Union Budget 2020-2021 : Analysis of Income Tax Proposals

• February 6, 2020
• CA Chandan Agarwal's Office

The first Union Budget of the new decade (second one of Prime Minister Shri Narendra Modi led Government, in the Second Innings) presented by the Finance Minister Smt. Nirmala Sitharaman on 1^st February 2020; took most by surprise; with some of the radical Income tax reforms and belying some expectations.

The Radical tax reforms includes proposals in respect of new simple tax regime with lower tax rates in lieu of forgoing deductions; withdrawing levy of Dividend Distribution Tax on companies/Mutual Funds and shifting it to Share-Holders /Unit-Holders; efforts to improve and digitalize systems and processes to levy and collection tax with increased use of data analytics and reduction in human interface.

Also, the Budget does not include so called small print devils and many retrospective amendments.

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