Here's what the Union Budget brought in 2020
Our take on the budget:
Quite a few expectations from the budget were not met. The tax structures have only led to confusion on how this is going to play out as we expect more details. There were no additional tax exemptions offered either. It appears to be a rather tepid budget where it seems like the government is focussing on long term growth versus creating short term spikes in the economy.
While Finance Minister Nirmala Sitharaman mentioned that the government wants to support women with more defined measures, the budget did not have any substantial reforms for women.
Here are key highlights across a few categories:
Increase in depositors insurance with banks from ₹1 Lakh to ₹5 Lakhs.
A partial sale of the government's stake in LIC.
A simplified tax return process starting 1st April 2020, where filing returns will have features such as SMS based filing for nil return, return pre-filling, and improved input tax credit flow.
Aadhar based verification of tax-payers.Instant PAN generation by providing Aadhar details.
Cash rewards to individuals to incentivise them to seek invoices.
An amount of ₹28,000 Cr to be spent on women's welfare, undefined in which manner.
Women self help groups to receive assistance in agriculture.
Tax payment on ESOPs (employee stock options) can be deferred by five years or till an employee leaves the company or whenever they sell their shares, whichever comes first.
A new tax regime introduced along with the existing old one.
As per the old tax regime, an individual can choose to make investments under Section 80 C and seek other exemptions.
New tax regime has slashed tax rates on the income tax slabs, but you cannot claim any exemptions. Individuals will have to calculate taxes due as per both methods and choose which is best for them.
New education policy to be announced soon that will focus on quality education and skill development.
Removal of dividend distribution tax to make investing in equities and equity funds more attractive.
As tax-payers, any dividends we earn on investments will be taxed in our returns.