The document analyzes India's Union Budget 2020-21, highlighting key themes of aspirational India, economic development, and a caring society. Major changes include a new income tax regime, increased bank deposit insurance, and an emphasis on agricultural development alongside corporate tax cuts. It also expresses disappointment with the budget's lack of substantial direction and reduced allocations for critical sectors like employment and skill development.

1. AAAAAAAAAA
Analysis of
Union
Budget
2020-21
BY AJAY SHARMA
MTA CERTIFIED
in/erajaysharma

2. FOREWORD
By Ajay Sharma
MTA Certified

3. Agenda
 Income Tax
 Deposit Insurance
 Education & Health
 Corporate Tax
 Privatization
 NRI Tax
 Agriculture, Irrigation & Rural Development
 What got Cheaper & Costlier
 Opinion

4. Three Prominent
Themes of Budget
Hon’ble Finance Minister
(FM) has listed three(3)
themes of the Union Budget
:
1. Aspirational India
2. Economic Development
3. Caring Society (Ease of
Living)

5. Income Tax
1. A new income tax regime has
been proposed. A taxpayer
can opt for it by forgoing 70
tax exemptions.
2. A taxpayer has an option to
choose between existing tax
regime and new tax regime.
Example

6. Deposit
Insurance
Finance minister Nirmala Sitharaman announced in her
Budget speech last week that the government will increase
the bank deposit insurance coverage to Rs 5 lakh per
depositor, from Rs 1 lakh at present.
Would depositors benefit?
The DICGC is liable to pay every depositor, through the
liquidator, when a bank fails. The key aspect to understand
here is ‘liquidation. There have been no instances recently,
wherein a bank has been liquidated and depositors have
got the deposit amount from the DICGC.
Harsh Roongta, a Mumbai-based registered
investment advisor says, “The DICGC scheme is the
most impractical scheme. What is the point of an
insurance scheme wherein depositors have to wait for
years after the event has happened for their own
money?”

7. Education &
Health
For Education
In 2019, allocated 95000 cr.
In 2020, allocated 99300 cr.
3000 cr. For Skill Development
Online Degree Promote with new
education policy
For Health
In 2019, allocated 62000 cr.
In 2020, allocated 69000 cr.

8. Corporate Tax
As per the new proposals, companies will not be
required to pay Dividend Distribution Tax (DDT).
The dividend will be taxed only at the hands of
recipients at applicable rates.
This rule change will cost the govt., a revenue loss of
Rs. 25,000 crores.
1. To Promote FDI & Investment,
corporate tax cut from 25.2%
to 22% to spur growth
2. New power generation
companies will have to pay
just 15 per cent tax under the
new corporate tax regime.

9. Privatization
Union Finance Minister Nirmala
Sitharaman announced during
her Budget speech in Lok Sabha
the government''s plan to sell a
part of its holding LIC by way of
Initial Public Offer (IPO). "An
attempt is being made to
promote privatisation by
announcing the sale of
government share in LIC and IDBI
Bank.

10. NRI Tax
1. NRI Definition changed
2. Earlier 180+ days out from
India considered as NRI
3. Now 246+ days will be
considered
4. All set to tax NRI who don’t
pay tax in any other country

11. Agriculture,
Irrigation &
Rural
Development

12. 16 Action
Points
Pradhan Mantri Kisan Urja Suraksha evem Utthan
Mahabhiyan (PM KUSUM) to be expanded to provide 20
lakh farmers in setting up standalone solar pumps.
Connect and sell to grid: enable farmers to set up solar
power generation capacity on their fallow/barren land and to
sell it to the grid.
Resource efficiency: Resource efficiency can be achieved by
encouraging balanced use of all kinds of fertilizers and Zero
Budget Natural Farming (ZBNF).
Market connectivity: The budget also proposed integration of
negotiable warehousing receipts (e-NWR) and National
Agricultural Market (e-NAM).
“Jaivik kheti” Portal: Budget 2020 proposed to strengthen
online national organic products.
Budget allocation for agriculture has
increased by just 3% — from Rs 1.39 lakh
crore in 2019-20 to Rs 1.43 lakh crore —
amid acute rural distress.

13. Storage &
Logistics
“KISAN RAIL” : Kisan Rail Scheme of trains with refrigerated
coaches for farm produce.
“KRISHI UDAAN”: It will be launched by the Ministry of Civil
Aviation on international and national routes to help improve
value realisation, especially in the Northeast and tribal districts
DHAANYA LAKSHMI is a 'Village Storage Scheme' run by
women's self-help groups. The aim of the scheme is to
provide holding capacity for farmers. This will help Women in
villages and the rural part of the country to retain their status
as "Dhaanya Lakshmi".

14. Agriculture
Credit
Facilitate doubling of milk processing
capacity from 53.5 million MT to 108 million MT
by 2025.
Aim is to eliminate Foot and Mouth
disease, brucellosis in cattle and peste des
petits ruminants (PPR) in sheep and goat by
2025
Setting agriculture credit target of rupees 15 lakh
crore for the year 2020-21.
All eligible beneficiaries of Pradhan Mantri Kisan
Samman Nidhi (PM-KISAN) will be covered
under Kisan Credit Card (KCC) scheme.
Animal
Husbandry

15. Blue Economy
Marketing and export: For better marketing and
connectivity cluster basis approach will be
adopted and emphasis would be given to one
product one district.
Raising fish production to 200 lakh tonnes by
2022-23.
Development of fisheries sector: Rural youth in
coastal areas to work as 'Sagar Mitras' in fisheries
extension. 3,477 Sagar Mitras and 500 fish-farmer
producer organisations will work as sagar mitra.
Horticulture

16. Caring Society
(Ease of Living)

17. What got Costlier
Due to increase in custom duty, many imported products become costlier like:
1. Footwear
2. AC
3. Mobile
4. Fans
5. Fridge
6. Headphones
7. cooler

18. What got Cheaper
1. Newsprint
2. Raw sugar
3. Skimmed Milk

19. Opinion It was a very, very disappoint budget. It had no
direction.
Didn't hear the word slowdown once. That to me
sounds like a denial.
Where are those solid markers? Core schemes
have been undermined. The MGNREGA reduced
by 13%, jobs and skill development - allocation
reduced by 7%.
Auto Sector
Real Estate sector
Education & Health
Demand & Consumption

20. “A penny saved is worth two
pennies earned . . . after taxes. ”
- RANDY THURMAN

21. Contact
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