Live BlogUnion Budget 2020 Live Updates: Income Tax Rates Slashed

The Finance Minister today announced a change in the personal income tax rates, that is likely to boost the net take home pay of salary earners. This will be depending on the exemptions and deductions being availed under the old regime.


Keep tracking this page for live updates.

Union Budget 2020 Live Updates: Income Tax Rates Slashed
1:34 PM
Feb 1, 2020
Sensex sinks 600 points
The initial reaction of the markets is a big thumbs down. It looks like the markets do not like the fact that Long Term Capital Gains has not been abolished.
1:23 PM
Feb 1, 2020
Companies not to pay dividend distribution tax
Companies would no longer need to pay dividend distribution tax. The tax would now have to be paid by the individual tax payer at his income tax rates.
1:18 PM
Feb 1, 2020
Personal income tax
Personal income tax rates reduced significantly. Those earning up-to Rs 5 lakhs- No tax. Rs 5-7.5 lakhs: Tax rate reduced to 10% Rs 7.5- 10 lakhs: Tax rate reduced to 15% Rs 10-12.5 lakhs: Tax rate cut to 20% Rs 12.5-15 lakhs: Tax rate cut to 25%
1:01 PM
Feb 1, 2020
Fiscal deficit for 2019-20 estimated at 3.8%
The much awaited fiscal deficit number for 2019-20 has been placed at 3.8%. The number for 2020-21 has been placed at 3.5%.
12:54 PM
Feb 1, 2020
Markets are seeing a sell-off
Indian indices are seeing a sharp sell-off with the Sensex down 150 points.
12:51 PM
Feb 1, 2020
Safety of bank deposits
Deposit insurance for depositors has increased to Rs 5 lakh from Rs 1 lakh. This means deposits upto Rs 5 lakhs are insured and safe.
12:46 PM
Feb 1, 2020
The holding of the govt holding in IDBI Bank would be sold to financial institutions through the stock market. IDBI stock up 12 per cent.
12:34 PM
Feb 1, 2020
Tax payers charter, part of statute
The Finance Minister says that a tax payers charter will be a part of a statute, to avoid tax harassment. "Tax harassment cannot be tolerated".
12:24 PM
Feb 1, 2020
Rs 2,500 crores for tourism
The Finance Minister has allocated Rs 2,500 crores for the tourism industry.
12:20 PM
Feb 1, 2020
Women programmes
Govt allocates Rs 28,600 crore for programmes specifically for women
12:19 PM
Feb 1, 2020
Senior citizens
Nirmala Sitharaman announces an enhanced allocation of Rs 9,500 crores for senior citizens.
12:18 PM
Feb 1, 2020
Govt to launch 'village storage scheme' for women in villages to regain 'Dhaanya Lakshmi'.
12:17 PM
Feb 1, 2020
Huge allocation for Nutritional programme
The Finance Minister has allocated Rs 35,600 crores for Nutritional programmes.
12:13 PM
Feb 1, 2020
Rs 22,000 crores for power and renewable energy
The FM said that she proposes to provide 22,000 crore to power and renewable energy sector for FY21.
12:13 PM
Feb 1, 2020
Rs 22,000 crores for power and renewable energy
Propose to provide 22,000 crore to power and renewable energy sector for FY21: FM
12:09 PM
Feb 1, 2020
1,150 trains to be run in PPP mode, also 4 stations to be redeveloped with help of private sector, says Finance Minister.
12:07 PM
Feb 1, 2020
Good news for Bengaluru
Finance Minister has proposed Rs 18,600 crores worth Bengaluru Suburban Transportation projects.
12:04 PM
Feb 1, 2020
Delhi-Mumbai expressway to be completed by 2023.
12:01 PM
Feb 1, 2020
Govt proposes scheme for manufacturing of cell phones, semi conductors and other electronic devices.
12:00 PM
Feb 1, 2020
National Textiles Technical Mission
National Technical Textiles Mission has been allocated Rs 1,480 crore.
11:53 AM
Feb 1, 2020
Investment clearance cell proposed, where free advise and landbank details would be made known.
