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