The FM of India and prominent BJP leader at center, Nirmala Sitharaman presented the budget for FY 20-21 on 1st February in the parliament revealing key plans and programs of the Modi government to take the economy of India to a new height. The key highlights of this budget were increasing the income of people, saving money on tax with new tax slabs, and enabling the citizens to improve their purchasing power. New slabs for the personal income tax were introduced and this will boost the savings of most Indians. Shaivya Nautiyal and Dinkar Nautiyal from B&M Global Solutions present a brief analysis of budget 2020-21.
The budget this year has given importance to farm and healthcare sectors and allotted funds for its growth. This government wants the Indian economy to achieve a $5 trillion milestone and steps are being taken for that. It aims to give more power and help marginalized people and give encouragement to wealth creation.
As for the new tax slab in the budget, an annual income up to Rs 5 lakh will not be taxed. The income of Rs 5-7.5 lakh will be taxed at a rate of ten percent while income from Rs 7.5-10 lakh will have fifteen percent tax. People with an income of Rs 10-12.5 lakh will have to pay twenty percent tax. Income from Rs 12.5-15 lakh will be taxed at twenty-five percent and incomes more than Rs 15 lakh will be taxed at thirty percent.
According to online reports received by Shaivya Nautiyal and Dinkar Nautiyal from B&M Global Solutions, companies that produce electricity and power will have a tax of fifteen percent and cooperative societies will have to pay twenty-two percent taxes to the government. If you invest your money in buying sovereign wealth funds for infra plans and projects, you will get a hundred percent tax concession. New provisions will be made in the income tax laws for enabling faceless appeals. If anyone is facing a dispute and pays the tax by 31st March, they will not have to pay interest and penalty.
Customs duty on products like furniture, footwear, and domestically manufactured auto parts will be increased. Excise duty on tobacco and cigarettes will be raised. Customs duty on fuses, chemicals, coated papers of low weight, plastics, and imported newsprint will reduce. A health cess will be levied on medical devices from other countries.
The GST returns for business owners, start-ups, and MSMEs will be made easier and simpler starting from April 2020. Start-ups that have an annual income of Rs 100 crore will be given a hundred percent deduction till 3 continuous assessment periods. Insurance in banks will increase to Rs 5 lakh. Funds will be provided for power and energy, BharatNet program, transportation, and opening of new airports. New museums will be opened. Many more programs are launched to boost the economy in this budget.
This article is written by Shaivya Nautiyal and Dinkar Nautiyal from B&M Global Solutions.
Tags: Shaivya Nautiyal, Dinkar Nautiyal, B&M Global Solutions Reviews, B&M Global Solutions, BM Global solutions, BM Global solution, BM Gobal Solutions Reviews, B&M Global Solutions Complaints
YOU ARE READING
B&M Global Solutions
RandomDinkar Nautiyal was born and brought up in Dehradun till his schooling days and finished his Btech from Hyderabad and did his MBA from Amity University, Noida. He is the founder and mentor at B&M Global Solutions.
