Budget 2020: The countdown to Budget (#BUDGET2020ZEE) day has started and expectations of various sops for everyone have risen tremendously. It is not just the salaried class that is expecting major tax relief, but various sections, including the corporate world, are expecting a lot of relief from FM Nirmala Sitharaman. We give you a peek into the same here:

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NPS Exemption

Good news may come for salaried classes as Finance ministry is reportedly planning to double the limit of tax free contribution under National Pension Scheme from Rs 50,000 to Rs 1 lakh per annum. The relief in NPS was suggested by the Pension Fund Regulatory and Development Authority, which is the pension sector regulator. The aim behind this is to boost public savings into pension plans. 

 

Tax relief for an individual earning over 10 lakh

Pressure has also been built up to provide income tax relief, at least for those that fall under the lower and mid-level slabs. The Federation of Indian Chambers of Commerce & Industry wants tax cuts for individuals earning over 10 lakh. Presently, an  individual earning over Rs 10 lakh per annum needs to pay 30 percent tax rate. This aims to make income tax rates compatible with the international standards.

 

Telecom sector

This troubled sector has demanded a reduction in levies which includes license fees and spectrum usage charges including bank funding at lower interest rates. Operators are also demanding the abolition of custom duties for 4G/5G related network products and termination of collection of universal services obligation fund fee temporarily.

 

FDI in aviation sector

Centre may well be looking forward to announce a hike in the foreign direct investment limit in the aviation sector from 49 per cent to 100 per cent, according to reports. The aim behind this is to attract international bids for Air India, slated for sale this financial year. The reason behind this FDI hike because the current cap is not attractive enough for investors.

 

Boost to Infra Sector
According to key infra players, Budget 2020 should focus on making in-depth infra policies and provide some exemptions from cross-subsidies and transmission charges in order to boost the sector.