Live Updates: Union Budget 2020 Expectations For Family

How will the Union Budget affect your Family Budget? Find out in our Live and Exclusive coverage of Union Budget 2020. Scroll below for nonstop coverage.

By Team ParentCircle  • 33 min read

Live Updates: Union Budget 2020 Expectations For Family

At ParentCircle, we have brought together a team of financial experts, Kartik Jhaveri (Director, Transcend Consulting (India) Pvt. Ltd.), Satish Kantheti (Director, Zen Money) and A V Senthil, and senior journalists who will keep you updated with key announcements and takeaways.

Did the Union Budget 2020 meet your expectations? Share with us your thoughts and queries!

Stay tuned for a Live Session with Certified Financial Planner, Dr. A.V.Senthil on "Union Budget 2020 - Review and Planning Family Finances." We go live on 6th February from 5:00 PM - 5:30 PM. Post your doubts and questions here.

Live Updates: Union Budget 2020 Expectations For Family

Click here to read about Union Budget 2020 For Family: Highlights, Key Takeaways

Live Updates: Union Budget 2020 Expectations For Family
Live Updates: Union Budget 2020 Expectations For Family

This is what financial guru, AV Senthil, has to say on the proposed new personal income tax regime.

  • It all depends on the level of income/earnings. Those parents with income between 8L and 10L may opt for the old tax regime with deductions and exemptions and vice versa.
  • For 15L, the new tax regime will come with lower tax outgo, thereby consumption will go up, individual savings will come down.
  • Chartered accountants and personal finance experts will have a bigger role to play in advising their clients!
  • It is also mentioned in the budget speech that 70 out of around 100 exemptions have been removed in the simplified regime and the remaining 30 exemptions would be reviewed in the coming years to further simplify the regime.
  • So in all probability, the existing tax regime would be phased out sooner than later. That's my personal view.

Let’s hear what our expert, Kartik Jhaveri, has to say on the new budget:

1. Close to Rs 100,000 crores has been allocated to education sector, and Study in India is now the centre of focus. How will all this change the education scenario in our country?

  • It is done to motivate students to come and get educated in India.
  • Simultaneously we are trying to build world class institutes in India, but it will take time to materialise and in the interim, the students of Africa & other countries will benefit.

2. Even 70 years after independence, farmer families are struggling to come out of poverty. How successful do you think the finance minister’s plan to double their income will be?

  • The intention is good, but this is happening at a very slow pace.
  • This is essentially targeted for the poor farmers of India and is a must do area for each government.
  • The problem is also as a result of ignorance & literacy of the farmers about the provisions and the facilities available.
  • Leakage & pilferage of benefits is also an issue here.

3. How will the step of empanelling 20,000 hospitals in Ayushman Bharat scheme affect the average Indian family health needs?

  • It is simply empowering the Ayushman Bharat Scheme and just the way private insurance works.
  • For effective administration of benefits, such empanelment is a must.

4. Will the step to sell off a part of LIC through an Initial Public Offering make buying insurance from LIC risky or competitive?

  • It doesn’t matter because the private insurance sector is generally serving upwardly mobile & urban areas.
  • This scheme largely serves uninsured population of the society.
  • Therefore, this is not really a conflict.

2:00 p.m. - FM Speaks ParentCircle Delivers:

On that note, it is time for us to sign off. We hope you enjoyed our Live and Exclusive coverage of the Union Budget 2020 as much as we enjoyed bringing it to you. Do share your feedback on the coverage and how we can get better going forward. Write to us at

Next up from Team ParentCircle is the next big thing - #KeepCalmExamOn, our big exam special. Join ParentCircle in the Festival of Exams as we help you and your child sail through the exam season without STRESS. Tips from toppers, Expert views, Dos and Don’ts, Time management ideas and what not. All Feb only here. #KeepCalmExamOn!

