Hello friends, I am Jagdeep Singh. I welcome you to Groww channel.
As you whenever there an event, we make a video on it.
So that we can learn what implication the event will have on us as retail investors
So if i talk about the budget not just as a retail investor but also as an Indian citizen
Budget is a very important event
It can affect us in many ways. So today we've brought this video out: Decoding Budget 2020.
In this we will be explaining in detailed yet simple terms
And see what came out in today's budget
And how this budget impacts you as a common man, retail investor, and Indian citizen
And you'll know what vision India has as a country
And what steps the government is going to take for that
Whenever the topic of budget comes up the biggest confusion is how to understand the budget
Because the budget is very big, there are a lot of things in it
Which impacts us in different ways
So today to simplify this video, the discussion that we are going to do
We will do that in five headers
Which means that we will divide the entire budget in five topics
And we will discuss in detail about each topic
And on that we will tell you the implications about how that impacts you
The first topic of discussion is tax
Because about tax we are very interested to know
What were the changes with tax this time?
The second topic will be share market
That in today's budget what were the discussions related to the share market
And how does that share market impact investors
And after that there will be three more topics
About which Nirmala Sitharaman told us in a lot of detail and even she divided it in three topics
If I talk about the third topic then that will be economic development
What were the targets set with economic development and what were the decisions taken related to that
The fourth topic will be
What are the steps the government is planning on taking related to aspirational development
And the fifth topic will be, what Nirmala Sitharaman spoke about
How India will develop itself as a caring nation
Let us first talk about tax
If I talk about tax then Einstein once said
That everything is easy to understand in the world but understanding tax is very difficult
If I talk about this in more detail
If I talk about the current tax regime in India, if you want to take tax exemption
There were more than 100 ways of doing that
And we never understood how to take the deduction
Because of which we had to go to professionals
And the entire tax system was very complex
So to simplify that, the government has paid a lot of attention
And brought about a new tax regime according to which
Tax filing is going to simplified
Let us talk in detail about what the tax was first
And now how much tax do you have to pay
So to understand tax we will talk in number and relate that to our income
That on your income, how much tax did you pay before and how much do you have to pay now
I will show you a screen in which I will explain to you step by step
What are the differences in the old and new tax regime
And how much tax benefit can you have
As you can see on my screen that I have divided the income in six levels
First, income less that five lakhs
5-7.5
7.5-10
Doing this, we have divided it in six steps
And in the two columns you can see, firstly
How much tax you had to give before
And in the new regime how much tax you will have to pay
So first if I talk about if your income is less than 5 lakhs
Then before also you did not have to pay any tax
And even now you don't have to pay any tax
If we talk about 5-7.5 lakhs
First you had to pay tax of 20%
Which has decreased now to become 10%
If we talk about 7.5-10 lakhs
Where the tax was 20%, it has now reduced to become 15%
So if we talk about 10-12.5, then there the tax has reduced from 30% to 20%
If we talk about 12.5-15 lakhs even there the tax has reduced from 30% to 25%
But if someone's income is more than 15 lakhs
They will still be charged a 30% tax
Which even before was 30%
So if you are still confused I will give you another data point and explain to you how the tax benefit will happen
Consider that your income was 15 lakhs
So in the previous tax regime
That used to be around 2 lakhs 70 thousand
But if I talk about the new tax regime
That has reduced to become around 1.95 lakhs
So here you get a tax benefit of around 70,000 rupees
Which is a very good benefit
Here you have to pay less tax also
And your tax filing also becomes very simple
So if I talk about a very important point on which Nirmala Sitharaman focused a lot
It was that the taxpayer has an option
That if they want to pay the tax according to the old tax regime
They can do that as well
If they want to pay according to the new regime then they will have that option as well
After tax let us talk about the impact on the share market
What were the decisions taken related to the share market
And how do they impact you as a retail investor
Retail investors like you and I are very interested in IPO's
Because in the recent times a lot of IPO's earned us a lot of money
Like IRCTC
Ujjivan small finance bank
So there was a big announcement related to IPO's in today's budget
And Nirmala Sitharaman has said that the government is going to sell some stakes from LIC
And to sell those stakes its going to get its IPO for LIC
So in the coming days retail investors like you and I have a very good option
If you are thinking of investing in LIC
The second news that comes in the budget is related to IDBI bank
IDBI bank is a public sector bank and related to that the government has said that they are planning to sell some stakes of the bank
As soon as that new came the share of IDBI bank went up by 12-13%
But whatever investment decision you take you should wait and take it
And see how the government sells this stake
If I talk about the third announcement related to the share market then that is completely removing dividend tax
Now you must be thinking that dividend is tax free for the investors
So what is dividend tax here
So if I explain this to you with a small example
When one company earns a little profit
And when it distributes it to the shareholders as dividend
On that they had to pay around 15% tax
The burden of which indirectly came on retail investors
So the government has said that they are completely going to remove dividend tax
So the dividend money that we get now will be more than what we used to get before
If I talk about the fourth announcement then that was related to government securities
So on government securities the government is going to get another ETF, ETF stands for Exchange Traded Funds
Which directly trade in exchange and which can be bought directly by retail investors like you and I
Now let us talk about the fifth announcement
Before that I want to tell you a very interesting thing
Consider that you kept 10-20 lakhs in some bank
And that banks defaults
Until now the insurance you got on that money was just 1 lakh rupees
But today the government has increased that and made it 5 lakhs
So if you ever keep some money in a bank and that bank defaults
On that you will get upto 5 lakh of insurance
Whatever I spoke about until now, I covered two main topics
First, tax
That the decisions that came in this budget, how it impacts you in tax filing
