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Highlights Of Union Budget 2020

By Dixit Arora +2 more

With the entire nation’s eyes upon Nirmala Sitharaman, the BJP Finance minister, there were a lot of hopes pinned upon this budget.

Sitharaman has proposed a three-part focus to transform the economy – fulfilling India’s aspirations, inclusive growth and development for all segments and creating a society that cares. She has also proposed a sixteen point plan for transforming the agricultural sector.

She spoke of the success of the government in reducing central government debt, achieving inclusive growth and the brilliance of GST in reducing an average household’s expenditure by 4%. She claims that 60 lakh new taxpayers and 105 crore e-way bills have been added under the new GST regime. Estimated growth of 10% in the coming year 2020-21 is expected to be achieved by a boost in purchasing power. This boost is to be achieved by tax reductions in urban circles and an increase in income in rural circles. 

Health and Cleanliness

  • Government to invest Rs 69,000 crore in the health sector and over twelve thousand crores in the Swachh Bharat endeavour
  • Hospitals with Private investment under PPP to be built in Tier 2 and Tier 3 cities
  • Expansion of Jan Aushadhi scheme


Simplified tax structure with income slabs and taxes as following:

No tax for income up to Rs 5 lakh

10% for Rs 5-7.5 Lakh

15% for Rs 7.5-10 Lakh

20% for Rs 10-12.5 Lakh

25% for Rs 12.5-15 Lakh

30% for income Rs 15 lakh and above

  • Dividend distribution tax for companies have been removed
  • Reduction in corporate tax for companies, new charges are 22%
  • To boost infrastructure, the government has offered a cent percent tax concession to wealth funds with plans of investing in infrastructure
  • ‘Vivad se Vishwas’ scheme is aimed to resolve appeals raised by direct taxpayers. It gives the taxpayer a complete waiver on any extra penalty or interest charges and allows him/her to only pay the amount of the disputed tax.

Affordable Housing

  • To make life easier, an additional tax benefit of Rs 1,50,000 to be extended on interest paid on affordable housing loans by the year to Mar 2021
  • Tax holiday offered to those developing affordable housing


  • Rs 1,70,000 Cr investment in transport infrastructure to be suggested
  • 9,000 km of an economic corridor to be set up
  • An expressway for routes from Chennai to Bangalore will be started and that from Delhi to Mumbai will be completed
  • Rs 18,600 Crore suggested for a suburban rail project in Bangalore
  • High-speed train to be started between Mumbai and Ahmedabad
  • 100 new airports by 2025 and privatization of one major airport
  • Complete electrification of 27,000 km of lines


  • Bank deposits now safer with insurance cover of Rs. 5 Lakh vs the earlier Rs 1 lakh
  • Decriminalisation of civil offences within Companies Act
  • FDI has increased in the last 5 years from $190 bn to $284 bn

Disclaimer: The information provided here is for educational/awareness purposes only and is not intended to be a substitute for medical treatment by a healthcare professional and should not be relied upon to diagnose or treat any medical condition. The reader should consult a registered medical practitioner to determine the appropriateness of the information and before consuming any medication. PharmEasy does not provide any guarantee or warranty (express or implied) regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of the information; and disclaims any liability arising thereof.

Links and product recommendations in the information provided here are advertisements of third-party products available on the website. PharmEasy does not make any representation on the accuracy or suitability of such products/services. Advertisements do not influence the editorial decisions or content. The information in this blog is subject to change without notice. The authors and administrators reserve the right to modify, add, or remove content without notification. It is your responsibility to review this disclaimer regularly for any changes.


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