Daijiworld Media Network - New Delhi

New Delhi, Feb 1: Amidst the economy struggling with a six-year low GDP growth, Union Finance Minister Nirmala Sitharaman presented the Budget 2020 on Saturday that focused on raising the purchasing power by cutting income tax rates and boosting rural income.

This was the longest Budget speech by any finance minister, going beyond 2 hour 30 minutes. Sitharaman, 60, broke her own record of a 2-hour-17-minute-long maiden Budget speech in July 2019.

In a shot in the arm for the middle class, Nirmala Sitharaman has proposed a new simplified tax regime soon. “Zero income-tax for those earning up to Rs 5 lac, 10% tax for income between Rs 5 lac-Rs 7.5 lac; 15% tax for income between Rs 7.5 lac to Rs 10 lac; 20% tax for income between Rs 10 lac to Rs 12.5 lac; 25% tax for income between Rs 12.5 lac to Rs 15 lac; 30% tax for income above Rs 15 lac. No income tax for those with taxable income below Rs 5 lac,” announced Sitharaman.

Fiscal deficit target pegged at 3.8% of GDP for FY20. Insurance cover for bank depositors has been raised from Rs 1 lac to Rs 5 lac.

Key highlights of Union Budget 2020:

>> 100 exemptions allowed under I-T Act now

>> Around 70 exemptions removed under the new regime

>> Remaining I-T exemptions to be reviewed in the coming days

>> Govt to abolish Dividend Distribution Tax (DDT)

>> Dividends to be taxed in the hands of recipients

>> Revenue foregone due to DDT removal Rs 25,000 crore

>> To allow deduction of dividend received by holding companies from subsidiary

>> Corporate tax cut to 15% for power generation companies

>> Revenue foregone due to DDT removal Rs 25,000 crore

>> Tax payment on Esops from startups deferred by 5 years when they leave company

>> 100% tax exemption for SWFs for infra investment

>> Turnover limit for startups claiming tax deduction raised to Rs 100 crore

>> Tax holiday for qualified startups raised to 10 years

Updates:

1.43 pm - Under Vivad Se Vishwas Scheme, taxpayer to pay only amount of disputed tax, will get complete waiver on interest and penalty, if scheme is availed by March 31, 2020 - FM

1.41 pm - Govt to further ease process of allotment of PAN. Govt to launch system for instant allotment of PAN on basis of Aadhaar - FM

1.40 pm - Disinvestment target has been raised to Rs 2.10 lakh crore in FY21 from Rs 1.05 lakh crore in FY20.

1.38 pm - Budget proposes deferment of tax payment by employees on ESOPs from startups by five years.

1.34 pm - Govt to launch new direct tax dispute settlement scheme to be launched: FM

1.32 pm - Finance Minister Nirmala Sitharaman says concessional corporate tax cut to be extended to new domestic companies engaged in power generation.

1.30 pm - Dividend Distribution Tax to be removed, companies will not be required to pay DDT, dividend to be taxed only at the hands of recipients at applicable rates: FM

1.21 pm - Startups have emerged as the engine of growth used ESOPs plans to attract and retain talent. To ease the tax burden the government has announced tax relief to startups.

1.19 pm - FM says that 100 different exemptions are provided under the current Income Tax Act. "I have removed 70 of them," says FM.

1.16 pm - Under the newincome tax regime,there will be a significant reduction in tax paid even by those having an annual income of Rs 15 lakh. But the new tax regime will be optional - PM

1.14 pm - There was Rs 40,000 crore revenue loss to the government with the new tax regime, says FM.

1.10 pm - FM says that the tax proposals would bring ease of compliance and reduce litigation. Nirmala Sitharaman says a new personal income tax regime would be reduced who forego deductions and exemptions.

1. Tax of only 10 percent will be charged to Rs 5 lakh-7.5 lakh income as against prevailing 20 percent rate.
2. From Rs 7.5 lakh-10 lakh income, a tax rate of 15 percent against 20 percent prevailing rate.
3. For income Rs 10-12.5 lakh, a rate of 20 percent as against 30 percent earlier.
4. For income between Rs 12.5 lakh-15 lakh will be taxed at 25 percent as against 30 percent.
5. For those at Rs 15 lakh plus income, tax will be 30 percent.

1.07 pm - Income tax for income between Rs 5 lakh to Rs 7.5 lakh halved to 10 per cent from 20 per cent.

12.57 pm - Government proposes to sell a part of its holding in LIC by initial public offer - FM

12.53 pm - The government proposes to increase the investment limit of FPIs in corporate bonds from 9% to 15%.

12.49 pm -  The government is planning to sell its stake in IDBI Bank to bidders - FM

12.46 pm - Deposit insurance and credit guarantee for depositors enhanced from Rs 1 lac to Rs 5 lac.

12.42 pm - We wish to enshrine in the statutes a taxpayer charter through this Budget. Our govt remains committed to taking measures to ensure that our taxpayers are free from tax harassment of any kind - Sitharaman

12.41 pm - India will host G-20 presidency in the year 2022 and Rs 100 crore has been allocated for preparation: FM

12.39 pm - Tax harrassments will not be tolerated. The government will launch a common entrance test for appointment of non-gazetted officers. The govt also proposes to amend Companies Act - FM

12.37 pm - The Modi government is clean and corruption-free. It trusts every citizen of the country, the aspirational youth, the risk-taking entrepreneur and hard-working farmers, says FM.