Second I spoke about what those decisions were
That impact the share market
Let us talk about the third topic which is very important and that is economic development
What were the main decisions taken by the government related to economic development
And how the government is planning to develop India in the coming time
Before we talk about the announcements that help in India's development
I will talk about a very important number
About a very important parameter
Which is called fiscal deficit
The government sets a fiscal deficit every year
And after that tells us whether they achieved it or not
So if I talk about the previous year then the government set a target for fiscal deficit
3.3%
But the result that came out this year was 3.8%
But it is very important to see what target the government sets for the coming year
So if I talk about the fiscal deficit target for the next year
The government has set the target for 3.5%
Let us talk about the announcements
Which can help a lot of India's economic development
The first announcement that the government made was regarding smart cities
The government has said that in the coming time it is going to develop five smart cities
If I talk about the second announcement then that was related to networking and product manufacturing
If I talk about the telecom sector then there are a lot of products that are imported from other countries
Because of which our current deficit increases a lot
First you need to understand what current deficit is
Current deficit tells us how much we exported as a country
And how much we imported
So if we talk about India, we import a lot but we don't export as much
So in the networking sector
Until now India used to import a lot regarding this sector
Because of which our current deficit used to increase a lot
Which also used to impact our currency a lot
So the government has said a lot of attention is going to be paid to this
And it is going to be tried to manufacture in India itself
If we talk about the third announcement
The third announce was made to reduce the current deficit
And they got a new scheme in this called Nirvik scheme
Nirvik scheme is a new scheme brought about by the government where they are to try to increase their exports
And to increase the exports the government will mainly work on two things
First, the government will give more insurance on exports bill
Second, the duties to export
Refund will be given on that and a lot of export should happen and the government should cover the duties on it
As you know what's most important for economic development is infrastructure
Now we will talk about the announcements the government made with regards to infrastructure
And what were the main topics covered in infrastructure
If I talk about infra then the main topics under that are aviation industry
Railways, buildings
And a lot of other things apart from this that help India develop as an economy
The first announcement that was made in infra was that in India a 9000 km economic corridor is going to be made
In which many roads are going to be made
Which will help India to develop economically a lot
The second important announcement that was made in infra was aviation related
The government has said that in the coming year in India, 100 new airports are going to be made
Because of which the government is going to make an investment of 1 lakh crores
By 2024, under Udan scheme
Now let's talk about technology
As you know that India depends a lot on technology and if we talk about the service sector
A big contribution from that comes from the technology sector
So if I talk about technology then the government focused a lot on this
And very clearly mentioned
In ease of doing business on which India ranks 53
They will try to get it under 50 in the coming time
Apart from this Nirmala Sitharaman said another very important point
She said that data is the new oil
Which comes under the technology sector
Because of which new data sectors are going to be made in India
Data centre parks are going to be made and a lot of investment is going to happen in that
The government is going to try to focus on emerging technology
Like AI, artificial intelligent and iotp
Let us talk about the fourth topic about which Nirmala Sitharaman spoke in a lot of detail
And this topic is aspirational development
So Nirmala Sitharaman said that the government wants to focus a lot on aspirational development
So that the unemployment problem can be reduced in the coming time
Now you know that education is very important to reduce unemployment
So the government has said that their plan is, in the coming time
99,000 crores will be spent in the educational sector
Apart from this to reduce unemployment in any country it is very important to pay attention to skill development
So the government has said that in the coming time 3000 skill development centres are going to be opened
So that people can get skill development
So that they don't have a lot of problem in finding employment
Apart from that, in this topic Nirmala Sitharaman has also said in Swachh bharat abhiyaan, where the government focused a lot
In the coming time as well the government will spend 12,300 crores there
Let us talk about the fifth topic about which the budget gave a lot of attention to
And that is India as a caring nation
Now I will talk about that announcement
That falls under this topic which will help India to emerge as a caring country
The first announcement that was made here was under Beti bachao, beti padhao
So Nirmala Sithraman gave a data point in this that under this scheme
All the registrations that were made
In that girls registration was more as compared to boys
Under this there was another announcement for which Nirmala Sitharaman has said
India will establish a university of culture and heritage
Which can help save the culture and heritage of India in the coming time
Apart from this the government made another announcement under this topic
The government has said that by 2024, as you know that by that time India would've been independent for 75 years
The government has said that the G20 summit is going to held in India in 2024
Because of which the government will start investing 100 crores now itself
If I talk about the last announcement in thi topic then the government has said that they are going to spend a good amount in nutrition
The government has said that more than 35.6k crores is going to be invested in nutrition
So this was our video on budget 2020
In which we told you in very simple terms the announcements made in the budget
If I tell you again then we divided the entire video in five topics
First, tax
In which we told you the changes regarding tax
Second share market
What were the announcements regarding the share market
Third was on economic development
Fourth was on aspirational development
And fifth was India as a caring nation
So you can watch this video again if you want to understand it in detail
How the budget defines these topics
And what were the announcements under every topic
So if you liked this video, press the like button
And comment and let us know which portion of the budget did you like the best
And you can give us the reason behind that as well
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