Union Budget 2020-21 Pdf | केन्द्रीय बजट 2020 | Indian Budget 2020-21

• IMF– International Monetary Fund
• FDI- Foreign Direct Investment
• CPI– Consumer Price Index
• GDP– Gross Domestic Product
• FCNR– Foreign Currency (Non-Resident) Account
• GST– Goods and Service Tax
• TEC India- Transform, Energise and Clean India
• PACS– Primary Agriculture Credit Societies
• KVKs– Krishi Vigyan Kendras
• NAM– National Agricultural Market
• APMC– Agricultural Produce Marketing Committee
• MGNREGA– Mahatma Gandhi National Rural Employment Gurantee Act
• PMGSY– Pradhan Mantri Gram Sadak Yojana
• PMEGP– Prime Minister’s Employment Generation Programme
• NRDWP– National Rural Drinking Water Programme
• PMKK– Pradhan Mantri Kaushal Kendras
• SANKALP– Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme
• STRIVE– Skill Strengthening for Industrial Value Enhancement
• NTA– National Testing Agency
• ICDS– Integrated Child Development Services
• IRCTC– Indian Railway Catering and Tourism Corporation
• TIES– Trade Infrastructure for Export Scheme
• FIPB– Foreign Investment Promotion Board
• CERT-Fin- Computer Emergency Response Team for our Financial Sector
• IRFC– Indian Railway Finance Corporation Limited
• FFO– Further Fund Offering
• PMMY– Pradhan Mantri Mudra Yojana
• BHIM– Bharat Interface for Money
• UPI– Unified Payment Interface
• USSD– Unstructured Supplementary Service Data
• IMPS– Immediate Payment Service
• SIDBI– Small Industries Development Bank of India
• DBT- Direct Benefit Transfer
• FRBM– Fiscal Responsibility and Budget Management Act
• MAT– Minimum Alternate Tax
• MSE– Medium and Small Enterprises
• NPA– Non-Performing Asset
• MSME– Micro, Small and Medium Enterprises
• SIT– Special Investigation Team
• FPI– Foreign Portfolio Investor
• TDS– Tax Deducted at Source
• QIBs– Qualified Institutional Buyers
• SEBI- Securities and Exchange Board of India
• RBI– Reserve Bank of India
• CBDT– Central Board of Direct Taxation
• IPO– Initial Public Offering
• HUF– Hindu Undivided Family
• OECD– Organisation for Economic Co-operation and Development
• EBITDA– Earnings Before Interest, Taxes, Depreciation and Amortisation
• TCS– Tax Collection at Source
• FTC– Foreign Tax Credit
• MPEDA– Marine Products Export Development Authority
• APDEA– Anchorage Police Department Employees Association
• AAR– Authority for Advance Ruling
• FMV– Full Motion Video
• FEMA– Foreign Exchange Management Act
• LED– Light-Emitting Diode
• RCS– Regional Connectivity Scheme
• PCBs– Printed Circuit Boards
• VPEG– Vinyl Polyethylene Glycol
• MTA– Medium Quality Terephthalic Acid
• QTA– Qualified Terephthalic Acid
• NSSF– National Small Savings Fund

• Additional deduction of Rs. 1 lakh on interest paid for affordable house of Rs. 45 lakh, borrowed on or before March 31, 2020
• After interest deduction, affordable home buyers will gain tax benefit of Rs. 7 lakh over the period of interest deduction
• Cash withdrawals over Rs. 1 crore a year to be taxed at 2 per cent

Budget Highlights: Social Welfare

• One woman in every self-help group eligible for loan of Rs. 1 lakh under Mudra scheme
• Centre proposes to consolidate and streamline multiple labour laws into only four codes

Budget Highlights: Pensions

• Pension to be provided to three crore retail traders
• Pension for shopkeepers, retailers with turnover less than Rs. 1.5 crore

Budget Highlights: Growth

• Centre to invest in raising foreign direct investment in media and aviation
• There will be 100 per cent FDI for insurance intermediaries

Budget Highlights: Infrastructure

• 1.25 lakh km roads will be upgraded at a cost of Rs. 80,000 crore

Budget Highlights: Markets

• Centre proposes electronic fundraising platform to list social enterprises, voluntary organisations
• This will help social enterprises working for welfare raise capital

Budget Highlights: Economy

• India will grow to become a $3 trillion economy (from $2 trillion) in fiscal 2020

