Budget 2020 -Taxation
In terms of direct taxation, the aim of budget 2020 is to reduce confusions and misunderstandings from the previous budget. The budget 2020 has sketched out a perfect bifurcation on the taxpayers and the per cent tax to be paid by individuals, based on their income. The ultimate aim of this change was to lighten the burden of middle-class taxpayers.
An exemption is provided for taxpayers with an income of fewer than 2.5 Lakhs. This is a carryover from the budget of the previous year. Similarly, a 5 per cent tax is imposed on people with an annual income of fewer than 5 Lakhs. However, there is a drop in the per cent tax imposed on people with an annual income between 7.5 Lakhs and 15 Lakhs. This has been done to improve the life of middle-class earners. The distinction is easily understandable and avoids many confusions.
Apart from this, the current budget has planned to remove and redefine exemptions and deductions. This has been planned for around 100 different products. This plan has been made mainly to reduce the confusions from the previous budget on exemptions.
The biggest problem for people who run business is to file taxes correctly and at the right time. To expand the corporate sector, the Indian budget has proved to be one of the lowest taxation countries for corporate. This is believed to enhance the number of corporates in the country.
The next best thing about this budget for the young minds of the country is the waiver on start-up taxation. Start-ups with turnover less than 100 crores, get a 100 per cent deduction for 3 consecutive years, out of 10 years. This is believed to increase the number of start-ups in the country.
To make India more favourable for investments, Dividend Distribution Tax is removed. The next good news for foreign investors is that tax concession is made for foreign investors. This is believed to increase the number of foreigners who invest in Indian Shares and companies. Cooperatives have also been exempted from Alternative Minimum Taxes. This is again directed towards the improvement of the cooperatives in the country.
To make sure that every family in India owns a home, this budget has come up with a waiver of up to 1.5 Lakhs on housing loan interest. Apart from this, there is also an added extension in the repayment duration.
This includes GST and customs duty that is to be paid by consumers. To increase the number of customers asking invoice, rewards incentives have been created for consumers who seek invoice during purchase. Regarding customs duty, there is a fall in 10 per cent duty for footwear and 5 per cent fall for furniture. Customs duty for raw materials such as chemicals and plastics is reduced. On the other hand, goods that are manufactured in India such as automobile goods are given a hike in the customs duty. Cigarettes and other tobacco-related products are expected to have a rise in excise duty under the budget 2020.
To make sure that all Indian citizens get to know on the taxation, the process has been made simple. Instant PAN allotment, based on the Aadhar card of the individual is the first step in this process. A few banks have undergone amalgamation under this budget. To minimize the losses from these amalgamations, amendments have been proposed to the Income Tax Act. Aadhar based verification of taxpayers is to be done. This is mainly to eliminate and rule out the dummy or non-existent units.
For charity institutions, a specific serial number called Unique Registration Number(URN) is to be provided. However, provisional registration is allowed for new charity organizations for up to 3 years. The process of registration is to be made completely electronic, to simplify the process further.
Amendment of customs acts to ensure that all the imported goods are screened properly before entering the country. Certain sensitive goods are demanded with the Rule of Origin. Additional measures are taken to check the dumping of goods and the import of subsidized goods into the country. The best part of the import section is that suggestion is to be crowdsourced for exemptions from customs duties.
Overall, these measures are formulated to make India a better place for investments and new start-ups. This is believed to generate income to the growing Indian economy.
Budget 2020 – Transport
For any country to progress the field of mobility or transport is highly essential. This includes all modes of transport such as roadways, railways, the sea as well as air transportation. Not just for the people to move from one place to another but also to circulate products and goods within and outside the country. India being a country with extreme weather conditions and different landforms, it is quite difficult to rely on just the roadways to transport goods and commodities. Here are a few noteworthy schemes from the ministry of finance under the budget 2020 for the betterment of transport in India.
A total of Rs.1.7 Lakh crore has been allocated extensively for the improvement of transport in the country. The major projects to be carried out under this funding is,
These are the major roads in the country connecting different states. To enhance the highways in India, 2500Km access control highways, 9000 kilometres of economic corridors, 2000kilometres of coastal and land port roads and 2000 kilometres of strategic highways are to be created. All these highways are expected to be created in a hastened way to ensure quick completion of the roads.
Delhi-Mumbai expressway, connecting two major hubs in the country is expected to be completed by 2023. And further projects on Chennai-Bengaluru expressway is to be started from the allocated funds. There are plans to monetise at least 12 lots of highway bundles which extends over 6000 kilometres before 2024. All these make sure that the roadways in the country are sufficient enough to connect different states.
To use the railroads efficiently, large solar power capacity to be set up parallel to the existing railroads, on lands owned by railways. This makes sure that the space owned by railways is used efficiently. Four stations have been chosen for redevelopment and operation of about 150 new passenger trains, is to be established through PPP.
Tourism is one major source of income to the country. To improve the number of tourists to the country, the number of Tejas type trains are to be initiated. These trains connect iconic tourists destinations in India. This is believed to improve tourism in the country.
Apart from this, high-speed trains are to be operated between Mumbai and Ahmedabad. This again will help in improving the industrialisation of the country. The Bangalore suburban project is to be quickened. The entire project costs around, Rs.18600 crore. This is expected to have a fare similar to the metro. The share between the central government and the external source is expected to be 20 per cent and 60 per cent respectively.
Apart from this, the railways have also made other great achievements. This includes setting up of 550 WiFi settings in the country. Also, zero unmanned crossings is yet another achievement in the field of railways. The electrification of tracks is yet another major achievement by the Indian railways.
Corporatization of major ports to ensure proper trade. Improving seaports to ensure more trade contacts and exports through seaways. The prime minister’s Arth Ganga concept to improve the economic activity in the riverbank areas. All this has been formulated to improve the economy, by enhancing transport.
The new policies in the field of air transports include the Udaan scheme. This has been initiated to improve airway transport in the country. Under this scheme, 100 new airports are to be created. The air felt number is expected to go up from 600 to 1200 shortly. The air cargo is yet another way to improve the import and export of commodities in the country. As a result, this will help build a stronger and better future in terms of trade for the country.
Overall, it is believed that there would be a significant improvement in the field of transport under this budget. This will increase the mobility of goods and also help people to move from one place to another. The schemes are made in such a way, that they connect the current major manufacturing and market hub of different commercial products. This will improve the rate of trade and indirectly the economy of the country.