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.
- Heralding a new income tax regime
You 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
- Connecting India, one road at a time
The 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.
- Building a healthier nation
With 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.
- Dream homes, now a reality
The 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.
- Education for all
The 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
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!