Budget Highlights: Income Tax

• No income tax for income less than Rs. 5 lakh a year
• Surcharge on individuals with taxable income of Rs. 2-5 crore raised to 3 per cent, and Rs. 5 crore to 7 per cent

Budget Highlights: Start-ups

• A TV programme for start-ups under Doordarshan, designed and run by start-ups themselves
• Angel investors and start-ups who file tax returns won’t be subjected to scrutiny
• E-verification will resolve the issue of identifying the investor and the source of funds

Budget Highlights: Companies

• Corporate tax rate of 25 per cent extended to all companies having annual turnover up to  Rs.400 crore

Budget Highlights: What is cheaper, what got costlier

• Electric vehicles, affordable houses, imported defence equipment, imported parts of electric vehicles, imported raw material for manufacture of artificial kidneys and imported wool fiber, wool tops have become cheaper.
• Petrol, diesel, cash withdrawal over Rs. 1 crore/year, imported auto parts, imported gold and precious metals, imported paper and paper products including printed books, imported loud-speakers, indoor and outdoor unit of split AC, imported plugs, sockets, switches, CCTV cameras, IP cameras, PVC, Vinyl flooring, Metal fittings, tiles, imported cashew kernels and cigarettes have become expensive.

• Union Budget is the most comprehensive report of the Government’s Advances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government’s accounts for the next Fiscal year called Budgeted Estimates.

• Direct and Indirect Taxes – Direct taxes are the one that fall directly on individuals and corporations. For
  example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by
  consumers when they buy goods and services. These include excise duty, customs duty etc.

• Fiscal Deficit -When the government’s non-borrowed receipts fall short of its entire expenditure, it has to borrow money form the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the Fiscal Deficit .

• Revenue Deficit -The difference between revenue expenditure and revenue receipt is known as revenue Deficit. It shows the shortfall of government’s current receipts over current expenditure.

• Primary Deficit -The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government’s borrowings are going towards meeting expenses other than interest payments.

• Fiscal policy – It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented though the budget and is the primary means by which the government can influence the economy.

• Capital Budget – The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties

• The revenue budget consists of revenue receipts of the Government and it expenditure.
• Revenue receipts are divided into tax and non-tax revenue.
• Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies.
• The non-tax revenue sources include interest on loans, dividend on investments.

• Budget Estimates – Amount of money allocated in the Budget to any ministry or scheme for the coming Financial year

• Guillotine – Parliament, unfortunately, has very limited time for Scrutinizing the expenditure demands of all the Ministries.
• So, once the prescribed period for the discussion on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding Demands for Grants, Whether discussed or not, to the
  vote of the House.
• This process is popularly known as ‘Guillotine’.

• Finance Minister Shri Arun Jaitley presents general Budget 2018-19 in Parliament.
• Budget guided by mission to strengthen agriculture, rural development, health, education, employment, MSME and infrastructure sectors
• Government says, a series of structural reforms will propel India among the fastest growing economies of the world. Country firmly on course to achieve over 8 % growth as manufacturing, services and exports back on good growth path.

• MSP for all unannounced kharif crops will be one and half times of their production cost like majority of rabi crops: Institutional Farm Credit raised to 11 lakh crore in 2018-19 from 8.5 lakh crore in 2014-15.
• 22,000 rural haats to be developed and upgraded into Gramin Agricultural Markets to protect the interests of 86% small and marginal farmers.
• “Operation Greens” launched to address price fluctuations in potato, tomato and onion for benefit of farmers and consumers.
• Two New Funds of Rs10,000 crore announced for Fisheries and Animal Husbandry sectors;   Re-structured National Bamboo Mission gets  Rs.1290 crore.
• Women Empowerment And Budget 2018-2019 Article – Yojana Magazine

• Loans to Women Self Help Groups will increase to Rs.75,000 crore in 2019 from 42,500 crore last year.
• Higher targets for Ujjwala, Saubhagya and Swachh Mission to cater to  lower and middle class in providing free LPG connections, electricity and toilets.
• Outlay on health, education and social protection  will be 1.38 lakh crore. Tribal students to get Ekalavya Residential School in each tribal block by 2022. Welfare fund for SCs gets a boost.
• World’s largest Health Protection Scheme covering over 10 crore poor and vulnerable families launched with a family limit upto 5 lakh rupees for secondary and tertiary treatment.
• Fiscal Deficit pegged at 3.5 %, projected at 3.3 % for 2018-19.

