Union budget 2020 Direct tax reforms

*Union Budget 2020*

* 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