Impact of the union budget 2020 on different sectors
Impact of Union Budget
The Indian economy has been looking at a slowdown and expectations from budget 2020 have been high. What will be the impact of this budget on different sectors? Will it raise the `investor spirits’ & boost growth. Let’s find out :
Impact on the union budget 2020 on different sectors
- Information Technology: The impact of the union budget on industries like information technology could be positive. There has been an allocation of Rs. 8,000 crore for a National Mission on Quantum Computing and Technology. Internet connectivity to 100,000+ Gram Panchayats
- Infrastructure: The impact of the union budget on infrastructure could also be a good one. The Finance Ministry announced that it would extend the gas grid by 11,000 km, giving a boost to gas stocks. New Power generation companies will have to pay only 15 per cent corporate tax, which should help meet growing power needs. 100 new airports are to be developed by 2025 under the UDAN scheme
- Agriculture: In the agriculture sector, farmers may have some reason to cheer. Among the budget announcements for this sector was the setting up of Kisan Rail through the PPP model to transport perishable goods quickly. The government also plans to expand the PM KUSUM scheme for solar pumps to cover 2 million farmers. Farmers will be incentivized for going solar !
- Renewable Energy: The renewable energy sector also got a boost with a budget announcement of Rs. 20,000 crore.
- A single investment clearance window will make the lives of entrepreneurs easier.
- Bank deposits would be happy to note that deposit insurance has been increased to Rs. 5 lakh from Rs. 1 lakh earlier.
- Dividend distribution tax (DDT) removed. Dividends will have to be taxed based on the recipient’s income tax slab
- The Additional Rs. 1.5 Lakh tax deduction on interest paid for affordable housing loans has been extended to March 2021. This would give some relief to those who are planning to buy a new homes
- Individual income taxpayers will be happy with the reduction in rates. However, you will have to give up your existing exemptions and deductions to take advantage of the lower rates.
- Travel and Tourism: The tourism sector should benefit from an infusion of Rs. 2,500 crore.
Who’s not happy?
- Mutual Fund investors who were expecting a reduction in long-term capital gains tax were disappointed.
- If you love your imported shoes and furniture, be prepared to shell out more because of higher custom duties. However, local manufacturers would be pleased.
- Importers of medical equipment have to take a hit with the imposition of a health cess
- Higher excise duty has also been proposed on tobacco products
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