Income Tax Budget 2020: Revised Income Tax Slabs, New Tax Regime & Changes – PDF Download


Income Tax Budget 2020 introduced in Parliament. The Budget proposes the creation of new income tax regime to simplify the process of calculating the tax on personal income. Along with it, the Union Budget 2020-21 removes as well as introduces various taxes along with amending the Income Tax Act, 1961. Have a look at the key taxation reforms introduced in Budget 2020 along with revised and new income tax rates or slabs and other key changes in the taxation system. Also, PDF Download Union Budget 2020 document here including the Financial Bill.

: The Union Budget 2020 is finally tabled in the Parliament to restore the Indian Economy by laying out a clear and straightforward roadmap to make India a USD 5 trillion economy by 2025, the dream of Prime Minister Narendra Modi. The Budget 2020 restructures the income tax slabs and announces various taxation reforms for the welfare of taxpayers. Get here all details of revised income tax rates and major taxation reforms announced in the Budget 2020 by FM Nirmala Sitharaman.

Budget 2020 is focused on boosting income and enhancing the purchasing power of people. The budget proposes some effective income tax reforms and changes to accelerate the growth of the Indian Economy and bring it back to the track. Though the Government undertook several initiatives in 2019-20 to revive the economy such as corporate tax rate cut, no progress was witnessed in terms of the revival of growth rate or market slump.

It is highly expected that the Income Tax Budget 2020 would offer some key changes and reforms in the Indian Taxation System to spur investments and growth. These measures could be lessened personal income taxes, increase in basic exemption limit, a restructured tax rate structure among others. Have a look at the details of Income Tax Budget 2020-21 below:

PDF Download Union Budget 2020-21

Expenditure & Revenue: The Budget mentions the Revised Estimates of expenditure to Rs 26.99 lakh crore for 2019-20  and Revenue Receipts of Rs 19.22 lakh crore.

Direct Tax

Corporate Tax Rate reduced to 15% for new mfg companies and to 22% for existing companies, the lowest in the world.

The net market borrowings for 2020-21 are fixed at Rs 5.36 lakh crore.

New Tax Regime announced: Simplified Personal Income Tax regime proposed in the Budget 2020. Have a look at the new income tax rates:

Up to 5 lakh Income: 0%

From 5 lakh to 7.5 lakh: 10%

From 10 Lakh to 12.5 lakh: 20%

From 12.5 lakh to Rs 15 Lakh: 25%

Beyond Rs 15 Lakh: 30% (No Change)

However, people who want to follow the old Income Tax Regime with exemptions can continue to do so

Previous & Revised Income Tax Slabs

Income Slab

 Income Tax Rate 2020-21

Income Tax Rate 2019-20

Up to Rs 5 lakh

Nil

Nil

Rs 5 to Rs 7.5 lakh

10%

20%

Rs 7.5 to Rs 10 lakh

15%

20%

Rs 10 to Rs 12.5 lakh

20%

30%

Rs 12.5 lakh to Rs 15 lakh

25%

30%

Over 15 lakh (No Change)

30%

30%

Amendment of Income Tax Act: Budget amends the Income Tax Act, 1961 to introduce ‘No Dispute, But Trust’ scheme to bring down the number of direct tax cases or disputes. At present, over 4.5 lakh direct tax cases are pending in appellate tribunals.

Removal of Dividend Distribution Tax – Considering that the companies were required to pay 15% DDT and additional surcharge on dividend paid to shareholders which increases the tax burden for investors, the Government proposes the removal of DDT Regime.

Cess & Duty

Customs duty on footwear and furniture will be increased.

Nominal Cess will be imposed on the import of medical equipment as these are now being made in India.

How Income Tax will be computed now?

Here we have taken cases of people with different income slabs to show you how the Income Tax will be computed now on the basis of revised Income Tax Slabs in Union Budget 2020. Have a look:

Particulars

Mr X

(in Rs)

Annual Income

15,00,000

Less: Standard Deduction

50,000

Less : Deduction under 80C

1,50,000

Less : HRA deduction

1,50,000

Gross Taxable Income (GTI)

11,50,000

Income Tax 2020-21 (In case of no deduction or exemption availed)

1,95, 000

Income Tax (As per previous tax slab 2019-20)

2,73,000

 





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