Amid the ongoing economic slowdown, Finance Minister Nirmala Sitharaman has offered a massive relief to the salaried class with major cuts in the income tax rates. She also announced the abolition of Dividend Distribution Tax for companies. The two moves would cumulatively cost the Centre Rs 65,000 crores in the coming financial year. In another major announcement, Sitharaman announced that a portion of government's stake in the LIC would be sold through public offerings. Check full highlights of her Budget speech below.
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Union Budget 2020-21 Updates: Nirmala Sitharaman Relieves Salaried Class With Income Tax Rate Cuts, Announces LIC Stake Sale; Check Full Highlights
Sitharaman would be delivering the second Union Budget under the second Narendra Modi-led government. Sitharaman would be addressing the House at 11 am to present the fiscal roadmap. The live updates of her speech, as well as all Budget related news and updates, could be tracked here.
01 Feb, 13:46 (IST)
Finance Minister Nirmala Sitharaman concluded her Budget speech, which was nearly two hour and 40 minutes long. She tabled the Bill for passage after reading out the fiscal roadmap. The Lok Sabha was subsequently adjourned till February 3.
01 Feb, 13:42 (IST)
The stock market recorded a negative movement on the Budget day, with the Sensex tinkering by 600 points and Nifty going down by 149 points.
01 Feb, 13:35 (IST)
A 100 percent tax concession to sovereign wealth funds on infrastructure has been proposed by Finance Minister Nirmala Sitharaman during her Budget 2020-21 speech.
01 Feb, 13:32 (IST)
Finance Minister Nirmala Sitharaman has announced a reduction in tax rate on corporate societies to 22 percent, down from 30 percent at present.
01 Feb, 13:30 (IST)
Finance Minister Nirmala Sitharaman has
01 Feb, 13:25 (IST)
Apart from lowering the income tax rates, Finance Minister Nirmala Sitharaman has also announced the abolition of Dividend Distribution Tax (DDT). Corporates would no longer be required to pay DDT, the FM said, adding that the move would cost the Centre Rs 25,000 crore per annum but would feature India as an attracting investment destination.
01 Feb, 13:17 (IST)
"In this new personal income tax regime, income tax rates will be significantly reduced for the individuals who forgo certain exemptions and deductions," Finance Minister Sitharaman announced. She further added that by rejigging the income tax rates, a revenue loss of Rs 40,000 crore per annum would be faced by the Centre. Check Complete Tax Slabs Here.
01 Feb, 13:14 (IST)
The income tax rate has been lowered for those earning between Rs 12.5 lakh to Rs 15 lakh to 25 percent, down from the current rate of 30 percent. for those earning above Rs 15 lakh per annum, the rate will be 30 percent.
01 Feb, 13:12 (IST)
"Those with income between Rs 7.5-10 lakhs to pay tax at 15 percent against current 20%. Those with income between Rs 10-12.5 lakhs to pay tax at 20% against 30 percent," Sitharaman said in her Budget speech.
01 Feb, 13:07 (IST)
Finance Minister Nirmala Sitharaman announces the reduction of income tax rate, in a major relief to the salaried class. As per the changes proposed by the Centre, the tax rates for those earning between Rs 5-7.5 lakh has been lowered to 10 percent, from 20 percent currently prevailing.
01 Feb, 13:07 (IST)
Finance Minister Nirmala Sitharaman announces the reduction of income tax rate, in a major relif to the salaried class.
01 Feb, 13:01 (IST)
"We have estimated nominal growth of GDP for the year 2020-21 on the trends available, at 10 percent," announced Finance Minister Nirmala Sitharaman in her Budget speech.
01 Feb, 12:57 (IST)
The partial LIC disinvestment announced by Finance Minister Nirmala Sitharaman sparked an uproar in the House. Members of the Opposition benches marked their dissent against the government's decision to sell a portion of its stake in the LIC via IPO.
01 Feb, 12:54 (IST)
A part of the government stake in Life Insurance Corporation (LIC) of India would be sold by the Centre for "better management", announced Finance Minister Nirmala Sitharaman in her Budget speech.
01 Feb, 12:52 (IST)
National Recruitment Agency to be set up for conducting common online eligibility tests for recruitment to non- gazetted posts, announced FM Nirmala Sitharaman in her Budget speech.
01 Feb, 12:50 (IST)
The fiscal deficit target has been pegged at 3.5 percent for the financial year 2020-21. For the current fiscal, the deficit is seen to be ending at 3.8 percent, said Finance Minister Sitharaman.
01 Feb, 12:47 (IST)
Finance Minister Nirmala Sitharaman has announced Rs 100 crore allocation for the preparation of G20 summit, which India would be hosting in 2022.
01 Feb, 12:45 (IST)
Finance Minister Nirmala Sitharaman announced a raise from Rs 1 lakh to Rs 5 lakh in the Deposit Insurance Cover. Further allaying the concerns of depositors, Sitharaman said the hard-earned money of depositors in safe.
01 Feb, 12:42 (IST)
The Companies Act would be amended to decriminalise offences which are civil in nature, announced Finance Minister Nirmala Sitharaman.
New Delhi, February 1: Union Finance Minister Nirmala Sitharaman would be delivering the second Union Budget under the second Narendra Modi-led government. Sitharaman would be addressing the Parliament's Lower House at 11 am to present the fiscal roadmap. The live updates of her speech, as well as all Budget related news and updates, could be tracked here. Here Are The Highlights of Economic Survey Tabled by the Govt on January 31.
The Budget 2020-21 comes in the midst of a deepening economic slowdown, with all major international agencies, along with the Reserve Bank of India (RBI, lowering the growth projection for the current fiscal year. According to the central bank, this year may end with an estimated growth rate of 5 percent -- way below the 7.4 percent mark which the Centre had projected last year.
In order to given an impetus to the falling demand and shrinking the purchasing power, the Finance Ministry was expected to rejig the tax rates to relieve the middle class. By lowering the rates, experts opine that the government would be able to increase the spendable income among the middle class.
A section of the Opposition, including the Left Parties, have demanded an increase in the amount allocated for public welfare and public expenditure. The latter would include rollout of labour-intensive projects in public interest, which would end up increasing employment opportunities for the working and lower-middle class income groups.
The Economic Survey 2019-20, which is considered as a precursor to the fiscal roadmap that will be presented by the Centre, strongly recommended the Narendra Modi government to strive towards wealth creation. The survey tabled by Chief Economic Advisor (CEA) Arvind Subramanian asked the government to increase infrastructure expenditure to 1.4 trillion USD in order to reach the targeted 5 trillion USD economic size by 2024-25.
(The above story first appeared on LatestLY on Feb 01, 2020 08:20 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).