Union BUDGET 2020

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

DIRECT TAX-

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

2. 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%

4. Dividend Distribution Tax – Scrapped for Companies . Dividends to be charged to recipients.

5. New Electricity Generating Companies Corp Tax Rate 15%

6. 100% Tax exemption to foreign investment in priority sector.

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

8. Turnover limit for exemption for Start Ups now 100 Cr.

9. Options for Co-operative Socities: Co-operatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.

10. TAX AUDIT THRESHOLD LIMIT –

– Increased to 5 Cr. But with business with cash transaction of not more than 5%

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

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

13. Faceless Appeals on lines of Faceless Assessments

14.Bank deposit insurance increased from Rs 1 Lacs to Rs 5 Lacs

15 A person earning Rs 15 Lacs per annum will now pay Rs 1.95 Lacs in place of Rs 2.73 Lacs

16 For the purpose of determining residential status,the number of days for stay in India will be 120 days as against 182 days

17 All Indian citizens to be deemed resident if they are not resident ofany other country .Such citizens will be required to pay tax in
India on global Income

18 Charitable Trust Registration and 80 G exemption to be for 5 years .All existing trusts to apply again .

19 TCS on ecommerce payment to e commerce participant at the rate of 1%

20 TDS on FTS under Section 194 J reduced to 2%

21 TCS at the rate of 0.1 % will be applicabel in sale of goods if total sales to one person is more than Rs.50 Lakhs by a person
having turnover of more than Rs 10 Crore