Budget 2020 Highlights and Analysis

Continuing the focus to enhance the ease of doing business in India, the Finance Minister has announced various schemes to promote Start-ups. The budget is expected to enhance the disposable cash in the hands of the middle-class and thus accelerating the spending and growth. 

Below are 20 key highlights of 2020 Budget:

1)  Introduction of Single window clearance for start-ups through an online platform 

2)  Introduction of Digital platform for Intellectual Property Right (IPR) 

3)  Introduction of Seed Funding Programme for Start-ups

4)  Allocation of Rs. 8,000 crores to promote Quantum Technology related activities 

5)  Deferment of TDS/Income Tax on ESOP Exercise by 5 years subject to other terms 

6)  Tax Audit limit increased from Rs. 1 crore to Rs. 5 crores with conditions 

7)  Change in rules related to loss carryforwards in case of mergers 

8)  Income tax exemption to start-ups extended up to 3 years out of 10 years 

9)  Turnover limit for tax exemption for start-ups raised form Rs. 25 crores to Rs. 100 crore to include large start-ups as well

10)  Reduced Income Tax Rate of 15% to extend to Power companies as well 

11)  A single window clearance under National Logistic Policy for e-logistics players

12)  Creation of a Tax Payer Charter to stop harassment of taxpayers 

13)  To decriminalize some norm violations under Companies Act/ Income Tax Act 

14)  Introduction of subordinate debt for MSMEs

15)  Introduction of Faceless Appeals under Income Tax (earlier only Faceless scrutiny was applicable)

16)  Abolition of Dividend Distribution Tax

17)  Tax Exemption to investments by Sovereign funds into Infrastructure segment 

18)  Waiving interest and penalties on Income tax disputes if the amount is paid by March 31, 2020, June 2020

19)  Enhancing the footprint of the Warehousing facilities across the country including PPP model 

20)  Introduction of NIRVIK Insurance scheme to boost export