Our FM Nirmala Sitharaman presented the longest-ever budget in India’s history, this Saturday. From a new tax plan to boost infrastructure expenditure to a 16 point plan for Agri, the government tried to revive the declining growth rate, even estimated nominal growth rate to be at 10 perc in GDP.
Leaders from opposition parties are describing this budget as ‘hollow’ but PM Modi welcomed it for its ‘vision and action’. Having said that, let’s have a look at key takeaways from Budget 2020-21:
Now, let’s compare the old tax plan with a new tax regime at 2 income slabs of 10L& 20L p.a through a table below-
Though a new tax plan offers lower income tax rates it excludes deductions means the only way to save tax with the new plan is to not save anything and don’t have any home loan. I have rarely come across a person waging 10-20 lacs a year with no investments, no insurance, and no home loan. So it’s a bane for me.
I have mentioned key takeaways from individual taxpayers or the investor’s points of view. An individual have to decide whether it’s boon or bane but clearly I had a better expectation.
No doubt the government has other plans as well to boost the economy and reviving agricultural growth through a 16- Point action plan and certainly have given a miss to manufacturing barring a 6K Crore allocation to BharatNet program and defense sector with lower than expected allocation.