Budget 2020: From optional tax to infra boost, here are key takeaways
Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget 2020 at a time when several challenges -- ranging from unemployment to demand slowdown -- derailed India's economic growth.
Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget 2020 at a time when several challenges -- ranging from unemployment to demand slowdown -- derailed India's economic growth.
From slashing tax under an optional new regime to boosting infrastructure spending, the government tried addressing most of the issues dwindling growth. However, in an attempt to accommodate multiple themes, the budget missed out on the most important expectation ie; boosting demand.
The government has already received flak from opposition leaders including P Chidambaram, who said the government has "given up" on reviving the economy.
Having said that, here is a detailed synopsis of all the key decisions announced in Budget 2020-21:
OPTIONAL PERSONAL INCOME TAX
Though some have welcomed that lower personal income tax rates, the fact that it will come without a bulk of the familiar exemptions including standard deduction has left the common man confused. Under the new income tax structure, those earning income of over Rs 5 to 7.5 lakh will attract a 10 per cent rate; those earning over Rs 7.5 lakh to Rs 10 lakh will pay 15 per cent tax. People earning over Rs 10 lakh to Rs 12.5 lakh will pay 20 per cent tax while individuals earning over Rs 12.5 lakh to Rs 15 lakh will pay Rs 25 per cent as tax.
The 30 per cent tax bracket remains same for those earning over Rs 15 lakh. While this is a good way to shore up consumer demand, the fact that the new taxation system omits key exemptions and deductions may emerge as a major concern for the common man.