1:45 p.m. - FM Speaks ParentCircle Delivers:

So, there we go! We heard from the Finance Minister. She started tiring towards the end of the speech. It was a very long Budget speech. It is, by far, the longest Budget speech in many years. The last one to last more than 2 hours was that of Arun Jaitley in 2014 when it lasted 2 hours, 17 minutes. Put this in comparison with the maiden budget in 1947 by the then Finance Minister, RK Shanmukham Chetty, which lasted a mere 39 paragraphs.

While analysts are calling this a ‘not-so-dream-budget’, there are some important takeaways for families from this Budget and we will soon be recapping the same in our article Top Takeaways for Families from Union Budget 2020. We will also be mailing you the new tax scenarios. To receive this first in your Inbox, sign up now. Here’s the link:

1:35 p.m. - FM Speaks ParentCircle Delivers:

Vivad se Vishwas (No dispute, but trust scheme). IT Act to be amended to introduce faceless appeals. The new amendment should reduce litigations that have hit 4.83 lakh cases

1:25 p.m. - FM Speaks ParentCircle Delivers:

  • To boost affordable housing, exemption on interest paid on loans to buy affordable homes, sanctioned on/before March 31 2020, now extended to loans sanctioned to avail this benefit by one more year (March 31, 2021)

1:15 p.m. - FM Speaks ParentCircle Delivers:

  • 70 of more than 100 deductions and exemptions removed. Goal is to lower tax rates further
  • Dividend distribution tax abolished

1:10 p.m. - FM Speaks ParentCircle Delivers:

  • BIG BREAKING – Individual Income Tax rates slashed
  • New individual tax regime with significant reduction
  • A person earning Rs 15 lakhs per annum (and not availing any deductions) will pay Rs 1,93,000 compared to Rs 2.7 lakhs
  • New tax regime optional for tax payers 

New rates: 

  • 10% for income Rs 5 lakhs to 7.5 lakhs against prevailing 20%
  • 15% for income Rs 7.5 lakhs to 10 lakhs against prevailing 20%
  • 20% for income Rs 10 lakhs to 12.5 lakhs against prevailing 30%
  • 25% for income Rs 12.5 lakhs to 15 lakhs against prevailing 30%
  • No change for incomes above Rs 15 lakhs

Scenarios will be presented soon. Stay tuned  

1:00 p.m. - FM Speaks ParentCircle Delivers:

  • Nominal GDP to grow in FY 20-21 at 10%
  • Expected tax buoyancy will take time
  • Fiscal deficit pegged at 3.8% this year and 3.5% next year

12:55 p.m. - FM Speaks ParentCircle Delivers:

  • Part of LIC to be divested by government through Initial Public Offering (IPO)

12:50 p.m. - FM Speaks ParentCircle Delivers:

  • NRIs to be allowed to invest in some categories of G-Secs (Government securities)

12:45 p.m. - FM Speaks ParentCircle Delivers:

  • To achieve the goal of $5 trillion economy, a robust financial sector is a must
  • Robust financial mechanism is in place and depositors’ money is absolutely safe. Depositor’s insurance cover increased from Rs 1 lakh to 5 lakhs for each depositor

12:40 p.m. - FM Speaks ParentCircle Delivers:

  • To enshrine a taxpayer Charter in the Statute
  • National Recruitment Agency to be set up as an independent, professional agency to conduct common eligibility test for recruitment to non-gazetted posts 
  • India will host G20 Presidency in 2022

12:35 p.m. - FM Speaks ParentCircle Delivers:

  • Rs 2,500 crore allocated for tourism promotion
  • Task force to be initiated for understanding the right marriageable age for women
  • Large cities with population of over 1 million - clean air is a concern. . The government proposes to encourage states to set up plants for promoting clean air
  • Rs 4,400 allocated for clean air mission for cities

12:25 a.m. - FM Speaks ParentCircle Delivers

  • Rs 35,600 crore for nutritional-related programmes
  • Rs 3,100 crore allocated to Ministry of Culture
  • Indian Institute of Heritage and Conservation with a status of ‘Deemed University’ to be set up
  • 5 archaeological sites to be developed as iconic sites with onsite museums
  • Tribal museum to be set up in Ranchi
  • Maritime museum to be set up near Ahmedabad
  • India has moved up from 65th rank to 34th rank in travel and tourism competitiveness

12:20 p.m. - FM Speaks ParentCircle Delivers:

Beti Bachao Beti Padao has yielded tremendous results. Gross enrolment ratio of girls across the board is now higher than boys. At the elementary level it is 94.8 against 89.5 for boys. The numbers are similar for secondary and higher secondary level. 

