Budget 2020 LIVE / Nirmala Sitharaman announces big income tax relief

NEW DELHI : Amid expectations that the Narendra Modi government will bring the Indian economy out of a slump by boosting growth, finance minister Nirmala Sitharaman tabled the Union Budget 2020-21 in the Lok Sabha today. While the common man is expecting income tax rate cut, the industry is pinning hopes on bold initiatives to revive economic growth.

Nirmala Sitharaman's Budget Speech Live Updates:

FM halves customs duty on import of newsprint, light weight coated paper to 5 per cent

Sudhakar Sethuraman, Partner, Deloitte India, said it is an overall an interesting budget aimed at enhancing governance, streamlining tax rates and minimising administration.

“The abolishing of Dividend Distribution Tax in the hands of the company and substituting it with tax in the hands of the shareholders is a welcome move. It definitely will promote foreign investment since the foreign investors would get credit for the tax paid in their home countries. Small tax payers would also benefit as their effective rate of tax is much lower. Impact on taxation of large domestic institutional investors and large retail investors may be negative, as dividend is expected to be taxable at the maximum slab rate in their hands," Ashok Shah, Partner, NA Shah Associates.

Budget has provided an outlay of ₹8,000 crore for quantum computing over five years to break into this technology.

Customs duty increased on footwear and furniture: FM

Sitharaman breaks Budget speech time record but ends midway after feeling unwell

Lok Sabha adjourned after Sitharaman ends speech

Direct taxes are lowest, simplest and smoothest: Sitharaman

FM proposes scheme to bring down litigation in direct taxation scheme; 4.83 lakh direct cases pending in various appellate forums.

'Vivad se Vishwas' scheme for direct tax payers whose appeals are pending at various forum: FM

Registration of charity institutions to be made completely electronic, donations made to be pre-filled in IT return form to claim exemptions for donations easily: Sitharaman.

15th Finance Commission reduces state share of central taxes by one percentage point to 41%

PAN cards will be allotted instantly online soon with Aadhaar: Sitharaman.

Tax on Cooperative societies proposed to be reduced to 22 per cent plus surcharge and cess, as against 30 per cent at present: FM

Income Tax Act to be amended to enable faceless appeal

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

Income tax rates will not change for those earning above ₹15 lakh and they will continue paying 30%.

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

Govt proposes 100% tax concession to sovereign wealth funds on investment in infrastructure projects: FM

Concessional tax rate of 15% extended to power generation companies.

DDT (dividend distribution tax) to be removed. Dividend shall be taxed at the hands of the recipients: FM.

New income tax rates will be optional: FM Sitharaman

Income tax rates will be significantly reduced for those who forego reliefs, exemptions

₹48,000 crore revenue loss due to income tax relief: FM

New income tax slab for FY 2020-21: ₹5-7.5 lakh: 10%, ₹7.5 lakh to ₹10 lakh: 15%, ₹10 lakh-12.5 lakh: 20%, ₹12.5 lakh-15 lakh: 25%. For those earning above ₹15 lakh, 30%.

Those earning ₹5 lakh will not pay any tax: FM

For those earning ₹5 to ₹7.5 lakh, income tax has been reduced to 10% from 20%.

New simplified personal income tax regime to lower income tax: FM

Income tax reforms to promote growth: FM

The collection of taxes go back to the people manifold: FM

"The move to increase the deposit insurance from Rs. 1 lakh to Rs. 5 lakh by the RBI subsidiary Deposit Insurance and Credit Guarantee Corporation (DICGC) is great news for the common man. It was a necessary step to boost depositor sentiment following some bank runs. The increase in deposit insurance was overdue. This will certainly give a sense of security to depositors, especially senior citizens, who rely on their deposit interest for regular income needs in their golden years," Adhil Shetty, CEO, BankBazaar.com, said.

Govt accepts recommendations of interim report of 15th Finance Commission, final report to be submitted later: FM

International bullion exchange to be set up in IF SC GIFT City, says FM

Fiscal deficit has been estimated to be 3.8% in 2019-20 and 3.5% for the next year 2020-21.

Expected tax buoyancy will take time: FM

Receipts: ₹22.46 lakh crore. Expenditure: ₹30.42 lakh crore

Nominal growth of GDP for 2020-21 has been estimated at 10%: Sitharaman.

