Budget 2020 Highlight: No income tax for income up to Rs 5 lakh

Govt to raise funds via listing of LIC; Deposit insurance raised to Rs 5 lakh; FY21 fiscal deficit target pegged at 3.5% of GDP; DDT scrapped; cuts income tax on lower slabs

Budget 2020 Highlight:

– Govt to raise funds via listing of LIC

– Deposit insurance raised to Rs 5 lakh

– FY21 fiscal deficit target pegged at 3.5% of GDP

– FY20 fiscal deficit at 3.8% of GDP vs earlier target of 3.3%

– Companies Act to be amended to decriminalise civil offences

– FY21 nominal GDP growth pegged at 10%

– To bring new education policy; allocates Rs 99,300 crore for sector in FY21

– 100 more airports to be developed by 2025 to support UDAN scheme

– To introduce a new simplified personal tax regime

– No income tax for income up to Rs 5 lakh

– 10% income tax for those earning between Rs 5 lakh to Rs 7.5 lakh versus 20% earlier

– 15% income tax for those earning between Rs 7.5-10 lakh versus 20% earlier

– 20% income tax for those earning between Rs 10-12.5 lakh versus 30% earlier

– 25 income tax for those earning between Rs 12.5-15 lakh versus 30% earlier

– Income above Rs 15 lakh to continue to pay tax at 30%

– New income tax scheme is optional, without exemptions

– Dividend Distribution Tax (DDT) abolished, shifted to individuals instead of companies

– 100% tax exemption on Sovereign Wealth Funds’ India investments

– Tax holiday for affordable housing extended by one-year

– To amend I-T Act to allow faceless appeals

– FY21 divestment target: Rs 2.1 lakh crore versus FY20 target of Rs 1.05 lakh crore

– To launch new direct tax dispute settlement scheme; interest, penalty waived till March 31, 2020

– Excise duty hiked on tobacco, cigarettes raised

– FM Sitharaman expects market to recover on Monday, February 3

– Defence budget hiked by 6% from Rs 3.1 lakh crore to Rs 3.3 lakh crore