InCred

February 05, 2020

It’s that time of year again, when all eyes are trained on the Finance Minister as the Union
Budget is announced. This year’s Budget focuses on a trio of themes that include
Aspirational India, Caring Society and Economic Development. New ‘Make in India’
initiatives are creating anticipation amongst local businesses.

What’s in the Budget for you?

If you want to know more about what’s in the budget on the personal finance front, you’re
in the right place. Let us break it down for you, with the top 5 highlights of Budget 2020
that may impact you as an individual.

1. Heralding a new income tax regimeYou now have the option of continuing with the old income tax regime with
   exceptions, while paying tax at the old rate.

   However, you can choose to opt for the new lower tax regime:

   INCOME (INR LACS)	TAX STRUCTURE
   Between 5 – 7.5	Reduced to 10%, down from the current 20%
   Between 7.5 – 10	Reduced to 15%, down from the current 20%
   Between 10 – 12.5	Reduced to 20%, down from the current 30%
   Between 12.5 – 15	Reduced to 25%, down from the current 30%
   Above 15	Continue at 30%, without exemptions

2. Connecting India, one road at a timeThe Central Government has proposed to construct 2000 km strategic highways, a
   stretch of 9000 km eco-development corridors and 200 coastal and port roads, in a
   bid to enhance connectivity. Airports too will get a boost, with a 100 more airports
   to be developed by 2024, supporting the Central Government’s ‘Udaan’ scheme.
3. Building a healthier nationWith an allocation of INR 69,000 crore towards the health sector, the Government
   also plans to set up hospitals in Tier 2 and Tier 3 cities. Swachh Bharat continues to
   be at the core of the plan for improved sanitation, with INR 12,300 crore allotted
   to the nationwide initiative.
4. Dream homes, now a realityThe Government’s ‘Housing for All’ initiative takes a step into the future. It has
   been proposed to extend the date of loan sanction to avail additional deduction of
   INR 1.50 lacs by one year, i.e. March 31, 2021. Affordable housing now proposes to
   offer promising benefits for buyers.
5. Education for allThe Government aims to make a provision of INR 99,300 crore to boost the
   education sector. India being the youngest country in the world with an average
   age of 27 years, this vision extends to providing job and life skills to the working
   age population.

Budget for the future

A budget that is aimed to generate employment and make growth inclusive to blur urban
and rural lines, every section of the society gets a mention. Speaking of Budget 2020
highlighting education, your education or that of a loved one is equally essential, which is
what makes it prudent to plan ahead.

Make your journey InCredible not just this Budget, but every Budget going forward!