12:15 p.m. - FM Speaks ParentCircle Delivers:

  • New economy is based on innovation - AI, 3D design, Data storage, etc. rewriting global economic order
  • ‘Data is the new oil’ - Data centre parks to be developed throughout the country
  • Seed fund to be enhanced for start-ups
  • Quantum technology to be a major thrust area
  • To launch 2 new sciences

12:10 p.m. - FM Speaks ParentCircle Delivers:

  • National Infrastructure thrust with allocation of Rs 103 lakh crore and includes 6500 projects
  • Accelerated development of highways – Delhi-Mumbai expressway and Chennai-Bengaluru expressway to be started
  • 2000km of coastal road to be developed
  • Large solar power capacity along the rail lines
  • More ‘Tejas’ type trains to connect iconic tourist destinations
  • 148-km Bengaluru suburban rail project to be developed along the metro model, with a spend of Rs 18,600 crore and under PPP model (Public Private Partnership)
  • ‘Arth Ganga’ a project to develop economic activity along riverbeds
  • 100 new airports to be developed under Udaan scheme

12:05 p.m. - FM Speaks ParentCircle Delivers:

Top highlights so far:

  • ‘Study in India’ mission launched
  • Ind-SAT new exam system
  • Anti-Tuberculosis mission to eliminate TB by 2025
  • Online education thrust
  • Kisan Rail (Farmers’ Train)
  • Rs 12,300 crore additional budget for Swachh Bharat
  • Rs 99,300 crore allocation for Education sector

12:00 p.m. - FM Speaks ParentCircle Delivers

  • Ind-SAT, a new exam, announced for students of Asian and African countries to ‘Study in India’
  • Entrepreneurship has always been the strength of India
  • Boost for manufacture of mobile phones in India.

11:50 a.m. - FM Speaks ParentCircle Delivers:

  • To promote ‘Study in India’ 
  • To opt for Foreign Direct Investment for the education sector
  • Forensic science and cyber forensic science to be thrust areas
  • Rs 99,300 crore to be provided for the Education sector in 2020-21 including Rs 3000 crore for skill development

11:45 a.m. - FM Speaks ParentCircle Delivers: 

  • Focus to be enhanced on solid waste management and source collection. (So, be prepared to segregate if you are not doing it already)
  • By 2030, India set to have the largest working age population in the world
  • 2 lakh suggestions for the new Education Policy received and the new policy will soon be rolled out
  • Students in general stream need their employment opportunities improved 
  • Urban local bodies to provide internship to prospective engineers for one year

11:40 a.m. - FM Speaks ParentCircle Delivers: 

  • Holistic vision of healthcare. 5 new vaccines to be promoted
  • Fit India to be expanded to eliminate lifestyle-related diseases
  • 20000 hospitals empanelled in Ayushman Bharat
  • Hospitals to be set up in PPP mode in tier 2 and 3 cities
  • Machine learning and AI to be used in Ayushman Bharat scheme
  • TB harega Desh Jitega (TB will lose and India will win). The campaign launched aims to eliminate TB from India by 2025. Rs 69K crore provided for healthcare sector

11:35 a.m. - FM Speaks ParentCircle Delivers: 

  • Setting up a Kisan Rail (farmer’s train) for transporting perishable goods so they can reach the length and breadth of the country to help benefit farmers immensely
  • Horticulture today exceeds production of food grains in India
  • High focus at the district level for horticulture
  • Online national organic Foods market to be strengthened
  • Measures to eliminate 'Foot and Mouth' disease by 2025
  • Fish production to be raised to 200 lakh tonnes
  • Milk processing capacity to be doubled from the present 53.5 tonnes to 108 tonnes

11:30 a.m. - FM Speaks ParentCircle Delivers: 

Laying down 16 points for enhancing farmers’ sustainable income. Discouraging the excessive use of chemical fertilisers.

