lakh crore; interest, penalty waived if firms pay up before March 31.

The government could collect as much as ₹50,000 crore from this scheme.

9. New Income tax slab would benefit upto 40,000 Crore Rupees to Middle Class and also with new tax slab which offered to eliminate exemptions, potentially hurting demand for Insurance Companies that currently allow savers to claim deductions and lower their annual tax liabilities – if people choose the new income tax regime, the demand for life insurance in India could be hit.

10. Disinvestment of ₹2.1 lakh crore as been kept as target for next year, of which ₹90,000 crore will be strategic sales (privatisation) and the initial public offering of LIC will be the star of the rest

11. What is Disinvestment – Disinvestment in India meaning: Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.

12.What was the Disinvestment target for the last year ? It was 1,05,000 crore -collected till date was 18,000 crore gives a warning that next year’s target may not be easy to achieve

13.Telecom spectrum sales and taxes are estimated to bring in ₹1.33 lakh crore, a huge but optimistic figure given ,with the sector facing tough challenges – how far it may fetch no one knows

14.The dividend distribution tax has been abolished and all dividends will now be taxed fully in the hands of shareholders. This will raise the earnings per share of corporations, and benefit high-dividend companies. The markets hoped for the abolition of long-term capital gains tax but in vain.

This are the companies who gets benefits

15.The tax on cigarettes has been raised yet again

16. MSMEs will now be excused compulsory audit for turnover up to ₹5 crore, up from ₹1 crore

17.To nab rich Indians going abroad to escape high taxes, the definition of resident has been extended from 182 days to 240. NRIs living in zero-tax countries will have to pay Indian tax on global income. This, alas, is more likely to induce rich NRIs to give up Indian citizenship than pay higher taxes

18. The Deposit Insurance and Credit Guarantee Corporation has been permitted to increase deposit insurance coverage for a depositor, which is now ₹1 lakh, to ₹ 5 lakh per depositor – means your deposits would be safe upto 5 lakhs .

19.Funds allocated for Infra in Crores

20. The government will build 100 new airports by 2024 to improve regional connectivity and corporatise a major port that will be later listed.

India currently has 100 operational airports and have a total of 450 airstrips in the country. About 350 of them are not operational. Analysts said the government’s plan to make 100 airports operational in the next four years seems ambitious, and implementation would be the key

21.The move to provide more private passenger trains and increase solar capacity for the Indian Railways in the budget is focused on giving opportunities to the private sector as well as promote domestic manufacturing

In the current financial year, the Railways has proposed to offer 150 passenger trains to private players, while IRCTC started operating private trains, branded Tejas, on two different routes this year.

A budgetary support of ₹70,250 crore has been allocated for the Railways for FY21

22. Government has allocated this for welfare

RE And BE – BE stands for Budget Estimates; RE stands for Revised Estimates

23. How Investors are parking their money

24. The Budget proposes to provide Rs 99,300 crore for education in 2020-21, up from Rs 94,853.64 crore in 2019-20, while Rs 3,000 crore will be for skill development

25. How Government earns a rupee and spends a rupee

26. How Indians Pay Income tax

27. What was the Theme of this Budget 2020

28. New tax Slab

29. Subsidies paid by the government

30. How Much Central Government transfers money to states and union territories

31. Central Government expenditure

32. Rs 100 lakh cr has been proposed under National Infrastructure Pipeline (NIP) launched by FM on 31st Dec 2019. Over 4600 projects of the Central Government and 2247 projects of States will generate lakhs of jobs over the next 5 years in construction and in operation and maintenance once completed

33. Thank You