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What Budget 2020 means for individual taxpayers, experts explain

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The most important change In the Budget 2020-21 which everybody is talking about is the change in the personal tax regime. Taxpayers have been provided options in personal income tax--either they can choose the new old one or move to the new tax regime.

The most important change In the Budget 2020-21 which everybody is talking about is the change in the personal tax regime. Taxpayers have been provided options in personal income tax--either they can choose the new old one or move to the new tax regime.
Should one continue under the old regime and pay higher taxes, but claim higher deductions or go under the new regime and claim no deductions and no exemptions and pay lower rate of tax that is where most of the people are confused.
Homi Mistry of Deloitte India told CNBC-TV18 the people who are going to earn more may now end up paying more tax.
"For example, the government has said that in case of employers who are contributing in excess of Rs 750,000 for items which have earlier exempt for example in provident fund or in superannuation fund or even now in NPS they would be liable to pay tax on amounts in excess of Rs 750,000 so that is also been the focus of the government,” he said.
Ashish Vohra of Reliance Nippon Life Insurance, said stock market did expect something more, at least the initial reaction appears to say that the reactions might improve as the fine print gets understood better.
“However, it is quite clear that from the taxation point of view there are significant changes and it calls for a significant amount of work that needs to be done almost at an individual level to understand what the new things mean and what is the strategy for the next year is going to be,” he added.
When asked about Budget’s impact on finance, Sunil Subramaniam of Sundaram Mutual Fund, said: “The Budget is very positive, actually from the perspective that I think it has opened the doors for a lot of foreign money to come in whether it is in infrastructure, whether it is in dividend paying companies."
"The second is I think the government is focusing on spending on infrastructure and leaving the consumption region at the hands of the investor on whether he wants to save or to consume and that is a good way to play.”
Samir Kanabar of EY said, “I want to put it in two different buckets one is that given that the economy needed a push, the whole emphasis seems to be and the Budget numbers seems to suggest that almost 18 percent is going towards capital expenditure."
"So, government had a fine balance that whether one should give more money into the pockets of the people or we push more capital expenditure which is able to generate returns and repay the capital or the debt and the government has done that as a fine balance -- that should we leave more money or make capital expenditure.”
“However, if you look at tax per se and that is where my bread and butter comes from, there are a lot of nuances and all this five questions lead us to all those nuances that how NRIs are being treated, how TDS have been brought in so there are lot of nuances which are going to play its own role,” added Kanabar.

Market Movers

CompanyPriceChange%Gain
Tata Steel1,158.35 43.90 3.94
Coal India162.65 6.15 3.93
JSW Steel731.20 25.40 3.60
Dr Reddys Labs5,453.00 160.95 3.04
Hindalco393.15 7.75 2.01
CompanyPriceChange%Gain
Dr Reddys Labs5,451.20 160.55 3.03
Power Grid Corp246.30 4.75 1.97
TCS3,271.70 55.65 1.73
Infosys1,446.75 22.20 1.56
HCL Tech983.45 14.95 1.54
CompanyPriceChange%Gain
Tata Steel1,158.35 43.90
Coal India162.65 6.15
JSW Steel731.20 25.40
Dr Reddys Labs5,453.00 160.95
Hindalco393.15 7.75
CompanyPriceChange%Gain
Dr Reddys Labs5,451.20 160.55
Power Grid Corp246.30 4.75
TCS3,271.70 55.65
Infosys1,446.75 22.20
HCL Tech983.45 14.95

Currency

CompanyPriceChng%Chng
Dollar-Rupee73.06750.01500.02
Euro-Rupee88.7480-0.1710-0.19
Pound-Rupee103.4890-0.0730-0.07
Rupee-100 Yen0.6673-0.0005-0.08