National infrastructure project pipeline: ₹22,000 crore already provided as support

Certain govt securities will be open for foreign investors: FM

Investment limit of FPIs in corporate bonds will be increased from 9% to 15%

Government will sell part of its stake in LIC through IPO: Sitharaman

Scheme to provide subordinate debt for entrepreneurs of MSMEs to be introduced, says FM.

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

Sitharaman stresses on the need for greater private capital in banks.

Government pension trust will be separated from PFRDA: FM

Balance govt holding in IDBI banks to be sold to pvt retail investors: FM

Deposit Insurance and Credit Guarantee Corporation has been permitted to increase deposit insurance coverage to ₹5 lakh per depositor from ₹1 lakh.

“An important aspect of ease of living and ease of doing business is fairness. Businesses should have the confidence that things are fair and that the tax administration is efficient. We wish to enshrine a tax payers’ charter in the statute. Our government would like to reassure tax payers that they will not be harassed. Tax harassment cannot be tolerated when we speak about wealth creation," said Sitharaman.

Govt proposes ₹30,757 crore for Jammu and Kashmir, and ₹5,958 for Ladakh for fiscal 2020-21

Sitharaman proposes major reform in recruitment of non-gazetted staff.

Data must have credibility, National Policy on statistics to be brought in, says FM

Insurance cover for bank depositors to be hiked to ₹5 lakh: FM

Depositors' money is absolutely safe: Sitharaman assures House saying that measures are in place to keep a check on all commercial banks.

"Our vision is that all public institutions at the gram panchayat level such as anganwadis, health and wellness centres, government schools, PDS outlets, post offices and police stations -- all will be provided digital connectivity. The fibre to the home (FTTH) connection through BharatNet will link 100,000 gram panchayats this year itself," she said.

Govt proposes amendments in Companies Act to decriminalise civil offences: FM

Tax payer charter will be part of statute, says FM.

India's commitment towards tackling climate change made in Paris conference kick starts from January 1, 2021: Sitharaman

India will host G20 Summit this year for which ₹100 crore has been allocated: Sitharaman

Wealth creators will be respected in the country: FM

Tax harassment cannot be tolerated: FM

Sitharaman proposes ₹4,400 crore solution to Delhi's air pollution problem.

National security is the top priority of this government: Sitharaman.

Foreign direct investment (FDI) into the country has increased to $284 billion during 2014-19 from $190 billion in previous five years.

Sitharaman wants to turn every district into an export hub: FM

Nirvik (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce premium for small exporters

₹85,000 crore allocated for SCs and OBCs in Budget: Sitharaman.

1,150 trains will run under the public private partnership (PPP) mode, also four stations will be redeveloped with the help of the private sector: FM

Allocation of ₹9,500 crores for senior citizens and 'Divyang' to be enhanced: FM.

The government will also provide 20% equity for Bengaluru suburban transportation project, which is worth ₹18,600 crore. At least one major port could be listed on the stock exchanges, the finance minister said.

To improve airways connectivity, 100 more airports will be built by 2024

Nirmala Sitharaman proposed to launch a new scheme to make India a hub for electronic manufacturing in line with the “Assemble In India" proposed by the Economic Survey on Friday. “India needs to manufacture networked products which will make India part of the global chain. Electronics industry’s potential in manufacture and job creation is immense. We need to encourage manufacturing of mobile phones, electronic equipment and semiconductor. Details will be announced," Sitharaman said in her Budget speech.

₹35,600 crore for nutrition-related programmes in 2020-21: Sitharaman

Ranchi to get a tribal museum.

5 archaeological sites will be developed as iconic sites with on-site museum: Sitharaman.

Budget allocates ₹85,000 crore for backward class.

National Gas Grid to be expanded from 16,200 km to 27,000 km; reforms to be introduced to deepen gas markets, enable ease of transactions and transparent price recovery.

There shall be no manual cleaning of sewers. Suitable technology identified: FM

"I urge all states and UTs to replace conventional energy meters by pre-paid smart meters in 3 years, this will give consumers the freedom to choose supplier and rate as per their requirements," Sitharaman said.

₹22,000 crore to be provided to power and renewable energy sector in 2020-21: Budget

Further reforms for transparent price discovery for natural gas will be undertaken: FM

₹1.7 lakh crore provided for transport infrastructure in 2020-21.

