Tax Reforms @ Union Budget 2020

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TNI Bureau: Finance Minister Nirmala Sitharaman on Saturday announced a new regime of personal income tax.

As per the new personal income tax regime individual taxpayers to pay tax at a reduced rate of 10% for income between Rs 5-7.5 lakh who would forego Chapter VI-A deductions.

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Key Highlights

👉 No Tax for Income up to Rs 5 lakh
👉 10% tax for income between Rs 5-7.5 lakh
👉 15% tax for income between Rs 7.5-10 lakh
👉 20% tax for income between Rs 10-12.5 lakh
👉 25% tax for income between Rs 12.5-15 lakh
👉 30% tax for Income above Rs 15 lakh
👉 Tax rates for new manufacturing companies at 15% lowest in the world
👉DDT abolished in the hands of the companies
👉Dividends will be taxed in the hands of shareholders at normal rates
👉Cooperatives have an option to be taxed at 22% with no deductions
👉Tax audit limit raised to Rs 5 crores
👉Limit of 5% raised to 10% – Circle rate in case of real estate
👉12A registration for new Institutions completely electronic
👉Faceless appeals introduced
👉Vivaad se Vishwas scheme. 483000 cases pending at various forums. Tax payer to pay only the tax demands by 31 March 2020. No penalty, no interest
👉Instant PAN based on Aadhaar
👉Startup turnover limit hiked to ₹ 100 crores from Rs 25 crores

 

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