11:46 AM
Feb 1, 2020
Urban local bodies should give an opportunity to fresh engineers as internship for upto a year.
11:45 AM
Feb 1, 2020
1. New Education Policy to be announced soon. 2. ECB and FDI in education.
11:42 AM
Feb 1, 2020
Swach Bharat Mission
Rs 12,300 crores allocated for Swach Bharat Mission.
11:40 AM
Feb 1, 2020
Krishi Udan to be launched
Krishi UDAN will be launched by Ministry of Civil Aviation on international and national routes, improving value realization in North East and tribal districts.
11:32 AM
Feb 1, 2020
Measures for farmers
Indian railways will set up a 'Kisan rail' through PPP arrangement for perishable goods transport within the country: FM
11:31 AM
Feb 1, 2020
Further measures for farmers
1. Funding for warehousing needs. 2. Village storage scheme is proposed. Good holding capacity for farmers. 3. NABARD to map and geotag warehouses 4. Expand PM Kusum Scheme
11:26 AM
Feb 1, 2020
16 action points for the farmer
"Committed to doubling farmer income", says Nirmala Sitharaman. 16 action points for farmers. 1. Comprehensive measures for 100 water scarce districts. 2. 20 lakh farmers to benefit from standalone solar pumps. 3. Balanced use of all kinds of fertilizers encouraged and steps being taken.
11:17 AM
Feb 1, 2020
Budget focus on three areas
This budget is aimed at aspirational India, caring society and economic development, says the Finance Minister.
11:11 AM
Feb 1, 2020
GST has resulted in gains, says Sitharaman
GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted MSME. Consumers have got a annual benefit of 1 lakh crore rupees by GST.
11:08 AM
Feb 1, 2020
Budget too boost growth, Says Finance Minister
"Budget aims to boost growth and enhance purchasing power, and address aspirations, say FM
11:06 AM
Feb 1, 2020
FM begins speech
"With renewed vigour, under PM's leadership, we commit ourselves to present the people of India with all humility and dedication. People have reposed faith in our economic policy," Nirmala Sitharaman.
11:01 AM
Feb 1, 2020
Sensex up 115 points at 11.00 am
Markets are going into the Budget speech with a sense of optimism. The Sensex is up 115 points, but, may exhibit volatility. Reliance and State Bank of India are leading gainers.
10:57 AM
Feb 1, 2020
Is a recaptalization of banks likely?
We have not been seeing any reports on recapitalization of banks. A lot of the governments resources have been spent on recap of banks. One will have to wait and watch.
10:41 AM
Feb 1, 2020
Sensex marginally higher by 71 points
Benchmark indices are going into the Union Budget on a slightly stronger note. The Sensex is up 71 points in trade, after falling in the last two days.
10:35 AM
Feb 1, 2020
Printed copies of Budget documents arrive
Printed copies of the budget documents arrive in parliament. This is probably the most anticipated Union Budget, in the backdrop of slowing economic growth and mounting fiscal deficit.
10:31 AM
Feb 1, 2020
MSME sector looks for sops
The MSME sector, which has received good benefits in the last few budgets, may look for some more, to boost investment. If there are measures to boost liquidity to the sector, it might spur investment.
10:24 AM
Feb 1, 2020
Markets turn positive
Indian markets are now firmly trading in the positive. Leading the set of gainers are Reliance Industries and State Bank of India, which posted a good set of quarterly numbers. Expect an increased level of volatility in trade today.
10:18 AM
Feb 1, 2020
Expectations from industrialist, Harsh Goenka
My broad directional expectations from Budget 2020: 1. Tax cuts to put money in hands of consumers. 2. Restart job creation cycle. 3. Revive SME sector. 4. Step up exports. 5. Save auto, textlile, infrastructure and finance sectors. 6. Boost government expenditure.
10:14 AM
Feb 1, 2020
No individual tax cuts would be a disappointment
For the last few weeks, individuals, analysts and economists have been hoping for income tax cuts. The thought is that it would help push demand as disposable income is higher. However, some skeptics see that this would benefit only a section of the population only and may not necessarily spur demand.
