CA. Atul Khurana
Quick Summary
Here I am presenting the simplified and summarized version of Direct Tax Proposals in Union Budget 2020 presented by Honorable Finance Minister of India on Feb 1, 2020. This article will help you to grasp the new insertions/amendments without going into the depth of each and every section. Lets B
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
The 'Vivaad se Vishwas Scheme' is a new initiative introduced in the Union Budget 2020 to simplify tax litigation. Under this scheme, assessees with pending disputes with the tax department will only need to pay the disputed tax amount, without incurring heavy penalties and interest.
The Union Budget 2020 proposed a new optional income tax slab structure. This new structure offers lower tax rates but eliminates many deductions, such as those under Section 80C, while the existing slab structure with deductions remains available.
Previously, a visitor was considered a resident in India if they stayed for 182 days. The Union Budget 2020 amended this, and the residency status will now be determined based on a stay of 120 days in India.
Perpetual registrations for charitable trusts under Section 12AA and 10(23C) have been removed. Registrations will now be granted for 5 years, and existing registered trusts must re-apply within three months of the Finance Act 2020 commencing. A provisional registration for 3 years has also been introduced for new entities.
The Dividend Distribution Tax (DDT) under Section 115-O has been removed. Now, the recipient of the dividend will be responsible for paying the tax, and TDS provisions related to dividends will apply to the recipient.
A new Section 194-O proposes that e-commerce operators must deduct 1% TDS on the gross sales amount facilitated through their platform for e-commerce participants. This rule has exceptions for individuals or HUFs whose gross sales do not exceed Rs. 5 lacs and who have submitted their PAN/Aadhaar details.
CAclubindia
