New Delhi, February 1: All eyes will be Union Finance Minister Nirmala Sitharaman who will present the first full-year Budget 2020-2021 of the Modi 2.0 government today. Nirmala Sitharaman will begin her budgetary speech at 11 am. Sitharaman, India’s first woman Union Finance Minister in almost five decades, made her maiden speech in July 2019 when she presented the first Budget of the Narendra Modi government 2.0. Union Budget 2020-21 Predictions: From Income Tax Rates to Railways and Agriculture, Here's What FM Nirmala Sitharaman May Offer to Boost India's Plunging Economic Growth.

Hope are high that Sitharaman would raise the income tax exemption limit from current Rs 2.5 lakh to Rs 5 lakh. If reports are to be believed, Sitharaman may also extend the 5 percent tax rate for individual taxpayers earning upto Rs 7 lakh. According to a report of CNBC Awaaz, there will be no tax on first Rs 2.5 lakh, 5 percent on annual income between Rs 2.5 and 7 lakh, 10 percent on income between Rs 7 lakh and Rs 10 lakh, 20 percent on earnings between Rs 10 lakh and Rs 20 lakh. Economic Survey Tabled by Nirmala Sitharaman Ahead of Budget 2020-21, GDP Growth Pegged at 6-6.5 Percent.

At present, individual taxpayers pay 5 percent tax on income between Rs 2.5 and 5 lakh, 20 percent on income between Rs 5 lakh and Rs 10 lakh and 30 percent on earnings of over Rs 10 lakh. In the 2019 Interim Budget, then Finance Minister Piyush Goyal had announced a full tax rebate under Section 87A for individual taxpayers having taxable annual income up to  Rs 5 lakh. The ongoing economic slowdown and a sharp reduction in corporate tax rates leave little room for Sitharaman to dole out a big concession in income tax.

The Goods and Services Tax (GST) rates were lowered many times in 2019, resulting in a sharp decline in revenue. Besides income tax rejig, massive reforms are needed in the agriculture sector. Budgetary allocations for education and healthcare are expected to be increased as well. The defence sector could also see a hike in allocation which was kept unchanged in the July 2019 Budget.

Ahead of the Budget presentation, Sitharaman tabled the Economic Survey in Parliament on Friday. The Economic Survey projected India’s GDP growth at 6-6.5 percent in the next fiscal year. This marks a sharp decline from the estimate of 7 percent growth in last year’s Economic Survey. The pre-Budget survey pegged the FY20 growth rate to 5 percent.

(The above story first appeared on LatestLY on Feb 01, 2020 12:07 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).