11:25 a.m. - FM Speaks ParentCircle Delivers: 

  • Mera watan, Tera watan, Hamara watan, Duniya ka sabse pyara watan (My nation, your nation, our nation, world’s most-loved nation). Committed to doubling farmers’ income by 2022. 
  • Prosperity to farmers can be done by making farming competitive and making farm markets liberalised.

11:20 a.m. - FM Speaks ParentCircle Delivers: 

We want to take our growth to the next level by focussing on health, prosperity and well-being.

This budget is woven around 3 major elements:

  • Aspirational India (health education and better jobs)
  • Economic development (for all)
  • Caring Society (both humane and compassionate) 

11:15 a.m. - FM Speaks ParentCircle Delivers: 

  • We have added 16 lakh new taxpayers since the introduction of GST. 
  • Digital penetration through broadband and UPI one of the big milestones in recent times. 
  • During 2014-2019, we have clocked an average of 7.2% growth with inflation at 4.5%. We are now the 5th largest economy in the world. 

11:10 a.m. - FM speaks: This vibrant India shall be caring to the society buoyed by fundamental structural reform and inclusive growth. GST has been the most historic structural reform in our history. I pay homage to the visionary leader, Shri Arun Jaitley. Turnaround time for trucks has improved by 20% due to abolishment of checkposts following the introduction of GST. An average household now saves 4% of monthly spends on account of GST.

What are your thoughts and reactions on the Union Budget 2020?

11:05 a.m. - Lok Sabha Speaker, Om Birla calling the House to Order. FM begins by presenting the report of the 15th Finance Commission. Naye Dashak ka pehla Budget, says Om Birla. The budget for the new era. Let’s hope it has plenty in it for the families. 

11:00 a.m. – And on that note, FM Speaks ParentCircle Delivers is here. The most awaited, Budget of recent times is about to be presented. We are embedding the Live Video link so you can watch the presentation and gain valuable insights by scrolling below. Two-in-one benefits for you to stay on’s non-stop coverage.

10:50 a.m. – Alright, inside the last 10 minutes and a quick check on what the pulse is like. Here’s what parents want from this budget:

Live Updates: Union Budget 2020 Expectations For Family
Live Updates: Union Budget 2020 Expectations For Family

It’s your budget and your voice matters. Here’s how you can actively take part in our Budget discussion. Please get your friends to join in too. 

10:40 a.m. – 20 minutes to go and check out the dream team that has worked on the most discussed Union Budget in decades.

Live Updates: Union Budget 2020 Expectations For Family

Well, will it also be a ‘Dream Budget’? Will it spur spending, saving and investment at an individual level? What’s your mantra, Mommy? Are you a Money Smart Mommy? Here’s our second article of the series, Money Smart Mommies and this one focuses on spending and saving. Enjoy the read

When earnings remain stable and expenses are on an upward swing, having a spending plan helps. Here's how to make one.

10.30 a.m. – The final countdown begins and as we wait, trivia time:

  1. Even as Nirmala Sitharaman waits to present her Budget, who was the first woman to have presented the Union Budget in India?
  2. Which is the traditional ceremony to mark the beginning of the final stages of Budget presentation?
  3. Who was instrumental in changing the Budget presentation time from 5 pm to 11 am?

Clue: If you have been reading the blog well, the answers are a cakewalk. 

10:10 a.m. – Those are some serious lessons on Financial management. It becomes all the more important to follow financial discipline on the day of the Union Budget, if you are a stock market investor/trader. A quick check on how the stock markets are faring this morning ahead of the Budget.

