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Direct and Indirect Tax Reforms in Budget 2020

Direct and Indirect Tax Reforms in Budget 2020

Union Budget 2020-2021 key Highlights:  Direct Tax: 1. New Tax slabs for Individuals, HUF, AOP, BOI, AJP are optional. Assessee can also opt for old regime with exemptions and deductions. New slabs are: – Those earning up to Rs 5 lakhs are exempt from paying taxes. 10% tax for everyone earning Rs 5-7.5 lakhs against the current 20%. 15% tax for everyone earning Rs 7.5- 10 lakhs against current 20%. 20% tax for everyone earning Rs 10-12.5 lakhs against current…

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Section 115BAC – New income tax slab rates for Individuals and HUFs inserted by Finance Bill 2020

Section 115BAC – New income tax slab rates for Individuals and HUFs inserted by Finance Bill 2020

New Income tax rate for individuals and HUFs   A new section 115BAC is inserted in the Income Tax Act by Finance Bill 2020 which provides following On satisfaction of certain conditions, an individual or HUF shall, from P.Y. 2020-21, A.Y. 2021-22 onwards, have the option to pay tax in respect of the total income at following rates:   Total Income (Rs) Rate Upto 2,50,000 Nil From 2,50,001 to 5,00,000 5 percent From 5,00,001 to 7,50,000 10 percent From 7,50,001…

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Clarification by IT department for NRI Taxation

Clarification by IT department for NRI Taxation

Government of India  Ministry of Finance  Department of Revenue  Central Board of Direct Taxes  New Delhi, 2nd February, 2020  CBDT issues clarification on the new provision pertaining to residence in India  The Finance Bill, 2020 has proposed that an Indian citizen shall be deemed to be resident in India, if he is not liable to be taxed in any country or jurisdiction. This is an anti-abuse provision since it is noticed that some Indian citizens shift their stay in low…

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