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Union Budget 2020 highlights| All tax exemptions will be removed gradually: Nirmala Sitharaman

Budget 2020 live updates: The finance minister has slashed personal income tax rates in new I-T regime. Those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as income tax as against the prevailing 20%. Follow live updates here

By HT Correspondent | Feb 01, 2020 20:25 IST

Union finance minister Nirmala Sitharaman presented the annual Budget 2020 in the Parliament on Saturday. She said that the budget was focused on three themes — aspirational India, economic development for all and caring society.

The reduction in income tax rates remained the highlight of Sitharaman’s budget speech. In the new I-T regime, those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as personal income tax as against the prevailing 20%. Among other key measures the government said it would spend Rs 99,300 crore on skill development. She also announced reduction corporate taxes and vowed to make India a preferred investment destination.

Follow live updates from the Union Budget 2020 here:

8:17 PM IST

WATCH| Modi Government’s Union Budget decoded

WATCH| Hindustan Times’ top editors decode Union Budget 2020

7:37 PM IST

‘Shocked and appalled to see Centre’s plans to ambush heritage and legacy of public institutions’: West Bengal CM

Questioning the Centre if they are ‘ending an era’ with the proposed divestment of the LIC, Mamata Banerjee tweeted her dismay with the union budget 2020 presented by Nirmala Sitharaman.

7:41 PM IST

Karnataka CM hails decade’s first Union budget

BS Yeddiyurappa hailed the Budget as ‘pro-people, pro-farmer and pro-poor’. He further added, “Providing Rs 2.83 lakh crore to agriculture sector is a major deviation from the routine budgetary allocations. Kisan Rail and Kisan Udan will facilitate speedy transportation and export of perishable agriculture products and this in turn will boost farmers’ income.”

5:40 PM IST

‘Do not want to give false impression regarding GDP growth’: Nirmala Sitharaman

Finance Minister said that during her speech she was realistic regarding growth projections concerning GDP and fiscal deficit and nominal growth of GDP.

5:37 PM IST

Watch Finance Minister Nirmala Sitharaman’s interview

Catch Finance Minister post-budget interview with the media here.

5:32 PM IST

‘Cost of reduced taxes will be high’: FM

‘Under new scheme, we have reduced taxes but we plan to do away with exemptions entirely’: Sitharaman

5: 30 PM IST

‘A person who is hollow himself, will find everything hollow’: Dharmendra Pradhan

The union minister advised Rahul Gandhi to spend more time in the country in order to contribute to the country as opposition.

5:29 PM IST

‘NRGS is demand-driven scheme and if more money is needed we will allot’: FM

National Rural Generation Scheme is demand driven said Nirmala Sitharaman and said that MGNREGA will be used for increasing fodder stocks.

5:27 PM IST

‘Investment in rural sector has been boosted to aid women empowerment’: FM

FM said that at taluk level NABARD will help SHGs to generate loan disbursement and employment.

5:17 PM IST

‘Public investment will be boosted’: FM

People have said that I have sold the family silver when disinvestments have been talked about, that will not happen, money will go into capex and the money will go into public sectors, said Nirmala Sitharaman.

5:14 PM IST

‘Increasing employment and doubling farmers’ incomes has been our prerogative’: PM

Highlighting the 16 action points for rural areas PM said that an integrated approach has been taken to aid agrarian development.

5:08 PM IST

‘Adivasi and Dalit children will be benefitted from the budget as education sector saw major boost ‘: PM

PM said that new recruitment scheme will aid youth who earlier had to travel miles for employment.

5:05 PM IST

‘Our aim is to boost growth for startup and MSMEs’: PM

PM said MSMEs and startups have been given a boost in the budget. He said that dividend tax has been slashed to ease constraints on the companies.

4:50 PM IST

‘No assurance targets set for 2020-21 will be met’: Chidambaram

The Congress leader said, ‘The finance minister failed to meet any of the key Budget Estimate targets — nominal GDP growth,fiscal deficit,net tax revenue collection, disinvestment revenue or total expenditure.’