Live Updates: Union Budget 2020 Expectations For Family

It seems to be watchful at this point of time. Yeah, markets are open despite it being a Saturday as Union Budget is a big event and can lead to massive moves in either direction. So, for all you Bulls and Bears out there, good luck and be watchful. Time to check on Parent expectations. Joining us is our Financial Guru, AV Senthil:

10:00 a.m. - Alright, just one hour left for the Finance Minister to present the Union Budget and as we wait to find out what’s in it for you, let me also quickly tell you about another interesting event we are kickstarting on ParentCircle on Monday – Our brand new series #KeepCalmExamOn. Join ParentCircle in the Festival of Exams as we help you and your child sail through the exam season without STRESS. Tips from toppers, Expert views, Dos and Don’ts, Time management ideas and what not. All Feb only here. #KeepCalmExamOn!

For the moment, we turn our attention back to the Union Budget and in under one hour, our FM will be tabling the same in the parliament. As we wait to understand, here’s a special article for all ‘Money smart mommies’ that talks about the importance of financial management.

Are you a working mom? Then here's what you must know about financial management.

One of our experts, Kartik Jhaveri, opines

I don't think we can expect any major cuts in the income tax slab rates 

9:50 a.m. - Some interesting terms you should know about and watch out for in this year’s budget

Traditional Halwa ceremony

The budget process always begins with the traditional ‘Halwa’ ceremony. This ceremony marks the completion of the printing of key budgetary documents. Delicious Halwa is prepared and eaten as a token of a new beginning. On a serious note, this ceremony marks the beginning of complete secrecy. The staff who worked on the printing of the documents are ‘quarantined’ and asked to stay in the North Block office till the presentation of the Budget. This is done to avoid disclosure of any information as such leakages can have large-scale ramifications for the economy and markets. Other interesting elements you should know before watching today’s budget:

Gross Domestic Product (GDP): Refers to the market value of all officially recognised final goods and services produced within a country in a given period.

Income tax: Income of individuals from various sources like salary, investments and interest.

Direct tax: Income tax, corporate tax and inheritance tax — levied on the income of individuals or organisations.

Disinvestment: The process of government reducing its stake in organisations held by them, by selling the same to private organisations.

MGNREGA: Mahatma Gandhi National Rural Employment Act is a law that guarantees ‘Right to Work’. This act aims at “enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every household whose adult members volunteer to do unskilled manual work.”

9:40 a.m. – As we wait for the ‘Make or Break’ budget, we travel down the memory lane. Ever wondered when the first Union Budget was presented in India? We look at some ‘fun facts’ related to Budget now

Fun fact 1 – Did you know that the word budget originated from a satchel (a bag that’s carried on the shoulder)? That satchel has ‘travelled’ through the years to now become a financial statement of the government and in many ways, that of a nation.

Fun fact 2 – India’s first full budget was presented by the then Finance Minister, RK Shanmukham Chetty in February 1948.

Fun fact 3 – Personal Tax rates in the first Union Budget presented in 1948

For income

< Rs 1500 per annum – nil

Rs 1501 to 5000 – 12.5%

Rs 15001 and above – 33%

Fun fact 4 – Till the millennium year (2000), the Union Budget was presented at 5 pm, which was in line with the British system. It was the then Prime Minister, Atal Bihari Vajpayee, who changed it to 11 am and we have remained there since.

We have with us Dr A V Senthil, Financial expert, sharing his thoughts on what personal tax rates parents can expect in this Union Budget 2020.

9:30 a.m. - So, how will the Union Budget affect your #FamilyBudget? From personal taxes to affordable housing to cheaper loans, the expectations are sky high.

Live Updates: Union Budget 2020 Expectations For Family

9:20 a.m. - Even as we wait with bated breath, let’s quickly recap what was in it for you last year when the FM presented her full budget in July. Yes, last year’s full budget was presented in July because we had the Lok Sabha elections during the summer. During poll years, as per the Election Commission directive, incumbents are not permitted to present a full budget in February, which is why we had two budgets last year. Interim Budget in February and Full Budget in July. We now look at what the full budget of 2019 had for you:

9:10 a.m. - Why is this the most watched Union Budget in recent times? Over the last few months and maybe years, there has been considerable economic slowdown with many financial indicators certainly pointing to one. GDP has slipped below 5% in the last quarter, and for the full year, is expected to be just over 5%, which is a multi-year low. Car sales, which is one of the key barometers of economic activity, has plummeted in recent times. The overarching feeling is that the consumer is not spending and that, in turn, is because there isn’t enough disposable income, which, in turn, is in part because of the high personal tax rates. Vicious cycle, indeed. 

