Summary of Direct Tax Proposals In Union Budget 2020

• February 4, 2020
• CA Chandan Agarwal's Office

• In order to simplify the taxation structure, a new scheme “Vivaad se Vishwas Scheme” has been introduced which will reduce or simplify the litigations under which an assessee will not be required to pay heavy penalties and interests in case of any pending dispute with the department. Only pending tax amount have to be paid. Currently, the assessee files further appeals because of heavy penalties and interest amounts and after the implementation of this scheme, the assessees under dispute will no longer be required to pay any penalty and interest which will automatically reduce the litigations.
• There will be 2 slabs of Income tax rates, one which is already existing and the new one has been proposed in the budget. Under the existing slabs, lot of deductions are allowed during the computation of Income Tax but under the new proposed slab (optional), slab rates will be more simplified due to lower tax rates but on the same side, lot of deductions will not be given like 80C etc.

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