Home      Free WhatsApp Updates      Services      GST E-Books
🔒 Login    

Work contract services provided to National Centre for Biological Sciences (NCBS) to be taxable at 18% GST and not 12% GST: Says AAR

    

CBIC tweet for consideration of GST late fee waiver for past period from Aug 2017 to Jan 2020

    

Next GST Council Meeting likely to happen on June 14

    

Principles of natural justice not followed by officer. Assessment order set aside and remitted back for redoing the assessment again on merits of case : Madras High Court

    

Bail Petition of Sh. Rajesh Arora : Rajasthan High Court

    

Retrofitted two wheelers for use of differently abled persons to be taxed as normal vehicle under HSN 87112019 @ 28% GST with ITC : Says AAR, Karnataka

    

GSTN advisory for registration of IRP/RPs on the GST Portal

    

Early hearing of SKH Sheet Metals accepted by Delhi High Court on the issue of availment of transitional credit under GST

    

Petitioner got approval from Bombay High Court to visit the office premises of Petitioner to collect records and information

    

Emaar MGF held guilty for profiteering of Rs. 13 crore upto 31st March 2019: Says NAA

    
View all
GST E-Books   
TaxReply.com - Free Tax updates for All
GST Library
GST News
About GST Library
E-Books
Subscription Plans
Offers
GST Rates Reckoner
Classification of Goods and Services
Classification of Goods and Services (Search)
Free Trial
GST Set-off Calculator
Full Site Search
GST Act / Rules
GST Act / Rules - Latest Amendments
GST Amendment Statistics
GST Notifications / Circulars Press Releases +
National Anti-Profiteering Authority
GST Case Laws (All)
↳ AAR Orders
↳ AAAR Orders
↳ NAA Orders
↳ High Court Orders
↳ Supreme Court Orders
GST Forms   
E-way Bill
↳ E-way Notifications
↳ E-way Bill News
↳ E-way Bill Rules
↳ E-way Bill FAQ
Finance Bill

Budget 2020 : Highlights
01st Feb 2020

1. New Tax Slab Rates:

Income Tax
Upto 5,00,000 Nil
5,00,000 to 7,50,000 10%
7,50,000 to 10,00,000 15%
10,00,000 to 12,50,000 20%
12,50,000 to 15,00,000 25%
Above 15,00,000 30%

 

The above tax slab rates are optional for assessees, provided they forego various deductions and exemptions. However if assessee wishes to claim deduction and exemption, then he is free to be taxed as per old rates.

 

2. Dividend Distribution Tax (DDT):

DDT has been proposed to be abolished. Companies will no more longer be required to pay DDT. The burden has again been shifted to the recipeints. Dividend shall now be taxed in the hands of recipients only and at applicable slab rates.

 

3. Tax on Cooperative Societies:

Co-operative societies can choose to pay tax @ 22% plus 10% surcharge and 4% cess, as against 30% at present.

 

4. Faceless Appeals:

Govetment to introduce faceless appeals like faceless scrutiny assessments. This will bring ease and transparency in the system.


5. Vivaad se Vishwaas Scheme:

Goverment to launch new direct tax dispute settlement scheme called "Vivaad se Vishwaas scheme". Under this scheme assessee will be required to pay only 'Tax' portion of demand. Interest and penalty shall be waived off completely for those who wish to pay the disputed amount till March 31 2020.


6. Concessional tax rate of 15% has been extended for new power generation companies.

 

7. Aadhar based verification:

Aadhaar based verification of taxpayers shall be introduced to weed out dummy or non-existent taxpayers.

 

8. Instant issuance of Aadhar based PAN:

Govetment to start instant allotment of PAN on the basis of Aadhaar Number.

 

9. Donation:

Registration of charity institutions shall be made completely electronic. Also to ease deduction of donation, it is proposed to pre-fill information of those donating. This will result in hassle free claims for the individuals claiming tax exemptions.


10. Housing:

Tax holiday for affordable housing has been extended for another one year. Additional deduction of Rs. 1.5 lakh for interest paid on loans taken for an affordable house to be extended till 31st March, 2021.
 

11. Concessional withholding tax rate of 5 percent on interest payment to non-residents has been extended up to June 30, 2022
 
 
12. Bank deposit Insurance Cover by Govt.: 
 
Bank deposit insurance cover has been increased from Rs.1,00,000 to Rs.5,00,000 per depositor.
 
 
13. It has been also proposed to defer tax payment by employees on employee stock ownership plan (ESOPs) from startups by a period of five years.
 
 
14. Indirect Tax
 
Excise duty hiked on cigarettes and obacco products.
 
Increased custom duty on imported footwear and furniture.
 
Health cess has been imposed on import of medical equipment.

Customs duty on imported wall fans increased to 20% from 7.5%.

Custom duty on tableware / kitchenware made of porcelain or China ceramic, clay iron, steel and copper has been increased to 20%.

Duty exemption withdrawn on raw sugar, agro-animal based products, tuna bait, skimmed milk, certain alcoholic beverages, soya fibre and soya protein.

Finance Minister also mentioned that exemptions from customs duty has been given in public interest from time to time. On review, some exemptions are being withdrawn and rest will be reviewed after September 2020.

Customs duty on catalytic converters, parts of commercial vehicles and other than electric vehicles has also been hiked.

Anti-dumping duty on purified terephthalic acid (PTA), which is used in production of high-performance multipurpose plastics, has been abolished.

GST reforms will continue including a simplified return-filling form.

GST Refund has been simplified and has been fully automated.

Aadhaar-based taxpayer verification will be done.

 

15. E-commerce operators to deduct TDS on payments to e-commerce participants at 1% with those having PAN/Aadhaar and 5% for those without PAN/Aadhaar.
 
 
Download
Finance Bill, 2020 as introduced in Lok Sabha 
 
 
Memorandum Explaining the Provisions in The Finance Bill, 2020 
 
 
Budget Speech by Hon'ble Finance Minister Nirmala Sitharaman 
 
 
 
 
 
.... for more updates on budget 2020 please stay tuned.

Subscribe to Complete GST Library

Posted by

TaxReply

on Feb 1, 2020

Comments


Thanks
By: Goutam Kumar Jain | Dt: Feb 1, 2020
Tq
By: Shreeshaila P H | Dt: Feb 1, 2020
Thanks for your information
By: Abdul Razaj | Dt: Feb 1, 2020
Thanks
By: Sunil Yadav | Dt: Feb 1, 2020
Thanks Sir
By: Sheetal | Dt: Feb 1, 2020
Please explain Income Tax Dipute Settlement Scheme.
By: Malik G | Dt: Feb 1, 2020
Thanku.
By: Vijay Mehra | Dt: Feb 1, 2020
Please explain more sir.
By: L K Sharma | Dt: Feb 1, 2020
Thanks
By: Sapna Yadav | Dt: Feb 1, 2020
All people should need for government support
By: Annappa | Dt: Feb 1, 2020
Thank u sir
By: Rakesh | Dt: Feb 1, 2020
Thanks Sir.
By: Pavan Molawade | Dt: Feb 1, 2020
Many thanks for information
By: Pravin Joshi | Dt: Feb 1, 2020
🙏🙏
By: S. Goel | Dt: Feb 2, 2020
Sir, please explain 44AB changes in budget.
By: Sharda Mittal | Dt: Feb 3, 2020
Which tax rate slab is beneficial for person having taxable income of around 6 lakh.
By: Pooja Giridhar | Dt: Feb 3, 2020
Please explain Vivad se Vishwash Scheme.
By: Manish Poddar | Dt: Feb 3, 2020


Post your comment here !


5398