Union Budget 2020 Analysis by CA S. S. Nayak
An analysis of the Union Budget was presented by Mr S. S. Nayak on Friday February 7, 2020 at Swarna Hall. The Union Budget for the Fiscal Year was presented by the Finance Minister Ms Nirmala Sitharaman of Saturday February 1, 2020 in the Lok Sabha.
CA S.S. Nayak is a Practising Chartered Accountant in Mangalore for the last 31 years. He completed his CA Articleship from C Agarwal and Co, Mumbai and LLB(Gen) from Mumbai University. Mr. Nayak is an active member of various professional bodies and has delivered numerous expert talks in national as well as international forums. He was an invited speaker at the Muscat Chapter of the Institute of Chartered Accountants of India on topics of FDI and NRI Taxation. He was also an invited speaker in world famous “AKKA” Sammelana in 2018 held in Dallas, USA.
Mr. Nayak is continuously delivering lectures on “Analysis of Union Budgets” in various forums for the last 2 decades. He is regularly featured in Namma Kudla 24*7 Channel “Business Tonic”, a popular programme for Entrepreneurs on Finance, Taxation, Property and other business matters. His expert views on the topics have been well received across sections of society. He is an active member of many social/professional organizations. He regularly writes columns on Tax and Financial matters in newspapers and magazines. He is also the author of "Words of the Wise" and "More Words of the Wise".
Mr.Nayak has mentored thousands of MSMEs in the region and has been bestowed with "NITTE-KBL LIFETIME ACHIEVEMENT AWARD 2018" for his immense contribution for growth & development of MSMEs at the Nitte-KBL MSME Conclave held at Mangalore in November 2018.
He has also been awarded the "Life Time Achievement Award for mentoring thousands of MSME start ups" at the BCCI-HDFC Bank MSME Conclave held at Mumbai in March 2019.
He was awarded the "Samaja Ratna Award" at Rajangana Shri Krishna Temple, Udupi in May 2019 for his immense contribution to the society.
Mr SS Nayak began by explaining the salient features of a union budget and the changes in India’s Budget since 2017. He stated that the date for presenting the Budget advanced from March to early February, to allow for discussion on the bill. He also stated that since 2017, the Railway budget has been incorporated with the Union Budget. He also stated that GST is governed by the GST commission and falls outside the purview of the Union Budget.
Commenting on the features of the Union Budget 2020, he stated that Agriculture, Start ups and MSME sectors have been the main focus, with revisions made to various benefits. Another significant change is the modification in the tax slab for Income tax, and the option of selecting the preferred tax scheme. One point to be noted is that where the assessee opts for the lower tax bracket, he forgoes essential deductions such as HRA, LTA etc. there has also been a change in the criteria for determining Ordinarily Resident in India. This is to ensure all Indians, whether resident or NRI pay tax, either in India, or elsewhere. Other features of the Budget include the change in exemptions to real estate and housing, abolition of Dividend Deduction Tax, auditing and filing of returns by Individual, Partnership firms and HUF, capital gains tax, and education. A new scheme introduced by the ministry involves local corporations and municipal bodies hiring fresh engineering graduates for a one year internship program.
Mr SS Nayak opined that the present government is aimed at increasing spending and consumption to give a boost to the economy, rather than savings. This is depicted in the removal of many standard deductions enjoyed in the past.