• Rs. 5.97 lakh crore allocation for infrastructure
• Ten prominent sites to be developed as Iconic tourist destinations
• NITI Aayog to initiate a national programme on Artificial Intelligence(AI)
• Centres of excellence to be set up on robotics, AI, Internet of things etc
• Disinvestment crossed target of Rs 72,500 crore to reach Rs 1,00,000 crore
• Comprehensive Gold Policy on the anvil to develop yellow metal as an asset class

• 100 percent deduction proposed to companies registered as Farmer Producer Companies with an annual turnover upto Rs. 100 crore on profit derived from such activities, for five years from 2018-19.
• Deduction of 30 percent on emoluments paid to new employees Under Section 80-JJAA to be relaxed to 150 days for footwear and leather industry, to create more employment.

• No adjustment in respect of transactions in immovable property where Circle Rate value does not exceed 5 percent of consideration.
• Proposal to extend reduced rate of 25 percent currently available for companies with turnover of less than 50 crore (in Financial Year 2015-16), to companies reporting turnover up to Rs. 250 crore in Financial Year 2016-17,  to benefit micro, small and medium enterprises.
• Standard Deduction of Rs. 40,000 in place of present exemption for transport allowance and reimbursement of miscellaneous medical expenses. 2.5 crore salaried employees and pensioners to benefit.

• Relief to Senior Citizens  proposed:-

• Exemption of interest income on deposits with banks and post offices to be increased from Rs. 10,000 to Rs. 50,000.
• TDS  not required to be deducted under section 194A. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes.
• Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.
• Increase in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB.

• Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020. Current investment limit  proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.

• More concessions for International Financial Services Centre (IFSC),  to promote trade in stock exchanges located in IFSC.
• To control cash economy, payments exceeding Rs. 10,000  in  cash made by trusts and institutions to be disallowed and would be subject to tax.
•  Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10 percent, without allowing any indexation benefit. However, all gains up to 31^st January, 2018 will be grandfathered.

• Proposal to introduce tax on distributed income by equity oriented mutual funds at the rate of 10 percent.
• Proposal to increase cess on personal income tax and corporation tax to 4 percent from  present 3 percent.

• Proposed changes in customs duty to promote creation of more jobs in the country  and also to incentivise domestic value addition and Make in India in sectors such as food processing, electronics, auto components, footwear and furniture.

•  Proposal to roll out E-assessment across the country to almost eliminate person to person contact leading to greater efficiency and transparency in direct tax collection.

On demonetisation

• Demonetisation is expected to have a transient impact on economy.
• We will have a great impact on the economy and lives of our people . The effects of Dem. are not expected to spill over next year.
• Demonetisation a bold and decisive measure and will lead to higher GDP growth.
• The effects of demonetisation will not spillover to the next fiscal.

Agriculture

• Sowing farmers should feel secure against natural calamities.
• Rs. 10 lakh crore as credit to farmers with 60 days interest waiver says FM
• NABARD fund to be increased to Rs. 40,000 crore
• Govt will set up mini lab in Krishi Vigyan Kendras for soiling:
• A dedicated micro irrigation fund will be set up for NABARD with Rs 5,000 cr initial corpus
• Irrigation corpus increased from Rs 20,000 crores to Rs 40,000
• Dairy processing infrastructure fund with be created initially with a corpus of Rs. 2000 cr
• Issuance of Soil cards has gained momentum
• A model law on contract farming will be prepared and shared with States

Rural sector

• Government targets to bring 1 crore households out of poverty by 2019
• During 2017-18, 5 lakh farm ponds to be taken up under MGNREGA
• Over Rs 3 lakh cr spend for rural India. MGNREGA to double farmers income
• Participation of women in mgnrega up to 55%
• During 2017-18, 5 lakh farm ponds to be taken up under MGNREGA
• Using space tech in a big way to plan MGNREGA works
• We propose to complete 1 crore houses for those without homes
• Allocating Rs. 19,000 cr for Pradhan Mantri Gram Sadak Yojana in 2017-18
• We are well on our way of achieving 100% rural electrification by March 2018.
• Swachh Bharat mission has made tremendous progress, sanitation coverage has gone up from 42% in Oct 13 to 60% now.
• Sanitation coverage in rural areas gone up from 42% in Oct 2014 to 60% now.