12.35 pm - Clean air is a matter of concern in large cities, propose to encourage states to formulate and implement plans to ensure clean air. Allocation for this purpose is Rs 4,400 crore: FM

12.34 pm - Finance Minister Nirmala Sitharaman: Indian Institute of Heritage and Culture to be established under Ministry of Culture.

12.29 pm - Wealth creators will be respected in this country, says FM Sitharaman.

12.27 pm - The government allocates Rs 2,500 crore for tourism for FY21.

12.25 pm - Rs 85,000 crore allocated for SCs and OBCs in Budget for FY 2020-21: Sitharaman

12.20 pm - I propose to provide Rs 35, 600 crore for nutrition-related programmes for 2020-21:  FM Sitharaman

12.19 pm - Rs 3.6 lakh crore approved for Jal Jeevan Mission: FM

12.16 pm - Stating that the statistics were not to politicise issues, FM says, "'Beti bachao, beti padhao' yielded tremendous results. The gross enrolment ratio of girls across all levels of education now higher than boys."

12.15 pm - Will achieve seamless delivery of services through digital governance: FM

12.14 pm - Govt allows tech companies to set up Data Centre parks to provide internet to citizens. It allocates Rs 6,000 crore for BhartatNet.

12.11 pm - FM urges states to replace traditional metres with smart metres in next three years.

12.09 pm - FM proposes National Technical Textile mission with an outlay of Rs 1,480 crore over four years to cut down imports.

12.07 am - I propose to provide Rs 27, 300 crore for development for industry and commence for year 2020-21: FM

12.04 pm - A proposal to set up solar plants on the land owned by Railways is under consideration, says FM.

11.59 am - India needs to boost domestic manufacturing in the electronic value chain, says FM. India needs to manufacture net worth products must boost domestic manufacturing. Mobile phones, electronic equipment and semiconductor packaging industries will be promoted, she adds.

11.57 am - FM proposes to set up Investment Clearance cell for end-to-end service.

11.55 am - We propose Rs 99, 300 crore allocated for education sector in 2020-21 and Rs 3,000 crore for skill development: Sitharaman

11.53 am - There is a shortage of qualified medical doctors both general practitioners and specialists; it is proposed to attach a medical college to a district hospital in PPP mode; details of the scheme to be worked out soon, says FM.

11.51 am - To start degree level full-fledged online programme by top 100 universities, Study In India and Ind Sat Exam tobenchmark foreign candidates to study in India - FM

11.50 am - Urban local bodies will offer internships to engineers for a year - FM

11.48 am - FM says that the govt is commited to open defecation free (ODF) plus to sustain. Rs 12,300 crore allocated for Swachh Bharat Mission.

11.45 am  - India set to have largest working age population by 2030, says FM.

11.43 am - Krishi Udaan to be launched by Civil Aviation Ministry to transport agri-products to national as well international destinations, For sector comprising agriculture, allied activities, irrigation and rural development, an allocation of Rs 2.83 lakh crores has been made for 2020-21 - FM

11.39 am - Milk processing capacity to be expanded to 108 tonne from 53.5 tonne, says FM

11.38 am - FM says fish farmer producer organisation to be set up. Under the Deendayal Antyodaya Scheme, FM says 58 lakh SHGs are mobilised and they will be further expanded.

11.37 am - NBFCS and cooperatives are active in agriculture. NABARD refinance scheme will be expanded, says FM.

11.36 am - Agriculture credit target has been set at Rs 15 lakh crore - FM

11.34 am - Horticulture sector with a current produce of 311 million metric tonnes exceeds the production of foodgrains, says FM.

11.28 am - FM pledges to provide 20 lakh farmers stand alone solar pumps.

11.26 am - FM Sitharaman says that the government is committed to doubling farmers' income by 2022.

11.24 am - Efforts we have made in the last five years and the enthusiasm and energy of our youth are the ignition of our growth - FM

11.22 am - Central government's debt has come down to 48.7% in March 2019 from 52.2% in March 2014.

11.21 am - Introducing a new simplified GST return filing system from April 1, 2020, says Finance Minister Nirmala Sitharaman

11.18 am - PM helped push the implementation of development manifolds. Rs 1 lakh crore has been extended to consumers as part of incentives. Average household saves one forth of its monthly budget because of GST, says Sitharaman.

11.14 am - This budget is to boost income and enhance purchasing power - Sitharaman

11.13 am - Our people should be gainfully employed, our businesses should be healthy; for all minorities, women and people from SCs and STs, this Budget aims to fulfil their aspirations - FM

11.10 am - Inflation has been well contained

11.09 am - This budget is to boost income and enhance purchasing power - Sitharaman

Earlier report

Daijiworld Media Network – New Delhi

New Delhi, Feb 1: Finance minister Nirmala Sitharaman is set to deliver her budget speech on Saturday, February 1, seeking to give a boost to the economy while keeping fiscal risks under control.

Sitharaman will likely outline measures to spur spending in rural areas and lower tax burden for individuals, home buyers and equity market investors.

Her budget speech is scheduled to start at 11 amin New Delhi.