So, as you see, it is a bigger issue for the FM to address. Even as we prepare for the FM to table the Budget in the parliament today, there are expectations that this will be one of the major ‘reform budgets in recent times’. Can Nirmala do what Manmohan Singh, the ‘1991 Budget Hero’ did? We will know. Yes, we will know soon. We are not too far away from that moment. As we wait, we also tried understanding the pulse and therefore, ran a poll in which most of you actively took part. Let’s find out what the results and reactions from that poll were like.

Will the Indian Union Budget 2020 be in favour of the Indian Family?

Live Updates: Union Budget 2020 Expectations For Family

9:00 a.m. - We are just into 2020 and we’re already staring at one of the biggest days of the year. All eyes on our Finance Minister to see if she will play a great T20 knock to lift the sagging Indian economy out of the woods. We will know over the next three to four hours. Hello and welcome to our nonstop Live coverage of Union Budget 2020FM Speaks ParentCircle Delivers. How will the Union Budget 2020 affect your #FamilyBudget? Find out as we provide a simple coverage with news, views and analysis exclusively for families in India.

Live Updates: Union Budget 2020 Expectations For Family

Satish Kantheti talks about the ban on Chinese toys—

I think if there are issues like quality of plastic or ingredients, there shouldn’t be a negative impact in the long run, because you are trying to improve the quality of products that you are importing. So, that shouldn’t be negative; and given the coronavirus outbreak in China, I think it is even more risky. I don’t think it would have a negative impact in the long run, especially if they take into account health and product-quality related issues for deciding on the Chinese toys used by kids. 

Do you think this family would get more for their money after Budget 2020?

Live Updates: Union Budget 2020 Expectations For Family

This is what Satish Kantheti has to say about the impact the budget can have on the current inflation trends and in the revival of the economic slowdown —

The budget will be a bit inflationary, or it has to be, rather. Basically, it’s tough to maintain fiscal deficit as revenues have decreased, tax collection has decreased because growth has been slow. Once the fiscal deficit increases, if the government wants to revive the economy, it needs to spend more because private companies have not been investing that much. So, the aim of the government would be to revive the economy though it could be inflationary in the near term, whenever the fiscal deficit goes up. However, once the economy recovers, I think they can step back. 

As far as tax holiday, Satish Kantheti opines —

Tax holiday they might go for, but I think the government needs to give more incentives for tax or tax advantages, or other incentives for individuals on home loans because there is a slowdown in real estate across India. I think to give stimulus to the real estate industry, the government might give additional incentives. So, let’s see how that might shape up. But, there is a chance that the government might try to do something with the home loan or rather housing-related incentives for individuals who want to buy homes. So, we need to see if there is enough scope in the budget to do it, but there is a need to do it. Relief not only from an individual’s perspective but also from the real estate perspective. 

Let's hear from two experts on whether we can expect any reduction in capital gains tax —

Satish Kantheti says 

The market anticipates that the capital gains tax will be cut even though the period can be extended for long term. As of now, it is one year, but what the market anticipates is that it can be extended to two years and made zero. If this happens, I think that will incentivise investors, individuals and families who are investing in the equity market because their gains will not be taxed if they keep it for long term. This will be positive both for the stock market and the families who have been investing directly or indirectly through mutual funds or other means. The government does not derive significant revenues out of the long-term capital gains and wants to divest companies. To do that, they want the market to be relatively stable. Hence to incentivise investors, there is a high likelihood that capital incentives would be announced in this budget. 

Whereas Kartik Jhaveri opines 

There is not much to expect regarding capital gains tax reduction in this budget. 

Wondering what impact the budget will have on the family’s savings? 

Satish Kantheti thinks —

Savings can improve a bit, especially if there is a cut in tax rate or incentives are given in housing or capital gains. To that extent, savings of individuals can increase and that could be the immediate impact.  

