A second budget in 2020 has been introduced by the finance ministry; Nirmala Sitharaman is the Union Budget of 2020-21 on February 1.
Nirmala Sitharaman explained that the dynamics of the economy have a drastic change and also bought stability in the conditions of macroeconomy. Banks are ensured to clear the loans generated previously and also used for recapitalization. IBC got the providence of exit from the companies. To grow the economic situation, there were several steps are also kept in account and also enacting them.
There is an additional deduction of 1.50lakh on the interest paid on taking a loan for purchasing affordable housing segment as per the declaration of in the last budget and also to enhance the concept of ‘Housing for All’. This deduction is only for those loans which have been sanctioned before 31st March 2020. Nirmala Stharaman asked to extend the sanction date of loan to provide the benefits of additional deduction to the people. A tax holiday has been introduced by the government for the developers to earn profits from the affordable housing projects as on 31st March 2020. 3 BHK Apartments in South Kolkata are also enhancing the buyers for the perfect investment which also comes under the affordable housing segment.
More than 100lakh crore has been sanctioned for the improvement of the infrastructure of the country for the next five years. It includes more than 6500 projects where airways, roadways, bus terminals, waterways, healthcare for all, safe drinking water, affordable housing, world-class educational institutes, etc.
Concession To Real Estate Transactions
If it is drawn that the consideration value is less than the circle rate by more than 5%, then the difference will be counted for both buyer and seller as in their income while there is an income from tax from capital gains, business profits and from also other sources. The Finance Minister has increased the limit by 5% to 10% to decrease the hardship by providing relief to the sector for making any transactions.
Co-operatives Concession Rates
To access the credit of the economy, occupying inputs, product marketing are also certain factors which are mostly enhanced rather controlled by co-operative societies. To balance the equality between corporates and co-operative society, the ministry has approved the tax rates at 22% with the addition of more 10% surcharge for the societies and 4% cess with no deduction.
Under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI Act ) has approved to reduce 100crore from the asset of 500crore or the size loan will be decreased to 50lakh from 1crore as per the eligibility of debt recovery and this limit has been set for NBFCs.
Personal Income Tax and Simplification of Taxation
A new tax regime has been introduced where the tax rates will be decreased specifically for individual taxpayers who waive themselves from deductions and exemptions to simplify the Income Tax Law.
The reduced rate of 10% is for the income between 5lakh to 7.5lakh which 20% before as per the new tax regime. Same as the taxpayer have to pay 15% for the income of 7.5lakh to 10lakh which was 20% before. Continuing, the individual taxpayer has to pay the reduced rate of 20% for the income range of 10lakh to 12.5lakh instead of 30%. The taxpayers, whose income is 12.5lakh to 15lakh, need to pay the reduced rate of 25% instead of 30%. And last, whose income is more than 15lakh, they need to pay the reduced rate of 30%.
There is no need to pay any tax under an old or new tax regime whose income is upto 5lakhs. It depends on the taxpayer claiming for exemption and deduction to avail of the substantial tax benefits under the new tax regime.
By LNN (Liyaans News Network)