Key take Away from the Budget 2020-21 for Income Tax and GST
Relief to taxpayers, govt. rationalised personal income tax rates, the same is as follows:
Income from 2.5 Lacs -5 Lacs – NIL
Income from 5 Lacs -7.5 Lacs -10%
Income from 7.5 Lacs -10 Lacs - 15%
Income from 10 Lacs -12.5 Lacs -20%
Income from 12.5 Lacs -15 Lacs -25%
Income above 15 lacs -30%, with no deduction & exemptions;
New tax regime is optional for taxpayers Optional
b) Dividend distribution tax “DDT” has been abolished, dividend will be taxed in the hands of taxpayers as per slab rates
c) Income tax Audit Limit has been increased from existing Rs. 2 crores to Rs. 5 Crores to those businesses which carry out less than 5% of their business in cash
d) Registration of Charitable institution under Income tax Act will be 100% electronically with provisional registration number
e) Vivad se vishwas scheme has been introduced, taxpayer to pay only amount of disputed tax, will get complete waiver on interest and penalty, if scheme is availed by March 31, 2020
f) To ease allotment of PAN, new process of instantly allotting PAN through Aadhaar will be brought
g) Concessional corporate tax cut to be extended to new domestic companies engaged in power generation
h) Allowance faceless appeals against tax orders on lines of faceless assessmen
i) Co-operative societies will get the option of being taxed at the rate of 22% plus 10% surcharge and 4% cess.
j) Turnover limit under availing exemption for start up has been extended from 25 crores to Rs. 100 Crores
k) To boost startups, Tax burden on employees due to tax on Employee Stock Options to be deferred by 5 years or till they leave the company or when they sell, whichever is earliest.
l) Pre-filling of ITR to be introduced
m) A taxpayer’s charter to be institutionalised in the statute to end taxpayer harassment
n) Under GST, compensation payout to states to be limited to cess collections
o) Aadhar based verification has been introduced for GST Taxpayers
p) Budget proposes a special scheme to provide subordinate debt for MSMEs
q) Deposit insurance is increased from Rs. 1lac to Rs. 5 lac
r) Govt plans to raise funds via LIC IPO
s) Nominal GDP growth estimates at 10%