₹6000 crore allotted to Bharat Net programme: FM Sitharaman

Beti Bachao, Beti Padhao has yielded tremendous results: FM

Finance Minister Nirmala Sitharaman: High-speed train between Mumbai and Ahmedabad will be actively pursued.

National Logistics Policy will soon be released, creating single window e-logistics market: FM

Steps will be be taken to attract external commercial borrowing and FDI in the education sector: FM

Budget allocates ₹27,300 crore for development of industry and commerce.

Indian Railways will set up Kisan Rail through PPP model so that perishable goods can be transported quickly

Digital refund of duties and taxes of Centre, states and local bodies to exporters from this year: Sitharaman

550 wi-fi facilities have been commissioned at railway stations, says FM

National Technical Textiles Mission to be introduced, with a four-year implementation period, with an outlay of ₹1,480 crore: FM

Scheme for manufacturing of cell phones, semi conductors and other lectronic devices will be announced soon: FM

More Tejas-type trains will connect tourist stations: FM

Delhi-Mumbai expressway will be completed by 2023

FM proposes to expand Jan Aushadhi Kendras in all districts to provide medicines at affordable rates.

₹3.6 lakh crore allocated for Jal Jeevan Mission.

Budget 2020 provides an additional ₹69,000 crore for the health sector: FM

All infrastructure agencies of the govt to empower youth power: FM

Tuberculosis (TB) will be eliminated in India by 2025: Sitharaman

Degree level full-fledged online education programme by institutions ranked in top 100: FM

A national Textiles Technical Mission to be set up

Govt will encourage manufacturing of mobile phones.

National Police University and National Forensic University will be set up.

Budget proposes the setting up of 5 new smart cities on PPP mode

I propose to set up an investment clearance cell: Sitharaman

Entrepreneurship has always been the strength of India: FM

The government will promote one horticulture crop in one district on cluster basis, she said, adding that horticulture with 311 MT exceeded production of food grains.

Budget allocates ₹99,300 crore for education in 2020-21.

Budget proposes to start Ind-Sat Exam to promote study in India.

A degree level full fledged online education programme to deprived, who cannot afford education: FM

Share markets were cautious during Budget presentation. Top gainers in the Sensex pack included Maruti, HUL, Bajaj Finance, UltraTech Cement, TCS, Asian Paints and Bajaj Auto.

Proceeds from taxes on medical devices would be used to support setting up of hospitals, says FM

NABARD Refinancing Scheme to be further expanded, agri credit target for the year 2020-21 has been set at 15 lakh crore rupees

By 2030, India is set to have the largest working population in the world: Sitharaman

The new education policy will be announced soon: Sitharaman

Milk processing capacity to be doubled by 2025: Sitharaman

The total allocation for Swachch Bharat 12,300 crores for 20-21

The total allocation for Swachch Bharat 12,300 crores for 2020-21: FM

Govt allocated ₹1.23 lakh for rural development and panchayati raj, and ₹1.6 lakh crore for agriculture and allied activities: FM

Government committed to ODF plus in order to sustain ODF (open-defecation free) behaviour: FM

Setting up hospitals in PPP mode. From 112 of aspirational districts those don't have Ayushman will be given priority: FM

Comprehensive measures for 100 water-stressed districts being proposed in Budget 2020; Agricultural credit target has been set at ₹15 lakh crore: FM

Indian Railways will set up Kisan Rail through PPP arrangement, for transportation of perishable goods: FM

Krishi Udaan to be launched by Civil Aviation Ministry to transport agri-products to national as well international destinations: FM

"We will encourage balanced use of all fertilizers, a necessary step to change the incentive regime which encourages excessive use of chemical fertilizers," FM said.

FCI and Warehousing Corporation of India to build warehousing facility on their land, says FM

States asked to adopt 3 central model laws on agri land leasing, marketing and contract farming: FM

Govt proposes plans to help farmers use proper manure and little water, encourage balanced use of fertilizers: FM

Sitharaman is listing out 16 points action plan to double farmers income.

Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM KUSUM) to be expanded to provide 20 lakh farmers in setting up standalone solar pumps.

Shares of agri-related companies gained after Nirmala Sitharaman said that the government committed to doubling farmers income by 2022. Shares of Mahindra & Mahindra gained 2%, Jain Irrigation 5%, Escirts 1%, Godrej Agrovet 3.5%, Shakti Pumps 7%.

