The budget highlights the introduction of a new optional income tax regime that allows taxpayers to forgo 70 exemptions in exchange for lower tax rates. Key allocations include Rs. 2.83 lakh crore for agriculture, Rs. 99,300 crore for education, and Rs. 1.7 lakh crore for transport infrastructure. Bank deposit insurance is increased to Rs. 5 lakh per depositor. The budget also removes the dividend distribution tax paid by companies and instead taxes dividends in the hands of recipients.

1. PRESETATION BY
SOUMYALIN
SANTY
UNION BUDGET 2020

2. BUDGET HIGHLIGHTS
• A new income tax regime has been proposed. A taxpayer can opt for it by
forgoing 70 tax exemptions.
• A taxpayer has an option to choose between existing tax regime and new tax
regime.
• Bank deposit insurance cover increased from Rs. 1 lakh to Rs.5 lakh per
depositor
• Agriculture sector: Rs.2.83 lakh crore for agriculture and allied sectors;
 Farmers income to be doubled by 2022
 Agriculture credit availability set Rs 15 lakh crore for 2020-21.

3. • Health:
 Health sector gets Rs 69000 cr;
 Rs 12300 cr Swach Bharat this year
 Jan Dhan Aushadhi scheme for all hospitals under Ayushman Bharat by 2025
• Education:
Rs 99300 cr for education sector in 2021 ; urban and local bodies to provide
internship to young engineers for a year;
IND SAT exam for students of Asia and Africa to promote study in India programme.

4. • Infrastructure: Rs.1.7 lakh crore for transport infrastructure in 2021; aim to
achieve electrification of 27000 km of railway lines; 100 more airports will be
developed by 2024 to support UDAN
• DDT removed recipient to pay dividend tax
• Five year tax holiday for startups
• Cigarette and tobacco products to cost more

5. • TAXATION OF DIVIDEND FROM DOMESTIC COMPANIES AND MUTUAL FUNDS
• As per the existing provisions of the income-tax, domestic companies that
declare, distribute or pay dividend are required to pay a dividend distribution
tax.Such dividend was exempt in the hands of the recipients up to INR
10,00,000.
It is proposed to remove the dividend distribution tax payable by companies
and tax the dividend from such companies and mutual funds in the hands of the
recipients at ..

6. • ENHANCED TIMELINE TO TAKE LOAN TO BUY HOME UNDER AFFORDABLE
HOUSING SCHEME
• An additional deduction of INR 1,50,000 under section 80EEA was made
available in the finance act 2019 in relation to interest on loan taken for
acquisition of house property for which the value does not exceed INR
45,00,000.Such deduction was available subject to satisfaction of specified
conditions including that the loan is required to be sanctioned between 1 april
2019 to 31 march 2020.

7. ODISHA
• Odisha to get six medical colleges (PPP)
• Union budget has allocated Rs.4373 cr for the railway sector in Odisha which is
less then a decrease Rs. 1560

8. NEW TAX DEAL : ARE YOU RICHER OR POORER
?
INCOME (RS) OLD RATE NEW RATE REMARKS
UPTO 2.5 LAKHS 0 0
2.5 lakhs – 5 lakhs 0 0 If net taxable income
is < Rs.5 lakhs
2.5 lakhs – 5 lakhs 5% 5% If net taxable income
is > Rs.5 lakhs
5 lakhs – 7.5 lakhs 20% 10%
7.5 lakhs – 10 lakhs 20% 15%
10 lakhs – 12.5 lakhs 30% 20%
12.5 lakhs – 15 lakhs 30% 25%
> 15 lakhs 30% 30%
Exemptions and
deductions
Yes No

