Detailed Analysis of Budget 2020-21
Hello doston, Angel One ke is podcast mein aapka swagat hai!
Doston har saal ki shuruaat mein, India ki finance minister India ka national budget announce karti hain.
Budget 2020-21 ke around conversations purane ho chuke hain - lekin isse pehle ki next year ka budget announce ho, aapko previous year ke budget ke main themes aur criticisms explore kar lena chahiye - afterall, isse aap national budget par ho rahi charcha ko behtar samajh paaoge.
Kyunki coming month, yani Feb 2021 mein next year ka budget announce kiya jayega, and private aur public entities ne already budget recommendations dena shuru kar diye hain.
Toh shuru karein? Alright.
Doston budget ki details dekhne se pehle ek baar kuch macro-economic indicators ko review kar lete hain. 2018 se 2019 ke period mein GDP growth 6.8% par thi. Agle saal, GDP growth fell down to 5%. Lekin 2020 se 21 ke period mein growth forecasts have been set to 6.5% - ye national economy ke liye ek achcha sign hai.
Doston last year ke budget allocations toh aapne dekhe hi honge. Lekin budget mein kuch major highlights hain, jo aapko miss nahi karna chahiye. Check these out:
Sabse pehle baat karte hain startups ki. 2020 ke budget mein startup activity promote karne ke liye kai measures liye gaye hain. Firstly, startups ko behtar early life seed funding provide karke ideation aur development support provide karane ka objective hai. Saath hi, Indian government Intellectual Property ke protection ke liye ek portal develop karne ke plan mein hai - startups ko encourage kiya ja raha hai ki wo is portal ko use karke apne unique products aur services ko IP rights ke zariye protect karen - this will promote a healthy startup environment in India. But this is not all - startup activity boost karne ke liye financial support bhi provide ki jaa rahi hai - for example, the limit of turnover for startups to claim a tax holiday has been increased 3 fold, and Employee stock ownership plan ke chalte, startup employees can now defer tax liability for five years, or until they leave the company.
Sounds cool, right? Chalte hain next point ki oor aur taxes par discuss karte hain.
Doston 2020-21 ke budget mein kuch important tax revisions kiye gaye the. Ecom operators, jo indian sellers ke items ko sell kar rahe hain, unhe sold goods par 1% tax pay karna hoga. Saath hi, dividend distribution tax ki liability company se individual par shift kar di gayi hai. Iska matlab ye, ki jo 15% DDT abhi tak dividend distribution par companies pay kar rahi thi, will now be removed. Ye tax liability ab dividend ke recipient ke upar shift kar di gayi hai.
There is another cool concept jo is discussion mein include karna chahiye - and that is SEP. Detail mein dekhte hain:
SEP stands for Significant economic presence. Ye basically un companies se result karta hai, jo market mein present hain, lekin invisible hain. Ye usually amazon aur google jaise tech giants hote hain - jo India mein business kar rahe hain, lekin unki activity internet pe limited hai, aur ye companies country mein physically present nahi hain. G-20 OECD mein is topic par discussions chal rahe hain, aur jab tak ispar global consensus nahi milta hai, tab tak India ne SEP ke regarding taxation aur business decisions withold kar rakhe hain.
So until now, humne budget mein taxation aur startups par focus kiya. Ab baat karte hain IT sector ke baare mein Information Tech aur Business Process management companies ke liye kai saare updates hain. In fact, 2020 budget mein technology par heavy focus dekhne ko mila. To begin with, India ne agle 5 saal mein quantum computing par 8000 crore spendings ke liye allocate kiye hain - ye fund computing research mein jayega, and India ko quantum technology mein ek globally ek leadership position tak le jaane me madad karega. Saath hi, data center parks establish karne ke liye bhi provisions banaye jaa rahe hain. In factors ke chalte India mein business karna ab aur aasan hoga. Saath hi, electronics manufacturing push karne ke liye manufacturing clusters setup aur improve kiye jayenge. All in all, isme ek common theme emerge ho raha hai - aur wo hai smart technology aur smart business ka promotion.
