Budget 2020 Highlights: This is what you got from Sitharaman’s Bahi Khata

Budget 2020 Highlights: This is what you got from Sitharaman’s Bahi Khata
Finance Minister Niramala Sitharaman on Saturday introduced a new optional personal income tax system and announced multi-billion dollar farm, infra, and a healthcare package to revive growth in the country. Emphasising on capacity building and empowerment of marginalised sections of the society while protecting the wealth creators, Sitharaman said this Budget will boost income and purchasing power of the people. Finance minister also raised the bank depositors insurance coverage to Rs 5 lakh from Rs 1 lakh.

Taxation:

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*New optional tax slabs: New income tax slabs will be available for those who forgo exemptions.

Taxable income slabs Tax rates
Up to Rs 5 lakh Nil
Rs 5 Lakh to Rs 7.5 Lakh 10%
Rs 7.5 lakh to Rs 10 lakh 15%
Rs 10 lakh to Rs 12.5 lakh 20%
Rs 12.5 lakh to Rs 15 lakh 25%
Rs 15 lakh and above 30%

* To simplify the tax system and lower tax rates, around70 of more than 100 income tax deductions andexemptions have beenremoved.

*Dividend Distribution Tax (DDT) abolished; Companies will not be required to pay DDT; dividend to be taxed only at the hands of recipients, at applicable rates.

*Cash reward system envisaged to incentivise customers to seek invoice.

*15% concessional tax rate for new power generation companies.

* Tax oncooperative societies reduced to22% without exemptions.

*100% tax concession to sovereign wealth funds on investment in infrastructure projects.

* Tax on Cooperative societies to be reduced to 22 per cent plus surcharge and cess ,as against 30 per cent at present.

*To end tax harassment, new taxpayer charter to be instituted. Tax harassment will not be tolerated, says FM…Read more>>

Source:-economictimes

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