HomePersonal Finance NewsBudget 2020: New personal tax regime to benefit many, says revenue secretary Ajay Bhushan Pandey

Budget 2020: New personal tax regime to benefit many, says revenue secretary Ajay Bhushan Pandey

In the backdrop of corporate tax reduction, it was found that more than 90 percent of the companies chose to go for the exemption deduction free regime and in the lower tax regime.

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By Shereen Bhan  February 1, 2020, 7:28:31 PM IST (Updated)

Budget 2020: New personal tax regime to benefit many, says revenue secretary Ajay Bhushan Pandey
The new personal tax regime proposed in the Union Budget 2020 will benefit a large number of cross-section of people, said Ajay Bhushan Pandey Secretary of Revenue in an interview to CNBC-TV18's Shereen Bhan.


There will be no exemptions in the new personal tax regime, but the exemptions can be availed in the old regime, he added.

"We have informally done some quick calculations and found that people across section particularly those who have just joined a job, somebody who is a pensioner or a very senior citizen, somebody who is not a salary earner but a small MSME, will benefit," Pandey said.

He further explained that the benefit in the new regime could range between Rs 20,000-25,000, depending upon the individual's tax bracket.

In the backdrop of corporate tax reduction, it was found that more than 90 percent of the companies chose to go for the exemption deduction free regime and in the lower tax regime.

"Similarly, in the personal income tax also there are only very few people who would be taking a very large number of deductions. There were also some people that because of their own financial constraints or financial conditions, they did not have that surplus that they would invest in those products which will give them exemptions, so they were actually at a disadvantage," Pandey said.

Further, speaking about divestment, DIPAM Secretary Tuhin Kanta Pandey said that Bharat Petroleum Corporation Ltd (BPCL), Shipping Corporation of India (SCI) and CONCOR would be divested in the first half of the next fiscal.

"Some of the big ticket disinvestments that government announced basically are strategic in nature and the nature of privatization of very large assets. We hope that although we may not be able to conclude that in this current financial year, they will spill over to the next year and that too in the first half of the next FY," he said.

He further added, "Air India expression of interest (EoI) is as well out and BPCL EoI will be out very soon. So these are the big ticket disinvestments we are working on which will actually fructify, the actual receipts will come in the next FY."

"The 2.1 lakh crore - there are two parts to it as well one is a Rs 90,000 crore which is for the disinvestment of financial sector particularly IDBI and LIC," he added.
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