4:36 PM IST

‘Market will become stronger after getting through the fine prints of budget’: Piyush Goyal

The Union minister on the Sensex tumbling said that markets have dipped because there is no clarity yet on exemptions, (stocks of) some banks & insurance companies.

4:21 PM IST

‘Money is no substitute for freedom’: Chidambaram

Chidambaram says that money allocated for Jammu and Kashmir will not bear any fruits until there is no basic human rights for the people.

4:17 PM IST

‘1 and 0 are numbers present in 10, pick any’: Chidambaram

Chidambaram when asked to rate the Union Budget 2020 on a scale of 1-10.

4:16 PM IST

Defence pension budget allotment sees an increase to Rs 1.33 lakh crore from Rs 1.17 lakh crore: ANI

Defence pension budget sees a rise. Modernisation and purchase of new weapon systems gets an allotment of Rs 1,10,734 crore.

4:16 PM IST

‘Where are the firms? I hear firms are closing down’: P Chidambaram

The former finance minister said that mining, manufacturing and construction are main boosters for growth and maintained that the Union Budget 2020 didn’t focus on that.

4:11 PM IST

Approach towards the budget was not sector based: FM

Sitharaman said, the approach was not directed towards sector wise development but it was more or less directed towards generating revenue and infusing capital, while answering a query towards dwindling automobile sector.

4:00 PM IST

‘Rural development has large chunk this year’: Govt

Additional demands for rural developments will be met. Officials highlighted that for MGNREGA funds will be increased if there is demand.

The government has slashed funds for India’s flagship rural job guarantee programme by Rs 9500 crore when rural economy has feeling the heat over stagnant wages and high food inflation.

3:52 PM IST

‘Have not said that no money will be given for recapitalisation’: FM

Speaking of bank mergers, Nirmala Sitharaman said that banks will be given money if they need even though no amounts have been specified.

3:50 PM IST

‘Direct tax has been simplified, penalties levied has been reduced’: FM

The revenue secretary further add that if taxes are paid pre-31st March, 2020, no penalties will be levied.

3:45 PM IST

‘Had to go on spending, without violating the FRBM’: Nirmala Sitharaman

Sitharaman said that public spending and revenue generation had to balanced. Corporate spending, public spending had to be boosted. GST spending and disinvestment will allow me to hopefully reduce the deficit from 3.8% to 3.5% and achieve the intended fiscal deficit.

3:36 PM IST

‘Tax charter is a major step, we respect taxpayers because they are building the nation’: Finance Minister

‘To ensure that taxpayers are approached like wealth creators, tax charter is created. Our commitment makes sure that taxpayer is respected. We want to make sure that taxpayer is not harassed’: Sitharaman on post-Budget press conference.

3:34 PM IST

‘You decide where you want to save’: Sitharaman

Sitharaman said that Centre does not want to direct the route of money, and allow people to have more economic freedom.

3:33 PM IST

‘Dividend tax are reduced for companies’: FM

Nirmala Sitharaman said that companies are reduced from paying dividend taxes.

3:31 PM IST

‘Our imperative was to simplify taxes’: Nirmala Sitharaman

Nirmala Sitharaman, finance minister, in her press conference after presenting the Union Budget, said the whole idea was to lower the tax rate.

2:30 pm IST

All talk, nothing happening: Rahul Gandhi criticises govt over budget

Union finance minister Nirmala Sitharaman’s Budget was “repetitive, rambling and hollow”, Congress leader Rahul Gandhi on Saturday said as he hit out at the government for not addressing issues facing the sagging economy.

2:22 pm IST

Delhi is not BJP’s priority, the budget shows: CM Kejriwal

 

2:02 pm IST

No strategic idea to deal with unemployment: Rahul Gandhi

“The main issue facing is unemployment. I didn’t see any strategic idea that would help our youth get jobs. I saw tactical stuff but no central idea. It describes govt well, lot of repetition,rambling-it is mindset of govt, all talk, but nothing happening,” Congress leader Rahul Gandhi said after finance minister Nirmala Sitharaman presented Budget 2020 in the Parliament.