Kartik Jhaveri suggests that —

The tax burden is huge with GST. Hence, the government should either provide set-off or reduce the income tax significantly. There is just no savings. If the middle class cannot save, then capital formation cannot happen. Tax incentives are the only way the common man can save some money. Therefore, the government should think of expanding tax deductions and motivating people to save more. Government needs to roll out a big push for infrastructure, and therefore bring about infrastructure and other bonds in circulation. People get a good high coupon rate and the government gets money. It is high time that the government thought of providing certain health benefits and other incentives to taxpayers. 

Our children need to begin learning from a young age about money to be good at managing money. Here’s how you can raise money-smart children.

Live Updates: Union Budget 2020 Expectations For Family

About the budget being family friendly, Satish Kantheti says —

The budget could be somewhat family-friendly because currently there are two issues. First, investments are weak as not many companies are investing. Second, the demand side is also weak. So, to push demand or consumption, the government may try to incentivise like the way they cut corporate tax. This time, they can do something with the income tax. There is a direct tax code that the government is planning to implement, wherein they want to simplify the tax structure. In that context, the government may be looking at giving some tax sops to boost the demand coming from individuals and families. 

For the salaried class, investing their hard-earned money in schemes that guarantee good income and security is important. Read on to know the various investment options and how to create an investment portfolio.

Will there be a change in the tax laws to provide the common man with more money to spend?

Live Updates: Union Budget 2020 Expectations For Family

Satish Kantheti on income tax

A cut in income tax slab rates is what everybody is hoping because, on the supply side, in September, the Finance Minister had announced corporate tax cut to incentivise companies to invest more and create more jobs. From the demand side, the budget is a good avenue to cut personal tax, to incentivise people to consume more because they will have more money in their wallet. So, I think there would be some cut, but in what slab and how much would depend on how much leeway the government would have due to the revenue shortfall. — Satish Kantheti

Expectations met by the Union Budget 2020 will have an impact on your wallet. To know what your wallet size is going to be in the financial year 2020–21, be with us on the day of presentation of the Union Budget.

Live Updates: Union Budget 2020 Expectations For Family

Will there be enough money left in the common man's wallet? Let's hear from Satish —

Because I don’t see any significant increase in tax, I don’t think the budget would affect the common man in a negative way. The budget would try to revive the economy which, in turn, would create more jobs. So, in that context, I think budget might not directly, apart from the personal taxation point of view, put a very high amount of money in the common man’s wallet. However, with some tweaking in the tax structure, there is scope for some amount of relief. That is what everyone wants, and the common man would buy more if there is more money in his wallet. So, that is what the government may intend to do, but the scope to give away more is not there as revenues are also low. 

We asked Kartik Jhaveri, "If you were in the finance minister’s shoes, what would you focus on for Budget 2020 keeping families in mind?" And, this is what he said:

The focus of my budget would be on economic development. Specifically,
Promote tourism, smart cities and entertainment, so that more infrastructure is created resulting in higher job creation.
Divest all government assets aggressively to raise capital for funding infrastructure and other projects.
Promote removal of bureaucracy and red tape for development of backward and rural areas.
Promote projects so that the urban people invest in rural development.
Provide safety and security.
Provide an environment where the urban sector starts investing into agriculture, manufacturing, and 'make in India' projects.

I don't think we can expect any major cuts in the income tax slab rates — Kartik Jhaveri

Dr AV Senthil is currently working at Metis Family Office and heads Wealth Advisory and Mentoring services. He works closely with clients to build, manage and protect wealth effectively and efficiently. He brings in a comprehensive value-add for various components of wealth (real estate, liquid assets, REITs, gold etc.), in terms of analysing their current portfolios, managing their existing set of investment advisors, developing a comprehensive MIS, review mechanisms and drafting investment policies.

Satish Kantheti has an MBA in finance and is a CFA (chartered financial analyst) as well. With an experience of nearly 19 years, he is actively involved in investor education initiatives. 

Kartik Jhaveri is the Founder-Director of Transcend Consulting (India) Pvt. Ltd. He heads the Financial planning and Wealth management consulting practice of the company.

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