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Budget 2020

Income Tax

Income tax rates for Individual are reduced to

  • 10% for income between Rs 5 – 7.5 lakhs (down from 20%)
  • 15% for income between Rs 7.5 – 10 lakhs (down from 20%)
  • 20% for income between Rs 10 – 12.5 lakhs (down from 30%)
  • 25% for income between Rs 12.5 – 15 lakhs
  • 30% for income more than Rs 15 lakh onwards

More than 100 deductions provided currently under I-T Act. Proposal is to remove 70 of them.

DDT will not be applied to companies. Individuals are required to pay tax on such income at applicable rates. Deduction allowed for dividend received by holding company from subsidiary.

Pre-filled ITR forms will be provided to let the taxpayers file their returns easily.

In a boost to MSMSEs, turnover threshold for audit raised to Rs 5 crore from Rs 1 crore. The condition is that maximum 5% of all sales/receipts and all purchases/expenditure is made in cash.

Income Tax Act to be amended to allow faceless appeals against tax orders on lines of faceless assessment.

Govt extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.

Rs 40,000 crore per annum will be revenue foregone from new income tax rates for individuals.

Govt proposes 100 per cent tax concession to sovereign wealth funds on investment in infra projects.

Pre-fill information of donation will result in hassle-free claims for the individuals claiming tax exemptions.

Turnover limit for deductions under Section 80-IAC to start-ups has been proposed to be increased to Rs. 100 crore.

Other

Govt to sell part of its stake in LIC by way of IPO.

FY21 fiscal deficit target at 3.5% of GDP.

Ayushman Bharat hospitals in 100 more districts.

Rs 4,400 crore allocation for clean air.

Insurance cover on deposists by DICGC to be hiked to Rs 500,000 lakh from Rs 100,000.

The government plans to increase investment limit of foreign portfolio investors (FPI) in corporate bonds from 9 per cent to 15 per cent.

GDP nominal growth has been estimated at 10%.

100 more airports by 2024.

You can check the Finance Bill 2020 here.

About Prateek Agarwal

Prateek Agarwal is a Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He writes mainly about GST and Finance.


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