1:45 pm IST

Dividend Distribution Tax shifted to individuals instead of companies: FM

Dividend Distribution Tax shifted to individuals instead of companies.100% tax concession to sovereign wealth funds on investment in infra projects.Tax on Cooperative societies to be reduced to 22 per cent plus surcharge and cess,as against 30 per cent at present.

1:40 pm IST

Aadhaar-based verification of taxpayers introduced: FM

Aadhaar-based verification of taxpayers is being introduced, finance minister Nirmala Sitharaman told the Parliament.

1:36 pm IST

Turnover threshold for audit of MSMEs to be increased to Rs 5 cr: FM

The turnover threshold for audit of MSMEs to be increased from Rs 1 crore to Rs 5 crore, to those businesses which carry out less than 5% of their business in cash, the FM said.

1:34 pm IST

Nirmala Sitharaman’s boost to startups

To boost startups, tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest, Nirmala Sitharaman said in her budget speech.

1:33 pm IST

Dividend Distribution Tax to be shifted: FM

Finance minister Nirmala Sitharaman announced that the Dividend Distribution Tax will be removed, companies will not be required to pay DDT and the dividend will be taxed only at the hands of recipients, at applicable rates.

1:25 pm IST

Sensex tanks 450 points

After the finance minister announced tax slabs in Budget 2020, Sensex tanked 452.14 points to 40,271.35 in afternoon trade, while Nifty slumped 111.70 points to 11,850.40.

1:05 pm IST

Income tax rate for those earning Rs 5- 7.5 lakh reduced to 10%: FM

The finance minister slashed personal income tax rates in new I-T regime. Those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as income tax as against the prevailing 20%.

“Those earning between Rs 7.5 lakh and Rs 10 lakh will pay an income tax of 15%. For income between Rs 10 to Rs 12.5 lakh, the new tax rate is 20 % and for income between Rs 12.5 lakh and Rs15 lakh, the revised tax rate will be 25 per cent,” said the Finance Minister.

Tax rate of 30% on income above Rs 15 lakh will be continued, she said.

Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates, she added.



1:02 pm IST

Nominal GDP growth for 2020-21 estimated at 10%, says FM

Finance Minister Nirmala Sitharaman on Saturday said nominal GDP growth for 2020-21 is estimated at 10 per cent.

Presenting the Budget for 2020-21, Sitharaman said receipts for 2020-21 are pegged at Rs 22.46 lakh crore while expenditure at Rs 30.42 lakh crore. The revised estimated expenditure for FY20 has been pegged at Rs 26.99 lakh crore and receipts at Rs 19.32 lakh crore, she said.

1:00 pm IST

Govt proposes to sell part of its LIC holding

The government has proposed to sell a part of its holding in LIC by initial public offer.

12:58 pm IST

Robust mechanism in place to monitor health of commercial banks, depositors’ money: FM

Robust mechanism is in place to monitor health of all schedule commercial banks and depositors money is absolutely safe: Finance Minister Nirmala Sitharaman:

12:54 pm IST

Govt has asked RBI to extend debt restructuring window for MSME: FM

Govt has asked RBI to extend debt restructuring window for MSME by a year to March 31, 2021.

12:42 pm IST

Deposit insurance coverage increased from Rs1 lakh to Rs 5 lakh: FM

Finance Minister Nirmala Sitharaman announced the government’s decision to raise the Rs 1-lakh insurance cover limit to Rs 5 lakh for greater protection of depositors’ money in banks.

12:36 pm IST

Govt allocates Rs 4,400 crore to ensure clean air

“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 crores,” finance minister Nirmala Sitharaman said ion her budget speech.

12:34 am IST

Tax harassment cannot be tolerated: Nirmala Sitharaman

“Tax harassment cannot be tolerated,” says FM Nirmala Sitharaman.

A taxpayer charter will be part of the budget. Freedom from harassment, amendments in Companies Act and other laws to ensure some civil offences aren’t treated as criminal ones, she said in her budget speech.