Tech ke topic par ek aur baat: India ke governance system ko bhi digitally connect karne ka plan hai - iske tehat, India ke 1,00,000 gram panchayaton ko fibre internet ke saath online connectivity di jayegi. In addition, medium aur small sized businesses ko aur competitive banane ke liye ek e-logistics portal set up kiya jayega, jisse naye jobs bhi dekhne ko milenge.
Doston stock market investors ke liye bhi ek interesting provision diya gaya hai. Budget 2020-21 mein ek nayi entity ko set up karne ka plan hai, jiska naam hoga Investment Clearance Cell -- Ye investors ko end-to-end support provide karega, including pre-investment advisory. Investment clearance Cell state aur national level clearances ke liye bhi responsible hoga.
Naye budget mein individual taxation par bhi kuch interesting changes laaye gaye hain. Doston, is budget mein ek nayi income tax scheme present ki gayi thi, jiske under income tax 7 different income tax slabs ke across different rates par charge kiya jayega. In naye tax slabs mein agar aapi income 15 lakhs se zyada hai, toh you will be paying as much tax as in the current regime. But agar aapki income 15 lakhs se kam hai, toh aapko nayi regime mein lower rates ka benefit milega. Aap current income tax regime ke 3 income slabs ke baare mein toh jaante hi hongein. Going forward, income tax payers naye tax slabs ke liye opt kar sakte hain, lekin iske saath unko ek drawback bhi rahega.
Is regime mein ek critical drawback rahega deductions - kyunki, naye tax slabs ko opt karne ke baad aap kai saare common deductions claim nahi kar sakoge. Is nayi scheme mein aapko taxation beneficial hoga ya nahi, will be better told by a CA. Lekin is naye tax structure se government will forego a revenue of over Rs. 40,000 crores.
And lastly, economy ko further stimulate karne ke liye, government infrastructure improvements ki oor kiye gaye foreign direct investment par 100% deductions grant karegi. However, is proposal ke according, in funds par 3 saal ka lock-in period apply hoga. In addition, manufacturing mein 15% tax rate ka concession ab power aur electicity segment ke liye bhi apply hoga. Is move se government power aur electricity segment mein investment attract karne ki koshish kar rahi hai.
However, 2020-21 ke budget mein kai elements criticize bhi kiye gaye the. Dekhte hain, with in 4 points ke saath: Media mein analysts ne India ke declining GDP growth rate ko kaafi serious concern bataya hai. Despite the measures that the government is taking to stimulate manufacturing and the markets in general, next year ka 6.8% growth target thoda unfeasible dikhai de raha hai. COVID pandemic ke slowdown se bhi growth rates affect hue hain, and lockdown ne in numbers ko significantly affect kiya hai.
Foreign direct investment ko stimulate karne ke liye measures liye gaye hain, lekin analysts are doubtful, ki in measures se FDI par koi significant impact hoga ya nahi. That is because, foreign investors apne target geography ki currency mein stability highly value karte hain, Agar ye stability maintain nahi ki jaati, toh foreign investors ke liye long run me India ek attractive investment nahi dikhai dega.
Infrastructure projects mein investments plan kiye gaye hain, lekin in investments ka direction unclear hai, to a great extent. Saath hi, agar in investments ko sahi projects tak ek urgent time-frame mein pump nahi kiya jaata, toh infrastructure projects se economy stimulate karne ka objective reach nahi ho payega.
Kuch experts ne naye projects par tax rates cut karne ka suggestion diya hai - not for one or two sectors, but for all the sectors and all projects. Covid pandemic ka economic slowdown combat karne ke liye indirect tax rate cuts se bhi consumption fuel kiya jaa sakta hai, lekin iske liye tax rates ko further cut karna hoga.
Toh doston, ye the last budget se related kuch criticisms aur concerns. In concerns ke chalte finance ministry ko naye recommendations bhi diye jaa rahe hain.
Aane waale saal ke budget se kai naye expectations hai - but whether these expectations will be fulfilled or not is simply a matter of time.
In the coming months, news updates ko miss na karen - kyunki next year ka budget jald hi announce kiya jayega, aur is budget ko sahi context mein analyze karke aap stock market aur apne finances mein kuch important decisions le paoge.
Stay tuned to our upcoming podcasts, or visit www.angelone.in to stay in the loop!
Tab tak ke liye, Angel One se aapko alvida, and happy investing!
