Budget 2020 may cut Income Tax, introduce new slab rates

Budget 2020 may cut Income Tax, introduce new slab rates The government is thing of restructuring personal income tax rates to encourage the middle class to spend more in its bid to boost consumption. Income Tax Rate cut is one of the primary expectation of common man from Modi Government. The committee set up to review direct taxes has sought a 10% personal income tax rate for those with annual incomes up to Rs 10 lakh; 20% for those with incomes over Rs 10 lakh and up to Rs 20 lakh; 30% for incomes over Rs 20 lakh and up to Rs 2 crore; and 35% for incomes above Rs 2 crore. [caption id="attachment_85747" align="aligncenter" width="609"] Budget 2020 may cut Income Tax, introduce new slab rates[/caption] Some other expectations from Budget 2020 are: 1. Making Rental Income Tax Free to Boost Real Estate Sector. 2. The Budget should encourage investors who want to save for their children’s education. This can be done by providing tax benefits to saving instruments related to Education. At the same time, tuition fee should be removed from Sec 80C and a separate deduction should be offered for education expenses. The deduction limit of Rs 1.5 lakh under Section 80C is too low. Considering the high cost of education these days, the deduction for children’s tuition fees should be in an altogether different basket. 3. Allowing Deduction for home and vehicle insurance in Section 80C 4. Abolish Dividend Distribution Tax : Because of Dividend Distribution Tax we are paying tax on income at three stages, one when it is earned by the company, two the DDT paid at time of Dividend distribution & three 10% tax is applicable on Dividend of More than Rs. 10 Lakh earned by an individual. 5. Extend additional home loan deduction U/S Section 80EEA to everyone. 6. Reducing TDS on Profesionals. 7. The tax on Capital gains beyond Rs 1 lakh has dented investor sentiment. This threshold should be hiked to at least Rs 3 lakh. 8. Raise presumptive tax rate to augment revenues 9. Increase basic exemption for senior citizens Incase you have some suggestions, kindly comment in the comment box given below. Tags : Budget 2020, Income Tax, Income Tax Slab