MAJOR TAX PROPOSALS
1. TAXPAYERs' CHARTER
Budget 2020 Highlights
in various Acts like Companies Act, for removing harassment of and protecting Taxpayers.
1. VIVAD SE VISHWAS SCHEME IN INCOME TAX -
No interest & penalty if tax paid by 31st March 2020. Some additional amt. By 30th June.
2. Option to Individual without around 70 exemptions/ Deductions (With 1.5L Ch VIA Deductions) -
- Till 5L - No Tax
- 5L - 7.5L - 10%
- 7.5L - 10L - 15%
- 10L - 12.5L - 20%
- 12.5L - 15L - 25%
- More than - 30%
3. Prefiled tax return for individuals in new regime
4. Dividend Distribution Tax -
scrapped for companies . Dividends to be charged to recipients.
5. New Electricity Generating Companies Corp Tax Rate 15%
6. 100% Tax exemption to foreign investment in priority sector.
7. Start Ups - ESOPs to employees to be taxable after 5 years or sale or as per other conditions.
8. Turnover limit for exemption for Start Ups now 100 Cr.
9. Options for Co-operative Socities: Co-operatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.
10. TAX AUDIT THRESHOLD LIMIT -
Increased to 5 Cr. But with business with cash transaction of not more than 5%
11. Tax Holiday to developers of affordable housing extended by 1 year.
12. Limit of difference with circle can be 10% now (up from 5%)
13. Faceless Appeals
on lines of Faceless Assessments