Analysis of Budget 2020 presented by FM Nirmala Sitharaman in Parliament

Congress' Wayanad MP Rahul Gandhi said the Union budget is like the Centre, saying that it is repetitive and continues to be rambling. The Congress lawmaker also called the Union Budget 2020 'hollow' saying that it lacks a central idea.

Rahul Gandhi on Budget: The main issue facing is unemployment. I didn't see any strategic idea that would help our youth get jobs. I saw tactical stuff but no central idea. It describes govt well, lot of repetition,rambling-it is mindset of govt, all talk, but nothing happening. pic.twitter.com/IJv5LdYJsW

— ANI (@ANI) February 1, 2020

Delhi CM Arvind Kejriwal tweeted his displeasure with the Union Budget saying if Delhi is not a priority for the BJP, why vote for BJP in the upcoming elections. He further added that if this is the treatment BJP has in store for Delhi pre-elections post-elections then what can Delhites expect post polls.

दिल्ली को बजट से बहुत उम्मीदें थी। लेकिन एक बार फिर दिल्ली वालों के साथ सौतेला व्यवहार हुआ। दिल्ली भाजपा के प्राथमिकताओ में आता ही नहीं, तो दिल्ली वाले भाजपा को वोट क्यों दे? सवाल ये भी है की चुनाव से पहले ही जब भाजपा दिल्ली को निराश कर रही है तो चुनाव के बाद अपने वादे निभाएगी?

— Arvind Kejriwal (@ArvindKejriwal) February 1, 2020

The Union Budget for financial year 2020-21 has so far been unable to bring cheer to the market and the equity indices slumped with the BSE Sensex falling over 700 points, reports news agency IANS.

Around 1.30 p.m, the Sensex touched an intra-day low of 40,015.37, 708.12 points lower than the previous close of 40,723.49 points.

However, it has recovered from the low and at 1.39 p.m. it was trading at 40,188.53, lower by 534.96 points or 1.31 per cent from the previous close of 40,723.49

Finance Minister Nirmala Sitharaman has concluded presentation of Union Budget 2020-21.

Under Vivad Se Vishwas Scheme, taxpayer to pay only amount of disputed tax, will get complete waiver on interest and penalty, if scheme is availed by March 31, 2020

Rules of origin requirements to be tweaked in Customs act. Idea seems to be to crack down on misuse of FTAs to import stuff from China

— sukumar ranganathan (@HT_Ed) February 1, 2020

Finance Minister Nirmala Sitharaman: Govt to further ease process of allotment of PAN. Govt to launch system for instant allotment of PAN on basis of Aadhaar

Govt extends additional ₹1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.

The FM has also said there has been a significant reduction in available income tax exemptions (for those who want to continue to be taxed under old slabs) from 100 to around 30.

— sukumar ranganathan (@HT_Ed) February 1, 2020

Finance Minister Nirmala Sitharaman: Dividend Distribution Tax to be removed, companies will not be required to pay DDT, dividend to be taxed only at the hands of recipients at applicable rates

FM Nirmala Sitharaman: In order to promote affordable housing projects, I propose to extend date of approval of affordable housing projects for availing tax holiday by one more year.

₹40,000 cr per annum will be revenue foregone from new income tax rates for individuals, says FM.

But people can choose to remain under old tax slabs with exemptions. Could be complex

— sukumar ranganathan (@HT_Ed) February 1, 2020

Income tax rates will be significantly reduced for those who forego reliefs, exemptions: FM.

Propose to bring a new, simplified Income Tax regime. Under it, no income tax for an individual earning up to ₹5 lakh per annum.

For those with income between ₹5-7.5 lakh, new income tax rate will be 10%

For income between ₹7.5-10 lakh, new tax rate is 15% against prevailing 20%

For income between ₹10-12.5 lakh, new tax rate is 20% against present 30%

For income between ₹12.5-15 lakh, new tax rate is 25%

Income above 15 lakh will continue to be taxed at the rate of 30%