India Budget 2020 Date, Time, Expectations: There is a lot, taxpayers can look forward to when Finance Minister Nirmala Sitharaman presents her second Union Budget speech in the Parliament on February 1. If reports spilling out of the Finance Ministry get true, the Central government may announce several measures to put more money in the hands of taxpayers in order to boost demand and household savings. These reliefs could be in the form of a change in tax slabs, a raise in standard deduction limit, provision to claim more deductions under Section 80C of the Income Tax Act. Some changes may be announced to make schemes like National Pension System (NPS) popular among the working people, especially the young and the salaried. However, one shouldn’t be much surprised if the Budget doesn’t provide any new income tax relief as it will have a negative effect on the Centre’s direct tax collections. As the excitement builds for Budget 2020, we track all the top expectations and analysis of how you will be impacted.
Budget 2020 India Date
Union Budget 2020 will be presented by FM Sithraman on February at 11 am in the Parliament. You can read all details about timings of Budget speech here
Public Provident Fund (PPF) account deposit limit raise
Ahead of the budget, it has bee reported that the govt may raise PPF deposit limit to Rs 2.5 lakh. The PPF limit raise could be in sync with a raise in Section 80C deduction limit. "Raising the PPF annual deposit limit to Rs 2.5 lakhs needs to be in sync with the limit for deduction under Section 80C of the Income Tax Act, which should also be raised so that the taxpayers not only get the benefit of higher deduction but also the interest on PPF on the additional amount of Rs 1 lakh," Divya Baweja, Partner, Deloitte Haskins & Sells LLP, recently told FE Online. Read More Here
Income Tax slab change expected
Tax experts believe that a tax-free income up to Rs 8.75 lakh could be possible if the government increases Section 80C deduction limit to Rs 2.5 lakh. "It would leave more disposable income for consumer spending and demand revival. A salaried individual can have a tax free income up to Rs 8.75 lakh after claiming a standard deduction of Rs 50,000 and the deductions for savings of Rs 2.5 lakh under section 80C, NPS of Rs 50,000 under section 80CCD(IB) and medical insurance of Rs 25,000 under section 80D," said Archit Gupta, founder and CEO, Clear Tax. Read Details
WATCH VIDEO |What is Union Budget of India?
Will govt make Senior Citizen’s Savings Scheme (SCSS) tax-free?
SBI Research has suggested the government to provide full tax rebate on Senior Citizen's Savings Scheme (SCSS) in the upcoming budget. "Government has an excellent scheme for senior citizens. Under the Senior Citizens Savings Scheme (SCSS), a senior citizen can deposit Rs 15 lakh and the current interest rate is 8.6%. However, the interest on SCSS is fully taxable which is a major drawback of this scheme (the interest amount for Rs 1 lakh deposit for 5 years is around Rs 51,000 which is taxable)," SBI Research said recently.
Top changes by Modi govt since 2014
Since assuming office in 2014 - after a landslide victory - PM Narendra Modi-led Union government has brought about various changes ranging from shifting the budget date to ditching the age-old practice of carrying budget documents in a briefcase. Check all changes here