Tax Reforms @ Union Budget 2020

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.

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