A day after Finance Minister Nirmala Sitharaman announced the Union Budget for the year 2020-21, NCP leader Majeed Memon on Sunday said that the income tax relief for individual taxpayers in the Budget is just a "lollipop". He also said that the important sector such as automobile was clearly ignored by the government.
Speaking to the media Memon said, "It is some kind of lollipop. It is not a big relief for taxpayers. The provisions in the Budget are too damaging and people will not welcome it. What is shocking is that the automobile sector and unemployment have been totally ignored."
In a major relief for individual taxpayers, Finance Minister Nirmala Sitharaman on Saturday announced a new regime of personal income tax.
Sitharaman while presenting the Budget said, "Under the new personal income tax regime, individual taxpayers to pay tax at a reduced rate of 10 per cent for income between Rs 5 lakh and 7.5 lakh against the current rate of 20 per cent. Those with income between Rs 7.5 lakh to Rs 10 lakh to pay tax at 15 per cent against the current 20 per cent. Those with income between Rs 10 to 12.5 lakh to pay tax at 20 per cent, down from 30 per cent," she added. She further said that tax rates for income between Rs 12.5 lakh to 15 lakh will be 25 per cent, under the new regime.
This year's Budget assumes tremendous significance as the Indian economy is facing multiple challenges such as a rise in inflation, unemployment, farmer distress and a dip in GDP growth. While beginning her Budget speech, the Finance Minister had said that the focus would be on increasing incomes and elevating purchasing power. She had outlined its three themes - 'Aspirational India, Economic Development for all, and that India shall be a caring society.'
The Budgetary session commenced from January 31 with the budget being presented on February 1. The first phase of the session will conclude on February 11, while the second part of the session will begin from March 2 and end on April 3. On January 31, the government presented the economic survey which gave an overview of how the economy fared in 2019. The Indian economy gained a lead ahead of the UK and France to gain the fifth position in terms of GDP by making a 2.3 trillion dollar economy. According to the economic survey 2020, despite a slowdown in the Indian economy, it has managed to stay afloat in the global slowdown, faring better than the BRICS nations such as Brazil, Russia, South Africa and is on par with China.