Budget 2020

Some points to be noted with regards to Direct Tax

* Proposed Direct Tax Reforms* * New Simplified Personal Income Tax Regime for Individual Tax Payers • no deduction or exemption • 5-7.5 Lakhs - 10 % • 7.5 - 10 Lakhs - 15 % • 10 - 12.5 Lakhs - 20 % • 12.5 - 15 Lakhs - 25 % • Above 15 Lakhs - 30 % • optional for tax payers • simplified income tax return • removal of 70 deductions * Dividend Distribution Tax on companies removed and dividend to be taxed in hands of the recipient. * 15% concessional rate of corporate tax extended to Power Sector * Foreign Investment encouraged by extending lower withholding tax rate to interest on various securities in respect of foreign investment * Start ups provided with more income tax benefits * Cooperative societies provided an option to be taxed at 22 % with no exemption * Tax Audit threshold increased to 5 crores if less than 5 % turnover is in cash * New Charitable Institution registration process to be completely electronic * Faceless Appeals to be enabled in lines of faceless assessments * Vivaad se Vishvash • no Dispute but Trust Scheme • Direct Tax Dispute Resolution • payment of all taxes will lead to waiver of penalty and interest • applicable for all pending appeals at all levels * PAN to be allotted instantly on basis on Adhar