what are the new income tax rates that can be availed by giving up deductions ?
The new budget introduced by FM reduced income tax rates will be optional and will be available to all those who are willing to give up on certain deductions and exemptions. Finance Minister Nirmala Sitharaman added that currently there are 100 deductions/exemptions exist, out of which are around 70 have been removed in the new regime. The government will give up on ₹40,000 crore per annum in revenue from new income tax rates.
Govt cuts income tax rates, income between Rs 5-7.5 lakh to be taxed at 10%
The government said that under new personal tax regime, income between ₹5-7.5 lakh will be taxed @ 10% compared to 20% now and income of ₹7.5-10 lakh will be taxed at 15% instead of 20%. Those earning between ₹12.5 lakh to ₹15 lakh will pay 25% tax against 30%. New rates can be availed by those giving up certain deductions only.
How much and on what does the govt have planned to spend in the next coming years ?
As per the Union Budget 2020-21, the government have plans to spend a total of ₹30 lakh crore on things like health , education, energy, defence and pension and others. The government plans to spend the most of amount on Major Subsidies, Defence, Interest and Pension at ₹7 lakh cr, ₹3 lakh cr, ₹2 lakh cr and ₹2 lakh cr, respectively.
Govt is planning to the electrification of 27,000 kms of railway tracks
In Budget speech, FM Nirmala Sitharaman announced that the government is planning the electrification of 27,000 kms of railways tracks. Sitharaman further announced that the proposal to set up the large solar power capacity alongside rail tracks on land owned by the Railways. Previously , Railway Minister and Coal Minister Piyush Goyal said that the Indian Railways network will be 100% electrified by 2024.
Sensex falls over 700 points , Nifty below 11,750 after budget announcement
Equity index Sensex on Saturday fell by over 700 points to an intraday low of 39,930.46, while the broader Nifty 50 index briefly slipped below its symbolically important level of 11,750. This follows FM Nirmala Sitharaman’s Budget proposal to remove the dividend distribution tax levied on dividends issued by companies but making dividends taxable in the hands of investors.