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Economy

Budget 2020: Key expectations on corporate, personal taxes

Updated : 2020-01-31 07:16:03

Finance minister Nirmala Sitharaman is expected to revise personal income tax slabs upward in the Budget 2020, in a major relief to taxpayers. A government-appointed panel on the Direct Tax Code has also recommended a revision to the income tax slabs. The government is also likely to offer relief in corporate taxes, including abolishing dividend distribution tax, among others. Here are the key expectations on taxes from the Union Budget:

The government may revise the 5 percent income tax slab to Rs 2.5 lakh to Rs 7 lakh from currently to Rs 2.5 lakh to Rs 5 lakh. The government may propose a 10 percent tax for the income bracket of Rs 7 lakh to Rs 10 lakh. For Rs 10 lakh to Rs 20 lakh bracket, the finance ministry may propose a 20 percent rate.
The government may revise the 5 percent income tax slab to Rs 2.5 lakh to Rs 7 lakh from currently to Rs 2.5 lakh to Rs 5 lakh. The government may propose a 10 percent tax for the income bracket of Rs 7 lakh to Rs 10 lakh. For Rs 10 lakh to Rs 20 lakh bracket, the finance ministry may propose a 20 percent rate.
Here is what the current income tax slabs look like
Here is what the current income tax slabs look like
Raising deduction under Section 80C and increase the limit of deduction for housing loan interest are among the key expectations on the personal income tax.
Raising deduction under Section 80C and increase the limit of deduction for housing loan interest are among the key expectations on the personal income tax.
In corporate taxes, the government may abolish dividend distribution tax and extend the profit-linked deduction for exports from SEZs beyond March 31.
In corporate taxes, the government may abolish dividend distribution tax and extend the profit-linked deduction for exports from SEZs beyond March 31.
Analysts peg the shortfall in tax collections in the financial year 2019-2020 to be between Rs 1.7 lakh crore and Rs 2.95 lakh crore.
Analysts peg the shortfall in tax collections in the financial year 2019-2020 to be between Rs 1.7 lakh crore and Rs 2.95 lakh crore.
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