India Union Budget 2020-21
India Union Budget 2020-21 is presented by Finance Minister Nirmala Sitharaman. It's very good budget for corporate Individuals. QFLES is displaying here just Corporate Individual Income Tax rates.
India Union Budget 2020-21 - Corporate Individual Tax Benefit
It's a historical budget and very good for average income individuals.
| Income |
Old Tax Rate |
New Tax Rate 2020-21 |
Saving |
| 0 - 2.5 Lakh |
Nil |
Nil |
|
| 2.5 - 5 Lakh |
5% |
Nil |
|
| 5 - 7.5 Lakh |
20% |
10% |
26000 on 7 Lakh |
| 7.5 - 10 Lakh |
20% |
15% |
39000 on 10 Lakh |
| 10 - 12.5 Lakh |
30% |
20% |
60000 on 12 Lac |
| 12.5 - 15 Lakh |
30% |
25% |
78000 on 15 Lakh |
| 15 - Above |
30% |
30% |
|
Other Key Highlights of Union Budget 2020-21
Taxation Related
(Income tax rates will be significantly reduced for those who forego reliefs, exemptions)
-
Optional for tax payers
- Simplified income tax return
- Removal of 70 deductions
-
Audit threshold for MSMEs raised to ₹5 crore from ₹1 crore
-
100% tax exemption on Sovereign Wealth Funds' Indra Investment.
-
Concessional 5% withholding tax extended to municipal bonds
-
Dividend Distribution Tax to be removed, companies will not be required to pay DDT, dividend to be taxed only at the hands of recipients at applicable rates
- Start ups provided with more income tax benefits.
-
Deposit insurance coverage increased to ₹5 lakh from the existing ₹1 lakh.
-
Government has extended additional Rs 1.5 lakh benefit on interest paid on housing loan till March, 2021
-
Date of approval of affordable housing projects for availing tax holiday on profit earned by developers extended by 1 year i.e Income Tax exemptions for affordable housing has been extended for one year
-
Tax payer charter will be part of statute.
-
New process of instantly allotting PAN through Aadhaar will be brought
-
Custom duty raised on footwear and furniture
-
Health cess on import of medical equipment
-
Vivad se Vishwas' scheme for direct tax payers appeals are pending at various forum
-
FM proposes scheme to bring down litigation in direct taxation scheme
-
Concessional tax rate of 15% extended to power generation companies
-
Income Tax Act to be amended to allow faceless appeals against tax orders on lines of faceless assessment
-
Tax on Cooperative societies proposed to be reduced to 22 per cent plus surcharge and cess, as against 30 per cent at present
-
Govt proposes 100% tax concession to sovereign wealth funds on investment in infra projects