Monday, February 3, 2020

Budget 2020

New Income Tax Slabs | Income tax rate cut: Budget gives option of lower income tax rates, new tax slabs minus 70 exemptions .
   
Here are all the key highlights from Nirmala Sitharaman's Budget speech: Taxation: * New optional tax slabs: New income tax slabs will be available for those who forgo exemptions. * To simplify the tax system and lower tax rates, around 70 of more than 100 income tax deductions and exemptions have been removed.

As per the proposed amendments, a citizen of India would be deemed to be a resident of India in any financial year, if such individual is not liable to tax in any other country.

As per the existing provisions, an Indian Citizen or Person of Indian Origin, who being outside India, comes on a visit to India in any financial year, would be considered as a resident in India, if such individual stays in India for 182 days or more. The amendment proposed by the budget provides for such an individual to be resident in India in either of the two scenarios – (i) the individual’s stay in India during the financial year is 182 days or more; or (ii) the individual’s stay in India is 120 days or more in the current financial year and 365 days or more in the preceding 4 financial years.

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