Budget 2020 Updates on Direct Taxation

Budget 2020 Updates on Direct Taxation

Here are the Budget 2020 Updates:

• Govt to amend Income Tax Act so merged PSU banks can absorb losses
• FY21 divestment target said to be Rs 2.1 lakh cr vs FY20 target of Rs 1.05 lakh crore
• Interest & penalty waived in dispute settlement scheme till March 31, 2020
• Govt to launch new direct tax dispute settlement scheme
• Govt to launch 'Vivaad Se Vishwas' Scheme to reduce tax litigation
• Govt to amend I-T Act to allow faceless appeals
• To make the process of registering charitable institutions electronic: FM
• Tax holiday for affordable housing extended by 1 year
• Higher deposit insurance will cover 75% of all depositor vs 61% earlier: CRISIL
• Audit threshold for MSMEs raised to Rs 5 cr from Rs 1 cr
• Tax on co-operative societies reduced to 22% from 30%
• Govt proposes to make tweaks to tax structure for start-ups
• FM extends concessional 5% withholding tax to municipal bonds
• FM announces a 100% tax exemption on sovereign wealth funds' infra investment
• Tax cuts positive for household savings, which have been falling but need to watch how much of that is spent on consumption: CRISIL
• FM proposes to allow deduction of dividend received by holding cos from units
• New power generation cos to be offered a 15% tax rate: FM
• Revenue loss of Rs 25,000 cr due to the abolishment of DDT: FM Sitharaman
• Good News!! Dividend distribution tax abolished.
• Current I-T Act offers more than 100 deductions & exemptions, says FM Sitharaman
• New I-T scheme available for those willing forgo deductions, exemptions: FM
• No income tax for income up to Rs 5 Lakh
• 20% income tax for income between Rs 10-12.5 lakh vs 30% earlier
• 15% income tax for income between Rs 7.5-10 lakh vs 20% earlier
• 10% income tax for income between Rs 5-7.5 lakh: FM

• 25% income tax for income between Rs 12.5-15 lakh vs 30% earlier
• Saw substantial loss of revenue due to Corp tax cut in the short term: FM Sitharaman

Further updates will follow soon.

Read more & stay tuned for more details on Unionbudget2020 , Incometaxslabs , Budget2020 , Nirmalasitharaman, Budget2020 , Dividentdistributiontax , BudgetSession2020

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