India's Finance Minister Nirmala Sitharaman will rise in Lok Sabha to present the Union Budget speech for financial year starting April 1, 2020, at 11 am. While Budget 2020 will be a voluminous document, IndiaTvNews.com brings you five simple things that will help you understand the Budget 2020 documents.
5 tips that will help you stay ahead in understanding Budget 2020:
The Union Budget gives the account of the government's finances for the fiscal year (April 1 to March 31). Budget gives all vital informations capital budget and revenue budget. Understanding budget documents is not easy, it has two two parts-- A and B.
You need to carefully read the Part - A & Part - B of the Budget Speech of the Finance Minister to understand the proposals.
Part A: It focuses on the macro aspects of the economy and large-scale plans that impact all the states. Introduction of new Schemes, Priorities of the Government and focus areas are also indicated in this part--new schemes like Ujjwala Yojana and Saubhagya Yojana. For proper and clear understanding of this Part, it is necessary to refer to Volume -1 and /volume-2 which deals with the entire matter in a very objective and quantitative terms.
Part B: This part deals with Taxation proposals. It has direct bearing over your family finances, which may squeeze or spread due to the proposals. This part is important for an individual as it deals with various taxation proposals. PART B should also be read with Finance Act. Finance Act is a document containing Legal provisions. Here are key points that come under this part.
Ordinary taxpayers: The income tax slabs and corresponding rates. Any changes in this part will directly impact your finances. In Budget 2019, Finance Minister had increased the tax rate for people with incomes of Rs2-5 crore to 39 per cent and for those with income of Rs 5-10 crore to a whopping 42.71 per cent. Following this, the rates rose by 3.12 per cent and 6.8 per cent for taxpayers in these two brackets.
Senior citizens: They look for new scheme specially designed for them, in terms of social security, retirement (pension plan), exmption on interest income and so on. It is expected, in this budget, the Finance Minister may hike the basic exemption limit for senior citizens from Rs 3 lakh to Rs 5 lakh.
Home-makers: Customs and excise duty changes could have some impact. In Budget FY20, custom duties were hiked on cashew kernels, auto parts, tiles, marble slabs, CCTV camera, optical fibre camera and others. And on imported boks, 5 per cent cusotms duty was imposed. Such changes impact household budget.
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