Budget 2020 key highlights

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* GST bring synergy in logistics sector (20% time reduction)
* 60 lakhs new taxpayers added via GST introduction 
* New simplified GST returns from April 2020
* FDI elevated during period 2014-2019 to $284bn
* Central government debt reduced to 48.7% of GDP in 2019
* 16 points action plan for agricultural & irrigation sector under aspirational India 
* New Education Policy will be announced soon
* ECB and FDI will open in education sector 
* Degree level full fledged online programs to be started 
* National Police University & Forensic university is proposed to be set up
* INR 99,300 cr proposed for education sector
* Investment clearance cell to be set up to facilitate investments and to provide advisory at State as well as Centre level
* 5 new smart cities to be developed 
* Move to develop each district an export hub
* INR 27,300 cr for promotion of industry & commerce 
* National logistics policy to be released soon
* Digital refund of duties to exporter
* Setting up of solar panels on barren lands
* More Tejas types train to be introduced to connect iconic cities
* 100 more Airports to be developed by 2024
* Proposed to states to replace old electric meters to the smart pre-paid electric meters. This will give flexibility to consumer to choose service provider.
* INR 22,000 cr proposed for power & renewal energy sector
* Private sectors to built data centre parks throughout the country, policy may come soon
* INR 6,000 cr proposed for 'Bharat Net'
* Funding for ideation and start up
* INR 28,600 cr proposed in this budget specific to women 
* Proposed to set up Indian Institute of Heritage & culture as a deemed university 
* 5 Archeological sites would be developed as iconic sites with onsite museums 
* Setting up of Tribal Museum in Ranchi, Jharkhand 
* INR 2,500 cr proposed for development of Tourism sector
* Taxpayer's charter to be a part of statute to build confidence/trust
* Government will ensure that citizens need not worry about tax harassment. There is a debate on building criminal liabilites for civil acts. Companies Act will be amended to correct this
* India to host G20 presidency in 2022; INR 100 cr allocated for preparation 
* Robust mechanism is in place to monitor health of all scheduled banks
* Insurance cover for deposits increased from INR 1 lakh to 5 lakh
* Universal pension coverage with auto enrollment to be introduced (through PFRDI) to every person
* Invoice financing by NBFCs to MSME sector - Amendments to be made in Factoring Act
* Certain amendments to be made in SARFESI Act
* Non residents can invest in certain Government securities 
* Liquidity constraints of NBFCs & HFCs will be addressed - Government has taken steps from last year 
* International Buillion exchange to be setup in GIFT IFSC
* LIC initial public offer will come to list on stock exchange; Government will sell part of its holding

Part-B - Tax Proposals

* Personal income tax - proposed to bring new income-tax regime for individual Taxpayer's
New slab rate (without exemption)
10% - income  5 - 7.5 lakhs 
15% - 7.5 - 10 lakhs 
20% - 10 - 12.5 lakhs 
25% - 12.5 - 15 lakhs
30% - Above 15 lakhs

Income upto 5 lakhs no tax, says FM

* if individual ears income of 15 lakhs then tax would be 1.95 lakh vis-a-vis 2.73 lakhs as earlier

* New scheme of individual tax rates is optional 
* FM says - reviewed all existing income tax exemptions and removed 70 of them in new regime and will review remaining and rationalize 
* Propose to remove DDT and dividend would be taxable in the hands of shareholders; removal of cascading effect of dividend distributed by holding to subsidiary (25k cr revenues forgone on account of DDT abolishion)
* Concessional tax rate for electricity/power generation companies
* 100% tax exemption on new investment by foreign funds in infrastructure sector by 2024 with a minimum lock in period of 3 years
* ESOPs given by startups to employees currently taxed as perquisites; deffering of tax payment by employees to 5 years
* Increase in turnover limit from 25 cr to 100 cr for startups
* Deduction can be claimed by startups upto 10 years 
* Tax audit turnover threshold limit increased from 1 cr to 5 cr
*  Concessional 5% withholding tax has been extended  to municipal bonds. Cooperatives are taxed at 30 percent now. Cooperatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.
* Complete online registration of charitable institutions 
* Faceless appeals on the line of faceless assessment 
* Vivad se Vishwas Scheme introduced - New direct tax dispute settlement scheme
* More than 4.83 lakhs cases pending at various forums
* Taxpayer's need to pay only disputed amount of tax (no penalty be charged) by March 2020; scheme will be available till June 2020 but some additional payment to made in-addition to tax
* CBDT to adopt Taxpayer's charter
* PAN shall be instantly allotted on the basis of Aadhar without any filling up of form
* Personal interface with tax administrators will be at minimum level
* GST reforms will continue including a simplified return-filling form. FM says, refund has been simplified and has been fully The individual or HUF opting for taxation under the newly inserted section115BAC of the Act shall not be entitled to 
the following exemptions/ deductions: 
(i) Leave travel concession as contained in clause (5) of section 10; 
(ii) House rent allowance as contained in clause (13A) of section 10; 
(iii) Some of the allowance as contained in clause (14) of section 10; 
(iv) Allowances to MPs/MLAs as contained in clause (17) of section 10; 
(v) Allowance for income of minor as contained in clause (32) of section 10; 
(vi) Exemption for SEZ unit contained in section 10AA; 
(vii) Standard deduction, deduction for entertainment allowance and employment/professional tax as contained in 
section 16; 
(viii) Interest under section 24 in respect of self-occupied or vacant property referred to in sub-section (2) of section 23. 
(Loss under the head income from house property for rented house shall not be allowed to be set off under any 
other head and would be allowed to be carried forward as per extant law); 
(ix) Additional deprecation under clause (iia) of sub-section (1) of section 32; 
(x) Deductions under section 32AD, 33AB, 33ABA; 
(xi) Various deduction for donation for or expenditure on scientific research contained in sub-clause (ii) or sub-clause 
(iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35; 
(xii) Deduction under section 35AD or section 35CCC; 
(xiii) Deduction from family pension under clause (iia) of section 57; 
(xiv) Any deduction under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc). However, deduction under sub-section(2) of section 80CCD (employer contribution on account of employee in notified pension scheme) and section 80JJAA 

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