The Union Budget 2020-21 has been a budget with long-term vision woven
around three themes – Aspirational India, Economic
development and Caring Society. The Union Budget has
laid special emphasis on Agriculture laying down 16 action points for the
improvement of agriculture in the country.
The Budget has laid down a foundation for improvement in employment
opportunities and has announced the setting-up of National Recruitment Agency
(NRA) as an independent, professional, specialist organisation for conduct of a
computer-based online Common Eligibility Test for recruitment to Non-Gazetted
posts. The Union Budget has also committed to provide relief to the MSME’s by
way of extending invoice financing through NBFC’s, app-based invoice financing
and addressing working capital issues through subordinate debt to be provided
by banks which would count as quasi-equity and would be fully guaranteed
through the CGTMSE. The Union Budget has set the tone for strategic
disinvestment of LIC, the funds of which would necessarily be used for
long-term infrastructure development. The direct tax proposals have provided
for a new optional tax regime for individuals. The Corporate tax rates already
reduced during the mid of last year to 15% or 22% for selected classes of
companies, the scrapping of Dividend Distribution Tax (DDT) has been a morale
booster for the companies. The Union Budget dreams of a cash-less business
model and therefore has provided that for assessees having only nominal cash
transactions (less than 5%) would NOT be required to get accounts audited for
turnover upto Rs.5 Crores. As a tax payer friendly measure, Tax Payer’s charter
has been proposed to be introduced.
In short, this Union Budget 2020-21
can be said to be budget aiming towards hassle free tax administration using
Artificial Intelligence, digital techniques and equally laying increased
emphasis towards agriculture and job creation
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