Budget 2020: Rs 103 trillion infrastructure projects launched under NIP

Presenting the Union Budget in Parliament, Sitharaman said Rs 1.7 trillion has been provided for transport infrastructure in 2020-21

To augment India’s infrastructure and create jobs, the government has launched Rs 103 trillion infra projects besides providing about Rs 1.70 trillion for transport infrastructure and accelerating highways construction, Finance Minister Nirmala Sitharaman said on Saturday.

Presenting the Union Budget 2020-21 in Parliament, Sitharaman said focus is on infrastructure for economic development and 6,500 projects across sectors under National Infrastructure Pipeline (NIP) envisions ease of living for citizens. “In his Independence Day speech 2019, Prime Minister had highlighted that Rs 100 trillion would be invested on infrastructure over the next 5 years. As a follow-up measure, I had launched the NIP on December 31, 2019 of Rs 103 trillion. It consists of more than 6500 projects across sectors and are classified as per their size and stage of development,” she said.

About Rs 22,000 crore has already been provided, as support to Infrastructure Pipeline, she added. Terming the budget growth-oriented, Road Transport and Highways Minister Nitin Gadkari said it has given a massive boost to investment in infrastructure, which in turn would help revive industrial production and generate employment opportunities, crating more that 2 crore jobs.

Budget 2020: Govt removes Dividend Distribution Tax on companies

Finance Minister Nirmala Sitharaman while unveiling the Union Budget said the proposal would make India more attractive market for investment

The government on Saturday proposed to remove dividend distribution tax on companies, and henceforth the tax will be shifted to recipients at the applicable rate. Finance Minister Nirmala Sitharaman while unveiling the Union Budget said the proposal would make India more attractive market for investment.

“This is another bold move, which will further make India an attractive destination for investment,” she said, adding it would result in a revenue sacrifice of Rs 25,000 crore per annum. Currently, companies are required to pay dividend distribution tax (DDT) on the dividend paid to its shareholders at the rate of 15 per cent plus applicable surcharge and cess, in addition to the tax payable by the company on its profits.

“In order to increase the attractiveness of the Indian equity market and to provide relief to a large class of investors, I propose to remove the DDT and adopt the classical system of dividend taxation under which the companies would not be required to pay DDT. “The dividend shall be taxed only in the hands of the recipients at their applicable rate,” she said.

The system of levying DDT, she said, results in increased tax burden for investors and especially those who are liable to pay tax less than the rate of DDT, if the dividend is included in their income. Further, non-availability of credit of DDT to most of the foreign investors in their home country results in reduction of rate of return on equity capital for them, she noted…Keep Reading