10:05 AM
Feb 1, 2020
Finance Minister arrives for cabinet meeting
Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur arrive at the Parliament, to attend Cabinet meeting at 10:15 am.
9:59 AM
Feb 1, 2020
PSU stocks under selling pressure
PSU stocks have seen intense selling pressure in the last few days running upto the Union Budget. Stocks like ONGC, Oil India and Coal India are down to 52-week lows. Fundamentally, nothing has changed for these companies and some are offering very good dividend yields. One will have to wait and watch for the divestment target set in the Union Budget.
9:49 AM
Feb 1, 2020
Finance Minister Calls On President
As per tradition, Finance Minister Nirmala Sitharaman has called on President Ram Nath Kovind at Rashtrapati Bhavan before presenting the Union Budget.
9:45 AM
Feb 1, 2020
Sensex rebounds, but, still in the negative
Benchmark indices staged some recovery from the day's opening levels. The Sensex, which had opened as much as 220 points lower, is now down only 6 points in trade. Expect more volatility in the next few hours.
9:34 AM
Feb 1, 2020
Global rating agencies to watch for the fiscal deficit numbers
Global rating agencies, analysts and economists would watch for the fiscal deficit numbers for 2019-20 and projections for 2020-21. In all probability we would see the fiscal deficit number for 2019-20 estimated at 3.6 per cent to 3.8 per cent.
9:28 AM
Feb 1, 2020
Real estate sector looks for scrapping of Long term Capital Gains Tax
The one sector that needs an urgent revival is the real estate sector. There are hopes that Finance Minister, Nirmala Sitharaman will do away with the Long Term Capital Gains Tax on sale of property.
9:17 AM
Feb 1, 2020
Stock markets trade lower ahead of Union Budget
Indian markets were trading lower ahead of the Union Budget to be presented at 11.00 am. Foreign Portfolio Investors sold a large amount of stocks in the cash market on Friday. If the trend of selling continues markets might slip below the 40,000 points mark today.
9:00 AM
Feb 1, 2020
Finance Minister Arrives at the Ministry
Finance Minister, Nirmala Sitharaman has arrived at the Finance Ministry. She is slated to present the Union Budget at 11.00 am. This would be one of the most difficult budgets to balance. It comes at a time when economic growth has slowed considerably and fiscal deficit is rising.
8:52 AM
Feb 1, 2020
Will 80C limits be enhanced?
Taxpayers are looking at the government enhancing the Sec80C limit from the present limit of Rs 1.5 lakhs. It would be good if the same is enhanced to Rs 2 lakhs, as it would help promote savings. Whether that would happen, we would know in the next few hours.
8:43 AM
Feb 1, 2020
Agricultural sector may get a boost
The government may enhance the outlay to the agricultural sector to ensure a boost to rural income and rural demand. This is one area that needs an urgent attention. In the past too there have been giveaways.
8:31 AM
Feb 1, 2020
Stock markets to trade today
The BSE and the NSE would be open for live trading today, though it is a Saturday. The trade timings would be the usual 9.15 am to 3.30 pm. A lot of volatility is expected ahead of the Union Budget. A lot of stocks are slated to be in action, especially some of the consumer names.
8:12 AM
Feb 1, 2020
Fiscal deficit number to be keenly watched
The one number that would be keenly watched is the fiscal deficit number. It is widely expected that the number would be in the range of 3.6 per cent to 3.8 per cent for 2019-20 and about 3.4 per of GDP (projected) for 2020-21.
7:59 AM
Feb 1, 2020
Investors looking for cut in DDT, LTCG
Investors are looking for a cut in the dividend distribution tax and the long term capital gains tax. Analysts say that the loss in revenue would not be too much, while it could boost investor sentiment.
7:48 AM
Feb 1, 2020
Stock markets may open lower
Benchmark indices are expected to open a tad bit lower, on weak global cues. The US markets closed the day with losses as worries over the Coronavirus spreading gained ground.

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