Feb 01 2020
Added in BUDGET 2020 / BUDGET 2020 Print Friendly and PDF
BUDGET 2020 : AMENDMENTS IN INCOME TAX
 
  • BIG ANNOUNCEMENT ON INCOME TAX: 

    Income Tax Slab

    NEW IT RATE (AY 20-21)

    Current IT RATE

    0-2,50,000

    0

    0

    2,50,001-5,00,000

    5

    5

    5,00,001-7,50,000

    10

    20

    7,50,001-10,00,000

    15

    20

    10,00,001-12,50,000

    20

    30

    12,50,001-15,00,000

    25

    30

    15,00,001 and above

    30

    30

  • FM Nirmala Sitharaman says that it will amend I-T Act to enable faceless appeals on the lines of faceless assessments.

    FM Nirmala Sitharaman says to ease deduction donation it is proposed to pre-fill information of those donating. This will result in hassle free claims for the individuals claiming tax exemptions.

    FM Nirmala Sitharaman says for affordable housing, the deduction of Rs 1,50,000 will be extended to loan sanction by one year. Tax holiday on profits of developers involved in affordable housing projects will be extended by one year to March 2021. 

    FM Nirmala Sitharaman says the concessional 5% withholding tax has been extended  to municipal bonds. Cooperatives are taxed at 30 percent now. FM says cooperatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions. 

    Corporate tax cut will be available for power generation companies as well. Government will grant exemptions for sovereign wealth funds in infrastructure and other notified sector with minimum lock-in of three years. The rate of withholding tax has been extended to 2023 for FPIs.

    Dividend distribution tax abolished, says FM. Companies will no longer be required to pay DDT. A total of Rs 25,000 crore is revenue foregone due to DDT abolition, says FM. This will make India an attractive investment destination.

    FM Nirmala Sitharaman says currently more than 100 exemptions provided in I-T Act. Now around 70 of them have been removed in the simplified regime. Remaining will be reviewed over the coming years to simplify the system, says FM.

    FM Nirmala Sitharaman says I-T Act will be amended where CBDT will be mandated the taxpayers charter. Further, PAN will be instantly online on the basis of Aadhaar without filling any forms. Personal income tax is now at lowest level, says FM.

    FM Nirmala Sitharaman that key is to reduce litigation in direct taxes. A total of 4.83 direct tax cases pending in various forums. So a new direct tax dispute settlement under 'Vivad se Vishwaas Scheme'. No penalty will be charged if taxpayers pay by March 31, 2020.Here, only disputed tax amount has to be paid.

 

 

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