12:30 pm IST

Wealth creaters will be respected in the country: FM

The wealth creaters will be respected in the country, the finance minister said in her budget speech in the Parliament.

12:27 pm IST

Rs 85,000 crore allocation for SC and OBCs in 2020-21

The government has allocated Rs 85,000 crore for Scheduled Castes and Other Backward Classes in 2020-21 budget. Rs 53,700 crore rupees have also allocated for Scheduled Tribes and enhanced allocation of 9,500 crore rupees for Senior citizens and Divyangs.

12:23 pm IST

Growth of tourism industry directly related to employment

Proposing Rs 2,500 crore for the tourism industry, finance minister Nirmala Sitharaman said that the growth of the tourism industry is directly related to employment.

12:21 pm IST

FM proposes National Technical Textile Mission at Rs 1,480-cr outlay

Finance Minister Nirmala Sitharaman on Saturday proposed National Technical Textile Mission with an outlay of Rs 1,480 crore over four years to cut down imports.

Presenting the Budget for 2020-21, Sitharaman said as much as Rs 27,300 crore has been provided for development and promotion of industry and commerce.

12:18 pm IST

Beti Bachao, Beti Padhao has yielded tremendous results: FM

The finance minister told the Parliament that the government’s Beti Bachao, Beti Padhao initiative has yielded tremendous results.

12:14 pm IST

Sitharaman’s big push for digital connectivity

In her Budget 2020 speech, Nirmala Sitharaman announced a big push digital connectivity saying data centre parks across the country will be encouraged

“All public institutions at the gram panchayat level will all be given digital connectivity and Fiber to home will link 1 lakh gram panchayats,” she said.

12:10 pm IST

New economy based on innovation: Nirmala Sitharaman

While presenting budget 2020, finance minister Nirmala Sitharaman said that the India’s new economy is based on innovation.

“The government will achieve seamless delivery of services through digital governance,” she said.

12:01 pm IST

India needs to boost domestic manufacturing: Nirmala Sitharaman

Finance minister Nirmala Sitharaman, in her budget 2020 speech emphasised that India needs to boost domestic manufacturing.

A scheme focussed on encouraging manufacture of mobile phones, electronic equipment and semiconductor packaging will be introduced, she said.

The vision of the government is to make each district an export hub, Sitharaman said.

The government aims to facilitate clearances even at the state level and also set up investment clearance cell to give investors free investment advisory, she added.



11:50 am IST

Entrepreneurship is the strength of India: Nirmala Sitharaman

Entrepreneurship is the strength of India as it an entrepreneur creates jobs in the country, said FM Nirmala Sitharaman. “India’s industry commerce and trade has a deep past, and entrepreneurship has always been a strength of India,” she said.

She also said that India needs to boost domestic manufacturing.

11:46 am IST

FM on quality education

Emphasising on budget’s focus on quality education in the country, Sitharaman announced “degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework.”

“More medical colleges will be built at district levels so as to train and produce more doctors in the country with a special training package,” she said in the Parliament.

Nirmala Sitharaman said the in the current year fiscal government will spend Rs 99,300 crore on skill development, adding that the urban local bodies across the country shall provide internships for young engineers for a period of up to one year.

11:44 am IST

‘One product for one district’: FM on better marketing and export

“For better marketing and export, supporting states will focus on one product for one district, so that high focus is given at district level for horticulture to gain momentum,” finance minister Nirmala Sitharaman said in her 2020 budget speech.

11:38 am IST

Nirmala Sitharaman on cold supply chain for perishables

In her budget speech, FM Nirmala Sitharaman has said that the Indian Railways will set up Kisan Rail through PPP model to build a seamless national cold supply chain for perishables and for their quick transportation.

“Krishi Udaan will be launched by MoCA on international and national routes,” she said.

11:33 am IST

‘Farm markets need to be liberalized’: Nirmala Sitharaman

“Farm markets need to be liberalized, farming need to be made more competitive, handholding of farm-based activities need to be provided, sustainable cropping patterns and more tech needed,” finance minister Nirmala Sitharaman said in her budget speech emphasising on agricultural reforms.

