Budget 2020, Tax Updates, Changes by Union Budget 2020

Changes by Union Budget 2020

The Budget was divided in 3 themes, First Theme was Aspirational India, second was Economic development for all, and third was Building a caring society.

Rural Development, Wellness, water and sanitation & Education were the limbs of Aspirational India. Infrastructure, Oil & Gas sector was main theme for Economic development.

Tax payers had huge expectations from This budget in terms of reduction of Tax Rates.

The FM Quoted that “Corporate Rax @ 15% lowest in the world”

Income Tax Updates are as follows:

• New Slab Rates for FY 2020-21 are as follows:

New Slab Rates for FY 2020-21, Changes by Union Budget 2020

Rate of 30% to be levied for those earning above 15 Lakh

• Dividend Distribution Tax Abolished
• Corporate Tax Rate of 15% available for Power Sector as well
• TDS Rates on Interest on Bonds reduced to 4% from existing 5%
• Coorporative societies have option to be taxed @25% with no exemption
• Tax Audit Turnover raised from Rs. 1 Cr. to Rs. 5 Cr.
• Tax Holiday for Affordable Housing Extended
• Faceless Tax Appeals proposed – New Digital Scheme For Tax Litigations
• New Scheme Introduced for reduction of Income Tax Litigation – Vivad se Vishwas Scheme
• The FM Also said that government won’t tolerate tax harrassment

Indirect Tax Updates

GST

• Check on Fraud Input Tax Credit
• E-Invoice in Process
• Aadhaar Based Tax Verification Introduced

Customs Act

• Strict Checks for import of sensitive Items
• Check on Dumping of Goods
• Governement to take measures to ensure that medical equipments are made in India, Health Cess Proposed on Medical Equipments

Tags : Budget 2020 , Income Tax, Union Budget 2020, GST, slab rates, Income Tax Deduction

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