^®
TaxReply India Private Limited

GST Library

Best GST Library

Subscription Plans

TaxGPT

GST News | Updates

GST Calendar

GST Case Laws

GST Case Laws Sitemap

GST Notifications, Circulars, Releases etc.

Act & Rules

Act & Rules (Multi-view)

GST Rates

HSN Codes ^New

GST Forms

GST Diary

GST Notebook

GST Fees Manager

GST Council Meetings

GST Set-off Calculator

ITC Reversal Calculator

E-invoice Calculator

Inverted Duty Calculator

GSTR-3B Manual

GSTR-9 Manual

GSTR-9C Manual

Full Site Search

E-way Bill

Finance Bill

GST e-books

TaxReply Support

YouTube Videos

Twitter

Buy Premium Tax Domains

About Us

Our Services

🔒

TaxReply India Pvt Ltd

🔒

^®

Subscribe Free GST updates on...

Subscribe to Best GST Library of India and get ahead of the rest. Click here for plans. | GST Act & Rules e-book Click here. |

4.11k

Budget 2020 : Highlights
01^st Feb 2020

1. New Tax Slab Rates:

Income	Tax
Upto 5,00,000	Nil
5,00,000 to 7,50,000	10%
7,50,000 to 10,00,000	15%
10,00,000 to 12,50,000	20%
12,50,000 to 15,00,000	25%
Above 15,00,000	30%

The above tax slab rates are optional for assessees, provided they forego various deductions and exemptions. However if assessee wishes to claim deduction and exemption, then he is free to be taxed as per old rates.

2. Dividend Distribution Tax (DDT):

DDT has been proposed to be abolished. Companies will no more longer be required to pay DDT. The burden has again been shifted to the recipeints. Dividend shall now be taxed in the hands of recipients only and at applicable slab rates.

3. Tax on Cooperative Societies:

Co-operative societies can choose to pay tax @ 22% plus 10% surcharge and 4% cess, as against 30% at present.

4. Faceless Appeals:

Govetment to introduce faceless appeals like faceless scrutiny assessments. This will bring ease and transparency in the system.

5. Vivaad se Vishwaas Scheme:

Goverment to launch new direct tax dispute settlement scheme called "Vivaad se Vishwaas scheme". Under this scheme assessee will be required to pay only 'Tax' portion of demand. Interest and penalty shall be waived off completely for those who wish to pay the disputed amount till March 31 2020.

6. Concessional tax rate of 15% has been extended for new power generation companies.

7. Aadhar based verification:

Aadhaar based verification of taxpayers shall be introduced to weed out dummy or non-existent taxpayers.

8. Instant issuance of Aadhar based PAN:

Govetment to start instant allotment of PAN on the basis of Aadhaar Number.

9. Donation:

Registration of charity institutions shall be made completely electronic. Also to ease deduction of donation, it is proposed to pre-fill information of those donating. This will result in hassle free claims for the individuals claiming tax exemptions.

10. Housing:

Tax holiday for affordable housing has been extended for another one year. Additional deduction of Rs. 1.5 lakh for interest paid on loans taken for an affordable house to be extended till 31st March, 2021.

11. Concessional withholding tax rate of 5 percent on interest payment to non-residents has been extended up to June 30, 2022

12. Bank deposit Insurance Cover by Govt.:

Bank deposit insurance cover has been increased from Rs.1,00,000 to Rs.5,00,000 per depositor.

13. It has been also proposed to defer tax payment by employees on employee stock ownership plan (ESOPs) from startups by a period of five years.

14. Indirect Tax

Excise duty hiked on cigarettes and obacco products.

Increased custom duty on imported footwear and furniture.

Health cess has been imposed on import of medical equipment.

Customs duty on imported wall fans increased to 20% from 7.5%.

Custom duty on tableware / kitchenware made of porcelain or China ceramic, clay iron, steel and copper has been increased to 20%.

Duty exemption withdrawn on raw sugar, agro-animal based products, tuna bait, skimmed milk, certain alcoholic beverages, soya fibre and soya protein.

Finance Minister also mentioned that exemptions from customs duty has been given in public interest from time to time. On review, some exemptions are being withdrawn and rest will be reviewed after September 2020.

Customs duty on catalytic converters, parts of commercial vehicles and other than electric vehicles has also been hiked.

Anti-dumping duty on purified terephthalic acid (PTA), which is used in production of high-performance multipurpose plastics, has been abolished.

GST reforms will continue including a simplified return-filling form.

GST Refund has been simplified and has been fully automated.

Aadhaar-based taxpayer verification will be done.

15. E-commerce operators to deduct TDS on payments to e-commerce participants at 1% with those having PAN/Aadhaar and 5% for those without PAN/Aadhaar.

Download
Finance Bill, 2020 as introduced in Lok Sabha