Budget 2020 proposes solar generation on fallow land to boost farm incomes.

Sitharaman said the growth of 7.4% was surpassed in 2014-19 with average inflation of 4.5%.

The government will encourage those state governments who implement model laws passed by the Central government: FM

Over 6 crore farmers under Pradhan Mantri Fasal Bima Yojna have been insured: FM

Everything that we do, speak through budget, everything that govt does is for country, says FM

The aim is to achieve seamless delivery of services through digital governance: FM

India uplifted 271 million people out of poverty: FM

Farm markets need to be liberalised: FM

We are committed to Doubling farmers' income by 2022: FM

FM recites a small verse in Kashmiri during her Budget speech.

Central government's debt has come down to 48.7% in March 2019 from 52.2% in March 2014: FM

The Union Budget is woven around three primary themes -- Aspirational India, Economic development for all and a caring society: Nirmala Sitharaman

Simplified return for GST is being introduced from April 2020: FM

We shall bring back ease of living to every citizens: Sitharaman

We are now the fifth largest economy of the world: FM

During 2014-19, govt brought paradigm shift in governance: FM presenting Budget for 2020-21

Annual household saves 4% income of due to GST: FM

GST did face certain challenges, GST Council has been proactive in solving the issues: Sitharaman.

Dreaded inspector Raj has vanished: Sitharaman

Budget will boost income and purchasing power of people: Sitharaman

GST has been gradually maturing. It has facilitated the formalisation of the economy: FM

"Inflation has been controlled. Companies have been provided an exit route through IBC," the finance minister said.

Fundamentals of our economy is strong, bank saw a thorough clean up of accumulated loans of past decade: FM

"The is the budget to increase the purchasing power of the people. This is the budget to address the aspirations of all sections of people," Sitharaman said in her speech.

Fundamentals of the Indian economy are strong: FM

Let our business be healthy and innovative with the use of technology: Sitharaman.

This budget is for everyone: FM

FM presents Budget 2020-21 in the Lok Sabha.

Sitharaman tables 15th Finance Commission's report in the Lok Sabha.

Sitharaman is expected to pull out all stops to spur consumer demand and investment in the Budget.

Union Cabinet approves Budget for 2020-21

The Budget is also expected to provide relief on LTCG or long term capital gains tax and increase deduction.

Tax experts predict that the Budget may make changes in the income tax rates and slab to give relief to the common man.

Nirmala Sitharaman may loosen fiscal deficit targets, as recommended by Chief Economic Advisor KV Subramanian in the Economic Survey.

The Union Budget is unlikely to have any state-specific schemes as the Election Commission has asked the government to refrain from announcing such schemes before Delhi elections.

Congress chief spokesperson Randeep Surjewala said the last budget led to crashing consumption levels, soaring unemployment and falling GDP.

India's GDP is expected to rebound and grow at a rate of 6 to 6.5% in the next financial year 2020-21, according to the Economic Survey released yesterday.

Nirmala Sitharaman is India's second woman finance minister.

The Modi government could defer the earlier target of cutting fiscal deficit to 3% of GDP in 2020-21 by at least two years, Reuters reported.

Economists in a Reuters poll predicted the government would set a deficit target of 3.6% of GDP for 2020-21, up from 3.3% targeted for the current year.

Dressed in a crisp yellow silk sari, Nirmala Sitharaman came to the Parliament carrying the Budget documents wrapped in a red silk cloth, adorned with the Indian emblem in golden.

Even as the stock markets and commodity exchanges are open today, bank unions are sitting on a two-day bank strike from yesterday on wage-related issues.

Share market traders are cautious ahead of Budget as the Sensex slumped over 200 points in opening trade but rebounded later on. At 10:10 am, Sensex was at 40,775.00, up by 51.51 points or 0.13%, while the NSE Nifty was at 11,969.90, up 7.80 points or 0.07%.

Before Budget presentation, the Union Cabinet will meet in the Parliament.

Nirmala Sitharaman presents her Budget speech at 11 am. Usually, the duration of the presentation ranges from 90 to 120 minutes.

As per tradition, Sitharaman went to meet President Ram Nath Kovind at the Rashtrapati Bhavan before presenting the Union Budget.