The Union Budget for the financial year 2020-21 will be presented by Union Finance Minister Nirmala Sitharaman on February 1. The preparation of the Budget began with a customary Halwa ceremony on Monday.
To prevent any leaks before the Union Budget, the Finance Ministry officials, who are involved in the preparation of the Budget documents move to the basement of the North Block and remain cut off from their families for around 10 days.
Ahead of the Union Budget, an Economic Survey is presented by the Chief Economic Advisor. This year, it would be presented by Krishnamurthy Subramanian on January 31.
Union Budget 2020 Date:
The Union Budget 2020 will be presented in the parliament on February 1, 2020, Saturday, by the Union Finance Minister Nirmala Sitharaman.
Union Budget 2020 Time:
The Union Budget 2020 will be presented in the parliament at 11 am on February 1. Usually the duration to present the Union Budget is 90 to 120 minutes. So the Union Budget is likely to continue maximum till 1 pm.
Till 2016, the Union Budget was presented on the last working day of February. Former finance minister Arun Jaitley changed the tradition in 2017 when he presented the Budget on February 1. In the same year, the government scrapped the 92-year-old practice of presenting rail budgets and general budgets separately and it was clubbed along with the Union Budget. The Railway Budget will be presented along with the Union Budget.
Finance Minister Nirmala Sitharaman became the second woman to present the Union Budget after Narendra Modi-led National Democratic Alliance returned to power in May last year. Former Prime Minister Indira Gandhi was the first and only woman to have presented the Union Budget.
Here are the five major announcements that India can expect from the Union Budget 2020:
1. Income tax relief: It is widely expected that basic income tax exemption may go up from the current Rs 2.5 lakh per annum in order to help put more disposable income in the taxpayer’s hands. The current income tax slabs might be revised as well.
2. Deductions under Section 80C, which is most commonly used by salaried taxpayers, might be increased to a minimum of Rs 2 lakh from the current Rs 1.5 lakh in order to encourage investments and savings. Notably, the current limit has anyways not been revised since the last five years.
3. Standard deduction might also be revised upwards to at least Rs 1 lakh from the current Rs 50,000 for salaried individuals.
4. Long-term capital gains (LTCG) tax is also expected to be removed this time in order to improve investor sentiment and drive flows into the capital markets.
5. Last year, the government had provided a Rs 1.5 lakh tax exemption for affordable houses which cost below Rs 45 lakh. That limit is expected to be raised to Rs 75 lakh this year, keeping in mind the real estate prices in metro cities.