Budget 2020: Watch out for these tax-related notifications today

By: |
Published: February 1, 2020 10:50:28 AM

Union Budget 2020 India: According to Riaz Thingna, Director, Grant Thornton Advisory, while any major shift is not expected in the direct taxes, relief at the lower end of the personal taxes is expected.

budget 2020, budget 2020 date, budget 2020 date india, budget 2020 expectations, budget 2020 highlights, budget 2020 income tax, budget 2020 live, union budget 2020, union budget, union budget 2020 date, union budget india, union budget 2020-21Budget 2020 India: Another tax analyst expects an extension of income-tax deduction to new export units established in SEZ.

Budget 2020-21: While any changes in the indirect taxes under GST will be announced by the GST Council, industry and stakeholders are keen to see if Finance Minister Nirmala Sitharaman will notify some other tax-related measures in Union Budget 2020 today. An announcement on the new Remission of Duties and Taxes on Export Products (RoDTep) Scheme is expected in this budget, According to Vivek Jalan, Co-Chairman of the Taxation Committee, Bengal Chamber Of Commerce. “As India prepares for increasing the export benefits to boost exports, RoDTep is likely to be a new Scheme under Foreign Trade Policy and is expected to be implemented from 1st April 2020,” Vivek Jalan told Financial Express Online. He also said that under GST, certain trade friendly and litigation reducing measures are expected like payment of interest on the GST payable in cash only.

Watch Video: What is Union Budget of India?

Reviving SEZ

Another tax analyst expects an extension of income-tax deduction to new export units established in SEZ. “Given that export growth has slowed down, the Government should consider extending profit linked deduction under section 10AA of the IT Act beyond 31 March 2020. This will not only revive the SEZ investment ecosystem but will also result in improving current account deficit situation with more foreign exchange reserves,” Nikhil Rohera, Partner, Corporate & International Tax at PwC India, told Financial Express Online.

ALSO READ | Budget 2020 expectations: Top 5 challenges for real estate sector

Rohera further said that the government had earlier announced that it will launch a scheme to set up mega-manufacturing plants in sunrise and advanced technology areas and investment-linked tax deduction under section 35AD of the IT Act shall be provided. Since no such deduction has been provided yet, it is expected that Budget 2020 should include an amendment to this effect.

Lower personal tax

According to Riaz Thingna, Director, Grant Thornton Advisory, while any major shift is not expected in the direct taxes, relief at the lower end of the personal taxes is expected. Meanwhile, on indirect taxes, the government may tweak the GST law to support the new GST return formats, said Ashish Sharma, Principal, Taxation, Dhruva Advisors LLP. “Although there have been GST rate cuts in the past, there is a reflection of the government’s intent to further rationalize the GST rates. On the customs side, there could be an increase on the import duties in electronics, electricals handicrafts, etc to boost local manufacturers hit by influx of cheap Chinese imports,” Ashish Sharma told Financial Express Online.

Do you know What is Finance Bill, Short Term Capital Gains Tax, Fiscal Policy in India, Section 80C of Income Tax Act 1961, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Budget 2020 expectations: A wishlist for Personal Income Tax, corporate tax, Real Estate Sector
2Economic Survey 2020: CEA vs ex-CEA as survey says there is no overstating of growth
3Budget 2020: No window dressing! Time to restore confidence of investors and industry