“Farmers who have fallow or barren land will be helped to set up solar power generation units and also sell surplus power to the solar grid and also make living out of even barren land,” she said detailing the measures for the farming sector.

11:30 am IST

‘Adopt three model laws’: FM’s action point for agriculture

In her Budget 2020 speech, the finance minister encouraged the states to adopt three model laws, one on land leading, another amending APMC, and third allowing contract farming.

11:20 am IST

‘GST most historic reform’: FM pays homage to Arun Jaitley

Finance Minister Nirmala Sitharaman presented her second Budget in Parliament on Saturday, where she presented the Modi government report card and presented the future of the economy for the coming year.

Our first tenure (from 2014 to 19) brought a paradigm shift, added Sitharaman, and hailed the implementation of Goods and Services Tax (GST). She also paid homage to former finance minister Arun Jaitley, who passed away in August last year. “GST has been historic, I pay homage to visionary leader Arun Jaitley who launched it,” said Sitharaman.

11:21 am IST

Government’s debt has come down to 48.7%: FM

“Central government’s debt has come down to 48.7% in March 2019 from 52.2% in March 2014,” finance minister Nirmala Sitharaman told the Parliament.

11:18 am IST

Aspirational India and economic development focus of Bugdet: FM

Nirmala Sitharaman said the three threads on which the Budget is woven are “aspirational India, economic development for all and caring society. ”

11:15 am IST

Tried to bring ease of living for all: FM

The finance minister explained that Budget 2020 aims to boost the income and purchasing power of people.

11:13 am IST

GST has resulted in efficiency gains in transport, logistics sector: FM

Finance minister Nirmala Sitharaman hailed the Goods and Services Tax in her Budget 20202 speech. “GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted MSME. Consumers have got an annual benefit of Rs one lakh crore by GST” she said.

11:04 am IST

Hoping for a dynamic and vibrant economy: FM

In her budget speech at the Parliament, finance minister Nirmala Sitharaman said Budget 2020 aims for India to become a dynamic and vibrant economy. With an emphasis on making businesses innovative, she said that the budget is aimed at bringing a budget that fulfils the aspirations of all sections of the society.

“Working for a common goal of shared prosperity,” she said.

11:02 am IST

Finance minister Nirmala Sitharaman presents Budget 2020

Finance minister Nirmala Sitharaman on Saturday began her Budget 2020 speech in Lok Sabha.

11:00 am IST

Real estate sector should become an industry: Amit Gossain

“Real estate sector should become an industry& I think they will do something about it. Real Estate is still struggling. There are liquidity crisis. It should be taken care of. Once real estate picks up it is good for employment too,” Amit Gossain, MD, Kone Elevators ahead of Budget 2020, according to news agency ANI.

10:52 am IST

Union Cabinet approves Sitharaman’s Budget 2020

The Union Cabinet on Saturday approved finance minister Nirmala Sitharam’s budget for the year 2020-21. She will present the budget in Lok Sabha at 11 am.

10:50 am IST

Effort has been to bring the best: Anurag Thakur

Ahead of budget presentation, Union minister Anurag Thakur offered prayers at his residence and said the government has attempted to bring the best for the people and for the country.

“The Modi government believes in ‘sabka sath, sabka vikas.’ We received suggestions from across the country. The government has made efforts to ensure that this Budget will be good for all, good for the people and the country,” Thakur told ANI.

10:40 am IST

Budget 2020 presentation shortly

In about 20 min from now, finance minister Nirmala Sitharaman will present her second budget in the Parliament.

10:38 am IST

Sitharaman’s family in Parliament

Finance Minister Nirmala Sitharaman’s family members including her daughter Parakala Vangmayi arrived in Parliament ahead of her Budget presentation at 11 am.

10:33 am IST

Copies of Budget 2020 brought to Parliament

Ahead of budget 2020 presentation by Nirmala Sitharaman at 11 am, copies of the document were brought to the Parliament.

