Highlights of Budget 2020
- Government proposed New Tax regime which is optional. Assessee can opt old regime with deductions and exemptions. Under new regime, without claiming any deductions or exemptions, New Tax Slabs will be: (for A.Y. 2021-2022)
-Exempt upto 2.5 lakhs.
-5% slab for income between 2.5 lakh to 5 lakhs.
-10% slab introduced for income between 5 lakh to 7.5 lakhs.
-15% slab introduced for 7.5 lakh to 10 lakhs.
-20% slab introduced for 10 lakh to 12.5 lakhs
-25% slab introduced for 12.5 lakh to 15 lakhs
-30% for income above 15 lakhs.Around 70 deductions have been scrapped under new tax regime.
2. Current DDT rate was 15% plus applicable surcharge and cess. In this budget DDT is scrapped. Companies will not pay DDT. Dividend will be taxable in hands of recipient.
3. Cooperative society current tax at 30% plus surcharge and cess. New option tax at 22% plus 10% surcharge plus 4% cess with no deductions.
4. Tax Audit: MSMEs currently having business turnover above 1 crore need to get accounts audited. The turnover threshold is now increased to 5 cr. The increased limit shall apply only to those businesses which carry out less than 5% business transaction in cash.
5. Deduction of 150000 was given to affordable housing in previous budget. Loan sanction date has been increased to 1 year i.e., upto 31 March 2021.
6. Charitable institution registration process switched from manual to electronic.