For youth

• Introduction of a system of measuring annual learning outcomes, innovation fund for secondary education.
• There will be a focus on 3,479 educationally-backward blocks
• Colleges will be identified based on accreditation
• Skill India mission was launched to maximise potential. 100 India International centres across country.
• Courses on foreign languages to be introduced.
• Skill India Mission was launched in 2015 to maximise the potential of our youth. 100 India International Skill centres will be established across the country.
• Steps to create 5000 PG seats per annum

For the poor; health care

• Mahila Shakthi Kendras – Rs. 500 cr allocated.
• Nationwide scheme for pregnant women – Rs. 6000 each will be transferred.
• For women and Kids – Rs. 1,84,632 cr. allocation investment
• Affordable housing to be given infrastructure status.
• Surplus liquidity – banks have already started reducing lending rates for housing
• Elimination of tuberculosis by 2025 targeted.
• 1.5 lakh health sub centres to be transformed into health wellness centre.
• Two new AIIMS in Jharkhand and Gujarat.
• Structural transformation of regulator framework for medical education in India
• Allocation for Scheduled Caste – Rs. 52,393 crore
• Aadhaar-based smart cards for senior citizens to monitor health.

Infrastructure

• A total allocation of Rs. 39,61,354 crore
• Total allocation for Railways — Rs. 1,31,000 crore
• No Service charge while booked tickets with IRCTC
• Raksha coach with a corpus of Rs. 1 lakh cr fore five years (for passenger safety)
• Unmanned level crossings eliminated by 2020
• 3,500 km of railway lines to be commissioned this year up from 2,800 km last year.
• SMS based clean my coach service started
• Coach mitra facility – to register all coach related complaints
• 2019 – bio toilets for all trains
• 500 stations to be made differently-abled friendly
• Railways to partner with logistics players for front end and back end solutions for select commodities.
• Railways will offer competitive ticket booking facility
• 2,000 km for coastal connectivity of roads –
• Rs. 64,000 crore allocation for highways.
• Allocation of high speed Internet 1,50,000 gram panchayats

Energy sector

• A strategic policy for crude reserves will be set up
• Rs. 1.26,000 cr for energy production-based investments received
• Trade infra export scheme will be launched 2017-18

Financial sector

• FDI policy reforms – more than 90% of FDI inflows are now automated.
• Shares of Railway PSE like IRCTC would be listed on Stock Exchanges.
• Bill on resolution of financial firms to be introduced in this session of parliament.
• Decided to abolish FIPB in 2017-18.
• Foreign Investment Promotion Board to be abolished.
• Revised mechanism to ensure time bound listing of CPSEs
• Computer emergency response team for financial sector to be formed.
• Pradhan Mantri Mudra Yojana lending target at Rs 2.44 lakh crore for 2017-18
• Digital India – Bhim app will unleash mobile phone revolution – two new schemes to promote the app.

Fiscal situation

• Total expenditure – Rs. 21, 47,000 crore
• Abolition on plan, non-plan expenditure, focus on capital expenditure ( Capital expenditure will be 25.4 per cent)
• Rs. 3,000 crore under Dept of Economic Affairs for implementing Budget announcements.
• Defence expenditure, excluding pension, at Rs 2,74,114 crore
• Expenditure in science and technology — Rs. 37,435 crore
• Total resources transferred to States and UTs is Rs 4.11 lakh crore
• Recommended 3% fiscal deficit for three years with deviation of 0.5% of GDP.
• Revenue deficit – 1.9 %
• Pegged fiscal deficit of 2017-18 at 3.2% of GDP and remain committed to achieving 3% in the next year.

On funding of political parties

• Maximum amount of cash donation for political parties will be Rs 2,000 from any one source from Rs 20,000
• Political parties will be entitled to receive donations by cheque or digital mode from donors.
• Amendment is being proposed to RBI Act to enable issuance of electoral bonds that government will scheme. Donor can purchase these bonds from banks or post office via cheque or digital transactions. They can be redeemed only by registered political parties.