9. A COMPREHENSIVE PICTURE
IF GROSS INCOME(RS.) – 15,00,000
Particulars Low Deductions Medium
Deductions
High
Deductions
Very High
Deductions
Break Even
A B C D E
GROSS INCOME 15,00,000 15,00,000 15,00,000 15,00,000 15,00,000
HRA Exemption 3,60,000
Standard Deduction 50,000 50,000 50,000 50,000 50,000
Loss from house property 2,00,000
GROSS TOTAL INCOME 14,50,000 14,50,000 12,50,000 10,90,000 14,50,000
Deductions under section
80C
1,50,000 1,50,000 1,50,000 1,50,000
Deduction under section 80D 50,000 50,000
Net Taxable income 14,50,000 13,00,000 11,00,000 8,90,000 12,50,000
Tax @ old slabs 2,57,400 2,10,600 1,48,200 1,14,920 1,95,000
Tax @ new slabs 1,95,000 1,95,000 1,95,000 1,95,000 1,95,000
Gain/Loss under new slabs 62,400 15,600 -48,800 -80,080 0

10. OTHER TAXATION MEASURES
• FOR CORPORATES/ COOPERATIVE SOCIETIES –
Concessional tax rate for cooperative societies proposed (from 30% to
22%)
Concessional tax rate of 15% to new domestic companies extended to
electricity generation companies.
• FOR START-UPS –
Ease in taxation norms for esops
100% deduction increased for startup having turnover up to Rs 100 cr.
And 10 years

11. WINNERS AND LOSERS
FOR TAX PAYERS
WINNER LOSER
• Simplified income tax regime at concessional rates
introduced. But each tax payer will have to do the math to
figure out if he gains or losses
• Employees offered ESOPS will not have to pay tax on
allotment(Exercise).Tax incidence will arise on completion
of five years from allotment of shares, or termination of
employment, or sell of such shares, which ever is earlier.
Capital gains will still be payable on sale.
• A donor can get deduction ranging from 50% to 100% of
donation made to a charitable institution, but only if the
latter has furnished the details of donation received , to
the income tax authorities.
• New scheme of E- appeals and E- penalty to be
introduced on lines of e- assessments for greater
efficiency and transparency.
• Taxpayers’ charter to be introduced to save taxpayers
from harassment. PAN to be allotted instantly via ADHAR.
• Indian citizen not liable to
pay tax in any other country
to be deemed tax resident in
India and pay tax on global
income.

12. FOR INVESTORS
WINNER LOSER
• Deduction of RS.1.5 lakh for interest on
loan to purchase affordable residential
house now extended to loans sanctioned
from 1st April,2020 – 31st
March2021(Against earlier end date of
31st March2020)
• No adjustment to sale consideration on
transfer of immovable property where
variation between stamp duty value and
sale consideration is not more than 10%
of latter (against the earlier 5%)
• Dividends will now be taxed in hands of
recipient taxpayer. Rich shareholders will
pay tax at 30% plus surcharge and cess ,
as opposed to 10%on dividend income
exceeding Rs.10 lakh.
• Employer’s contribution to PF,NPS and
superannuation fund exceeding
RS.7.5L/Yr to be taxable as salary in
employee’s hands.

13. FOR BUSINESSMEN
WINNER LOSER
• No DDT to be paid by companies on
distribution of profits to the shareholders.
• Tax holiday benefit for eligible developers
of affordable housing projects extended 1
year.
• Beneficial tax rate of 5% on interest on
external borrowings/rupee-denominated
bonds extended 3 years.
• New dispute resolution scheme to be
introduced allowing settlement by waiving
interest and penalty upon payment of
only disputed tax till 31st March,2020.
• Simplified GST returns from 1st
April,2020; e – invoicing to be introduced
in phased manner starting Feb2020 on
optional basis.
• ITAT may grant stay of demand only upon
deposit of not less than 20% of the
disputed demand. Further , the period of
stay can in no case exceed 365 days.
• 5% health cess to be imposed on import
of specified medical devices in a bid to
encourage their production locally

14. FOR CONSUMERS
WINNER LOSER
• System to be introduces to provide a cash
reward to those consumers who obtain
invoices from their suppliers . Modalities
to be spelled out later.
• Increase in customs duties on electric
motor vehicles from April 2020. Increase
in duties on import of footwear, furniture,
dairy products , kitchenware, household
products, and certain electronics effective
from 01st February 2020.

15. THANK YOU