Direct tax proposals in Budget 2020: Key highlights

    Around 70 exemptions removed under the new regime, says Nirmala Sitharaman.

    Nirmala Sitharaman today introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh.

    Key Highlights:

    • New simplified income-tax regime with low tax rates
    • New tax rates optional for those not availing any exemption
    • Zero income-tax for those earning up to Rs 5 lakh
    • 10% income-tax for incomes up to Rs 5-7.5 lakh
    • 15% income-tax for incomes from Rs 7.5-10 lakh
    • 20% income-tax for incomes from Rs 10-12 lakh
    • 25% income-tax for incomes from Rs 12.5-15 lakh
    • 30% income-tax for incomes above Rs 15 lakh
    • 100 exemptions allowed under I-T Act now
    • Around 70 exemptions removed under the new regime
    • Remaining I-T exemptions to be reviewed in the coming days
    • Govt to abolish Dividend Distribution Tax (DDT)
    • Dividends to be taxed in the hands of recipients
    • Revenue foregone due to DDT removal Rs 25,000 crore
    • To allow deduction of dividend received by holding companies from subsidiary
    • Corporate tax cut to 15% for power generation companies
    • Revenue foregone due to DDT removal Rs 25,000 crore
    • Tax payment on Esops from startups deferred by 5 years when they leave co
    • 100% tax exemption for SWFs for infra investment
    • Turnover limit for startups claiming tax deduction raised to Rs 100 crore
    • Tax holiday for qualified startups raised to 10 years

    Source- Economic Times.

The post Direct tax proposals in Budget 2020: Key highlights appeared first on GST Station.



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