Tax proposals

• India’s tax to GDP ratio is not favourable.
• Out of 13.14 lakh registered companies, only 5.97 lakh companies have filed returns for 2016-17.
• Proportion of direct tax to indirect tax is not optimal.
• 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.
• Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.
• Only 1.72 lakh people showed income of more than Rs 50 lakh a year.
• Between Nov 8 to Dec 30: Deposits between Rs 2 lakh and Rs 80 lakh was made in 1.09 crore accounts.
• Net tax revenue of 2013-14 was Rs 11.38 lakh crore.
• Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.
• 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.
• Rate of growth of advance tax in Personal I-T is 34.8% in last three quarters of this financial year.
• Holding period for long term capital gain lowered to 2 years
• Propose to have carry-forward of MAT for 15 years.
• Capital gains tax to be exempted for persons holding land from which land was pooled for creation of state capital of Telangana.
• Corporate tax: In order to make MSME companies more viable, propose to reduce tax for small companies of turnover of up to Rs 50 crore to 25%. About 67 lakh companies fall in this category. 96% of companies to get this benefit.
• Propose to reduce basic customs duty for LNG to 2.5% from 5%
• SIT on black money suggested no cash transactions of more than Rs 3 lakh. Govt has accepted this proposal.
• Income Tax Act to be amended. No transaction above Rs 3 lakh to be permitted in cash.
• Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000.
• Net revenue loss in direct tax could be Rs. 20,000 crore.

Personal Income Tax

• Existing rate of tax for individuals between Rs. 2.5- Rs 5 lakh reduced to 5% from 10%
• All other categories of tax payers in subsequent brackets will get benefit of Rs 12,500.
• Simple one page return for people with annual income of Rs. 5 lakh other than business income.
• People filing I-T returns for the first time will not come under govt. scrutiny.
• 10% surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore to make up for Rs 15,000 crore loss due to cut in personal I-T rate. 15 surcharge on individual income above Rs. 1 crore to remain.

Agriculture

• Total allocation for agriculture and farmer welfare at Rs 35984 crores
• 28.5 lakh heactares of land wil be brought under irrigation.
• 5 lakh acres to be brought under organic farming over a three year period
• Rs 60,000 crore for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation.
• Dedicated irrigation fund in NABARD of Rs.20.000 cr
• Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.

• Rs38,500 crore for Mahatma Gandhi MGNREGA for 2016-17
• Swacch Bharat Abhiyan allocated Rs.9,500 crores.
• Hub to support SC/ST entrpreneurs
• Government is launching a new initiative to provide cooking gas to BPL families with state support.
• LPG connections to be provided under the name of women members of family: Rs 2000 crore allocated for 5 years for BPL families.
• 2.87 lakh crore grants to gram panchayats and municipalities – a quantum jump of 228%.
• 300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
• 6 crore additional households to be covered under Digital Literacy scheme in next 3 years
• Four schemes for animal welfare.

• 2.2 lakh renal patients added every year in India. Basic dialysis equipment gets some relief.
• A new health protection scheme for health cover upto 1 lakh per family.
• National Dialysis Service Prog with funds thru PPP mode to provide dialysis at all district hospitals.
• Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
• PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened

• 10 public and 10 private educational institutions to be made world-class.
• Digital repository for all school leaving certificates and diplomas. Rs. 1,000 crore for higher education financing.
• Rs. 1,700 crore for 1500 multi-skill development centres.

• Rs. 3000 crore earmarked for nuclear power generation
• Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
• Govt to provide incentive for deepwater gas exploration
• Deepwater gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.

• Rs. 27,000 crore to be spent on roadways
• 65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms/day
• Shops to be given option to remain open all seven days in a week across markets.
• Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY, – Rs 97,000 crore
• India’s highest-ever production of motor vehicles was recorded in 2015
• Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore
• New greenfield ports to be developed on east and west coasts
• Revival of underserved airports. Centre to Partner with States to revive small airports for regional connectivity
• 100 per cent FDI in marketing of food products produced and marketed in India
• Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
• Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation.
• MAT will be applicable for startups that qualify for 100 per cent tax exemption
• Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax proposals result in gain of Rs.20,670 crore

• Banks get a big boost: Rs 25,000 crore towards recapitalisation of public sector banks. Jaitley says: Banking Board Bureau will be operationalised, we stand solidly behind public sector banks.
• Target of disbursement under MUDRA increased to 1,80,000 crore
• Process of transfer of government stake in IDBI Bank below 50% started
• General Insurance companies will be listed in the stock exchange
• Govt to increase ATMs, micro-ATMs in post offices in next three years

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