Budget 2020 Income Tax Implications

01 Feb 2020

Open a DBS Bank Account Now Lower tax slab if you forego exemptionsIn a significant boost for taxpayers, Finance Minister Nirmala Sitharaman proposed a new optional income tax structure for those who are willing to forego existing exemptions and deductions. These changes will become effective from the financial year 2020-21 after the Parliament passes these proposals.Budget 2020 Highlights: The New IT Slabs under Budget 2020Under the new proposals, income between

0-5 Lakh would not be taxed

Rs. 5 Lakh to Rs. 7.5 Lakhs will be taxed at 10%, down from the current 20%,

Rs. 7.5 Lakh and Rs. 10 Lakhs will be taxed at 15%, down from the current 20%,

Rs. 10 Lakh and Rs. 12.5 Lakhs will be taxed at 20% down from the current 30%,

Rs. 12.5 Lakh and Rs. 15 Lakhs will be taxed at 25% down from the current 30%,

Above Rs. 15 Lakhs would continue to be taxed at 30%

Other Union Budget 2020 benefits for Income Tax payers

If you are working for a start up, you have reason to cheer, because the tax on your Employee Stock Options will be deferred by five years

The additional Rs. 1.5 Lakh tax deduction on interest paid for affordable housing loans has been extended to March 2021. This would give some relief to those who are planning to buy a new home

What went well:Attempt to simplify the tax regime, reduced tax burden on those earning below Rs. 15 lakh per annum.What didn't:Taxpayers could be left scrambling to decide which tax structure suits them best.DBS Bank offers Mutual Funds that are instant, paperless, signatureless – even transaction fee-less! What’s more? You get to choose from 250+ Mutual Funds across 15 top-performing asset management companies. So why wait? Login to digibank (app or internet banking) and start investing in a flash with instant Mutual Funds on DBS Bank.Read up more on Mutual Funds hereMutual Fund investments are subject to market risks, read all scheme related documents carefully before investing. Open a DBS Bank Account Now