BUDGET 2020: Major Tax Proposals

Tax Proposals : BUDGET 2020 

• • TAXPAYERs’ CHARTER in various Acts like Companies Act, for removing harassment of and protecting Taxpayers.

• • VIVAD SE VISHWAS SCHEME IN INCOME TAX – No interest & penalty if the tax paid by 31st March 2020. Some additional amt. By 30th June.

• • Option to Individual without around 70 exemptions/ Deductions (With 1.5L Ch VIA Deductions) -Till 5L – No Tax
    5L – 7.5L – 10%
    7.5L – 10L – 15%
    10L – 12.5L – 20%
    12.5L – 15L – 25%
    More than – 30%

• • Prefiled tax return for individuals in the new regime.

• • Dividend Distribution Tax –  scrapped for companies. Dividends to be charged to recipients.

• • New Electricity Generating Companies Corp Tax Rate 15%.

• • 100% Tax exemption to foreign investment in the priority sector.

• • Start-Ups – ESOPs to employees to be taxable after 5 years or sale or as per other conditions.

• • Turnover limit for the exemption for Start-Ups now 100 Cr.

• • Options for Co-operative Societies: Co-operatives can choose a 22 per cent tax with 10 per cent surcharge and 4 per cent cess with no exemptions.

• • TAX AUDIT THRESHOLD LIMIT –  Increased to 5 Cr. But with business with cash transaction of not more than 5%

• • Tax Holiday to developers of affordable housing extended by 1 year.

• • Limit of difference with a circle can be 10% now (up from 5%).

• Faceless Appeals on lines of Faceless Assessments.