Direct tax proposals in Budget 2020: Key highlights

Nirmala Sitharaman today introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh.

Key Highlights:

>> New simplified income-tax regime with low tax rates
>> New tax rates optional for those not availing any exemption
>> Zero income-tax for those earning up to Rs 5 lakh
>> 10% income-tax for incomes up to Rs 5-7.5 lakh
>> 15% income-tax for incomes from Rs 7.5-10 lakh
>> 20% income-tax for incomes from Rs 10-12 lakh
>> 25% income-tax for incomes from Rs 12.5-15 lakh
>> 30% income-tax for incomes above Rs 15 lakh
>> 100 exemptions allowed under I-T Act now
>> Around 70 exemptions removed under the new regime
>> Remaining I-T exemptions to be reviewed in the coming days
>> Govt to abolish Dividend Distribution Tax (DDT)
>> Dividends to be taxed in the hands of recipients
>> Revenue foregone due to DDT removal Rs 25,000 crore
>> To allow deduction of dividend received by holding companies from subsidiary
>> Corporate tax cut to 15% for power generation companies
>> Revenue foregone due to DDT removal Rs 25,000 crore
>> Tax payment on Esops from startups deferred by 5 years when they leave co
>> 100% tax exemption for SWFs for infra investment
>> Turnover limit for startups claiming tax deduction raised to Rs 100 crore
>> Tax holiday for qualified startups raised to 10 years