Quick Summary
FINANCE BILL, 2020 PROVISIONS RELATING TO DIRECT TAXES Introduction 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, indi
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FAQ :
The Finance Bill 2020 aims to amend direct tax laws to increase tax revenue, offer tax incentives, reduce tax rates for co-operative societies, individuals, and HUFs, widen the tax base, resolve taxpayer issues, prevent tax abuse, and improve tax administration.
For individuals (not covered by special categories), the rates are: Nil up to Rs 2,50,000; 5% from Rs 2,50,001 to Rs 5,00,000; 20% from Rs 5,00,001 to Rs 10,00,000; and 30% above Rs 10,00,000.
Yes, for resident individuals aged 60-79, the tax-free income limit is Rs 3,00,000. For those aged 80 or above, it's Rs 5,00,000. The subsequent slabs and rates remain the same.
Surcharges for individuals vary based on total income. For incomes exceeding Rs 50 lakh, rates range from 10% to 37%, depending on whether the income exceeds Rs 1 crore, Rs 2 crore, or Rs 5 crore, with specific provisions for income under sections 111A and 112A.
A 'Health and Education Cess' is levied at a rate of 4% on the amount of income tax, inclusive of any applicable surcharge, for all assessees.
From assessment year 2021-22, resident co-operative societies have an option to be taxed under section 115BAD. The article also mentions that rates for co-operative societies and firms remain the same as FY 2019-20, with a 12% surcharge for incomes over Rs 1 crore.
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