10:26 am IST

PM Modi, HM Amit Shah in Parliament

Prime Minister Narendra Modi and home minister Amit Shah arrived at the Parliament ahead of Nirmala Sitharaman’s budget presentation at 11am.

10:18 am IST

Budget will show how much BJP cares for Delhi: Kejriwal

“The people of Delhi are hopeful that the Union Government will protect the interests of Delhi in the budget. Delhi should get more in view of elections. The budget will show how much BJP cares for us Delhiites,” Delhi CM Arvind Kejriwal tweeted on Saturday ahead of the Budget 2020 presentation the Parliament.

10:10 am IST

Union ministers arrive at Parliament

The Union cabinet is set to meet at 10:15 am before the budget. Union ministers including Nirmala Sitharaman, Prakash Javadekar, Jitendra Singh and Anurag Thakur were seen reaching the Parliament premises.

10:00 am IST

An hour to go

Nirmala Sitharaman will present the annual budget for 2020-21 fiscal year at 11 am today. In an hour from now, India will know the government’s road map to get closer to the $5 trillion economy goal by 2025.

10:58 am IST

Rajiv Gauba arrives at the Parliament

In an hour from now, finance minister Nirmala Sitharaman will present the budget in the Parliament. For a cabinet meeting scheduled before the presentation, Union cabinet secretary Rajiv Gauba arrived at the Parliament.

Union cabinet secretary Rajiv Gauba arrives at the Parliament ( ANI Photo )

9:55 am IST

Never seen this bad a liquidity crisis: N Hiranandani

Ahead of finance minister’s budget presentation, N Hiranandani,the CMD of Hiranandani Group said that he had never seen a liquidity crisis as bad as this day’s and also highlighted the need for push to the oil mechanism for economic recovery. “I’ve never seen a liquidity crisis as bad as it is today. No matter how good the budget is if the oil in the mechanism of the economy is not working, the economy can’t move.If the oil comes back&we get boost of budget then we will see recovery,” Hiranandani told news agency ANI.

9:50 am IST

Sitharaman calls on President

Before heading to the Parliament for a cabinet meeting ahead of Budget presentation, finance minister Nirmala Sitharaman, accompanied by minister of state for finance & corporate affairs Anurag Thakur, called on President Ram Nath Kovind.

9:40 am IST

Congress expects tax cuts for salaried class in Budget 2020

Ahead of Nirmala Sitharaman’s budget presentation at 11 am, Congress spokesperson Randeep Surjewala on Saturday tweeted, “Let #Budget2020 give tax cuts to Salaried Class & invest in Rural India.”

9:30 am IST

Growth projected at 6%-6.5%

The government released the Economic Survey on Friday that projected the India’s growth rate at 6%-6.5% for 2020-21 fiscal year.

9:25 am IST

Sensex plunges over 250 points

Ahead of finance minister Nirmala Sitharaman’s Union budget speech at 11 am, in early trade Sensex plunged 279.01 points to 40,444. while Nifty dropped 81.45 points to 11,880.65.

9:15 am IST

Tax cuts, sops to spur growth expected in Sitharaman’s 2nd budget

Finance minister Nirmala Sitharaman’s second budget is likely to bring cuts in personal income tax and sops, especially for rural and agriculture sectors, in order to give a push to the sliding Indian economy.

9:10 am IST

With ‘bahi khata’ 2.0, Nirmala Sitharaman at finance ministry

For those waiting to see if finance minister Nirmala Sitharaman will carry a bahi-khata or brief case this budget, the wait is over. Sitharaman was seen carrying a ‘bahi khata’ in her hand as she reached the finance ministry ahead of presenting Budget 2020 in Parliament. For a second time, Sitharaman again opted for a bahi khata, a ledger wrapped in a red-coloured cloth

9:05 am IST

Budget 2020 at 11 am

Finance minister Nirmala Sitharaman will the present the Union Budget 2020 at 11 am Saturday. The budget shall aim to achieve the government’s target of making India a $5 trillion dollar economy by 2025.

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