Budget 2020 income tax expectations: Garg, who played a pivotal role in designing three Union Budgets, claimed if the central government brings in an income tax structure without cesses and surcharges, it will be welcomed by taxpayers.
Budget 2020 date, session, income tax expectations: Union Finance Minister Nirmala Sitharaman will present the Narendra Modi government’s India Budget 2020 in Parliament. People of India have an array of expectations, especially regarding Income Tax, from both FM Sitharaman as well as the central government. Suggestions have been pouring in from various sections of the society as the Finance Ministry sought proposals for the annual financial exercise. While the Union Budget 2020-making process is still on, there are expectations that FM Sitharaman will deliver a balanced budget speech in Parliament.
Budget 2020 income tax expectations
With just two weeks to go for the Union Budget 2020, former Finance Secretary S C Garg has made a proposal pertaining to income tax slabs. Garg has pitched for tax reforms and suggested that the Central government must come up with a simple four-rate personal income tax structure sans any cess or surcharge. The central government’s decision to go for a corporate tax rate cut in September has made Corporate Tax structure reasonable and competitive during the current fiscal, Garg wrote in his personal blog. While no more action is expected in this regard, there are several major tax reforms, which are necessary for the taxation structure of Personal Income Taxes, Garg said.
Garg said that currently there are eight Income Tax slabs with the highest effective tax rate exceeding 40 per cent. Garg proposed a “simple and fairer” Income Tax structure for the Modi government to consider during Union Budget 2020. As part of the proposed tax structure, there should no tax for an annual income of less than Rs 5 lakh. Garg has proposed a five per cent tax on annual income from Rs 5-10 lakh, 15 per cent on income from Rs 10-25 lakh, 25 per cent on income from Rs 25-50 lakh and 35 per cent on income over Rs 50 lakh per annum.
Garg, who played a pivotal role in designing three Union Budgets, claimed if the central government brings in an income tax structure without cesses and surcharges, it will be welcomed by taxpayers. Apart from this, Garg also wants the Central government to abolish the Dividend Distribution Tax (DDT) in the upcoming India Budget 2020.
Budget 2020 date India
Finance Minister Nirmala Sitharaman will present her second Union Budget on February 1 as announced by the Modi government. The Budget 2020 speech will begin at 11 AM.
Budget session 2020
Budget session 2020 will begin on January 31. The India Budget 2020 session will be held in two phases. The first phase of the Union Budget 2020 session will be between January 31 and February 11. The second phase will be from March 2 to April 3.
Budget 2019 Income Tax highlights, summary, slabs
Garg wrote that there are two principal sources of direct tax revenues- Corporation Income Tax (CIT) and Personal Income Tax (PIT). Both of these together were budgeted to contribute Rs. 13.35 lakh crore in Budget 2019-20. Of the total amount, Corporate Income Tax was Rs 7.66 lakh crore and Personal Income Tax was Rs 5.69 lakh crore.
Income (per annum) Income Tax rate
Up to Rs 2,50,000 Nil
Rs 2,50,001 to Rs 5,00,000 5 per cent of total income exceeding Rs 2,50,000
Rs 5,00,001 to Rs 10,00,000 Rs 12,500 + 20 per cent of total income exceeding Rs 5,00,000
Above Rs 10,00,000 Rs 1,12,500 + 30 per cent of total income exceeding Rs 10,00,000