Download Finance Bill 2020

The Finance Bill 2020 was presented in Parliament today, 1st February 2020. A copy of the same is available for download.

The provisions of Finance Bill, 2020 (hereafter referred to as “the Bill”), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as ‘the Act’), Prohibition of Benami Property Transactions Act, 1988 (hereafter referred to as “PBPT Act”), and Finance Act, 2013, to continue to provide momentum to the buoyancy in direct taxes through tax-incentives, reducing tax rates for co-operative society, individual and Hindu undivided family (HUF), deepening and widening of the tax base, removing difficulties faced by taxpayers, curbing tax abuse and enhancing the effectiveness,
transparency and accountability of the tax administration.

With a view to achieving the above, the various proposals for amendments are organised under the following heads:—

(A) Rates of income-tax;
(B) Tax incentives;
(C) Removing difficulties faced by taxpayers;
(D) Measures to provide tax certainty;
(E) Widening and deepening of tax base;
(F) Revenue mobilisation measures;
(G) Improving effectiveness of tax administration;
(H) Preventing tax abuse; and
(I) Rationalisation of provisions of the Act.

Those earning up to Rs 5 lakhs are exempt from paying taxes
10% tax for Rs 5-7.5 lakh pay 20%
15% tax for Rs 7.5- 10 lakhs pay 20%
20% tax for Rs 10-12.5 lakhs pay 30%
25% tax for Rs 12.5-15 lakhs pay 30%
Those earning more than Rs 15 lakhs get no exemptions#Budget2020

— Prabhudas Lilladher (@PLIndiaOnline) February 1, 2020

LTCG tax stays; budget 2020 disappoints mutual fund investors and returns on investments in equity mutual funds held over a year are treated as long-term capital gains and taxed at 10% on gains of over Rs 1 lakh in a financial year.#Budget2020 #PLIndiaOnline #PLBudgetUpdates

— Prabhudas Lilladher (@PLIndiaOnline) February 1, 2020

Budget 2020 proposes a scheme to bring down litigation in direct taxation scheme; 4.83 lakh direct cases pending in various appellate forums.#Budget2020 #PLIndiaOnline #PLBudgetUpdates

— Prabhudas Lilladher (@PLIndiaOnline) February 1, 2020

Govt. extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.#Budget2020 #PLIndiaOnline #PLBudgetUpdates

— Prabhudas Lilladher (@PLIndiaOnline) February 1, 2020

#Budget2020 Proposed removal of Dividend Distribution tax on dividends receivable for Holding Cos – Positive for Bajaj Finserv, Bajaj Holdings, Grasim #SharekhanResearch #SharekhanFNA

— Sharekhan (@Sharekhan) February 1, 2020

Govt proposes deferment of tax payment by employees on ESOPs from startups by 5 years#Budget2020 #PLIndiaOnline #PLBudgetUpdates

— Prabhudas Lilladher (@PLIndiaOnline) February 1, 2020

#Budget2020 government proposed to remove dividend distribution tax; Positive for high dividend paying companies like ONGC, Coal India, IOCL, Infosys, TCS, NTPC, Power Grid, Bajaj Auto, Hero Motocorp, ITC, HUL, Nestle, Bajaj Finserv #SharekhanResearch #SharekhanFNA

— Sharekhan (@Sharekhan) February 1, 2020