Influence of Budget 2020 on banking and financial affairs

Affordable housing purchase was made available by Finance Minister Nirmala Sitharaman for the people in order to maintain the reduction in the taxes up to March 31, 2020. If the loan has been authorized before March 31, 2020, then a deduction of around Rs 1.5 lakh could be claimed against the interest that has been paid for the sanctioned loan amount for affordable housing.

Budget 2020 had even put in place the taxpayers charter that introduced the rights of the taxpayer and mortgaged more lucidity. In order to reduce the interplay of the taxpayers with income tax officials, a faceless scheme was laid for a more lucid and accountable assessment process. In order to lessen the lawsuits pending in various committees, Budget 2020 also introduced a new scheme which was known as Vivad se Vishwas. This scheme permitted taxpayers the choice of settlement and would get a complete renunciation of the interest and penalty. 

To be licensed as an Indian citizen the time of stay in India had been reduced from 120 days to 182 days. Also, it had been put forward that an Indian Citizen who is not accountable to pay tax anywhere would be considered to be resident in India and accordingly tax would be liable.

Budget 2020 also put an end to the Dividend Distribution Tax. Earlier DDT had been 29.12 percent for best funds at the time of dispensing dividends, 11.648 percent for equity funds, and 34.944 percent when companies used to pay out dividends o their own shares. At the same time dividends are obligated to tax withdrawal at source if they outstrip 5000, a year. Karan Batra, Founder, and CEO of Chartered Club commented ” The abolishment of DDT helped people pay taxes on dividends which were compatible to their income”. 

Tax deferral was offered to the employees by the new establishments on the Employee Stock Options. The tax would be postponed for five years or until the employee leaves the company or sells his shares.

 

 

 

 

 

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