<p>The Budget 2020 will be presented on February 1 by Finance Minister Nirmala Sitharaman. This will be the second budget for Prime Minister Narendra Modi-led NDA government after coming back to power for the second consecutive term by gaining landslide victory in the Lok Sabha Elections 2019. Ahead of the Budget presentation, let us take a look at what are the income tax changes that can be expected from Budget 2020: </p>.<p>According to Kuldip Kumar, Partner, and Leader, Personal Taxation, PwC India, "The existing tax slabs are, up to 2.5 lakh (nil tax), Rs 2.5-5 lakh (5 percent), Rs 5-10 lakh (20 percent), and above Rs 10 lakh (30 percent). There is an expectation to rationalise these slabs to, up to Rs 5 lakh (Nil tax), Rs 5-10 lakh (10 percent) and Rs 10-20 lakh (20 percent) and above Rs 20 lakh (30 percent). This will benefit the taxpayers at large and will give more money to spend."</p>.<p>Meanwhile, Nitin Baijal, the Director, of Deloitte India thinks that the overall exemption limit under section 80C should at least be enhanced to Rs 3 lakh, from the current Rs 1.5 lakh. He also added, "Similarly, while increasing the limits under 80C, concurrently the limit of investment under PPF may also be increased. The tax policymakers in sync with PPF authorities, can work at rejigging the limit of Rs 1.5 lakh per individual including minor children, and providing a deduction for the additional investment under section 80C."</p>.<p>"We do foresee some relief for personal income in lower tax slabs, with minimal impact on the exchequer. The biggest relief may come in the form of extending limits on Section 80C benefits," said Amar Ambani, senior president and research head for institutional equities at Yes Securities.</p>.<p>“STT was introduced in 2004 and accordingly long term capital gain on which SST is paid was exempted from tax. In the Union budget of 2018, tax on long term capital gains on listed securities was reintroduced. At the same time, STT was also continued. This had negative effects on sentiments of investors," says Ashok Shah of NA Shah Associates.</p>.<p>Parizad Sirwalla, Partner and Head, Global Mobility Services – Tax, KPMG in India is of the opinion that measures such as increase in basic tax exemption limit of Rs 2.5 lakh as such limit has remained constant since Financial Year 2014-15, realignment of other income slabs basis such revised basic exemption limit, increase in limit of deduction under section 80C comprising of various tax savings investments/ expenditures amongst others will help spur overall demand for goods and services which will provide the much-needed impetus to the economy. </p>
<p>The Budget 2020 will be presented on February 1 by Finance Minister Nirmala Sitharaman. This will be the second budget for Prime Minister Narendra Modi-led NDA government after coming back to power for the second consecutive term by gaining landslide victory in the Lok Sabha Elections 2019. Ahead of the Budget presentation, let us take a look at what are the income tax changes that can be expected from Budget 2020: </p>.<p>According to Kuldip Kumar, Partner, and Leader, Personal Taxation, PwC India, "The existing tax slabs are, up to 2.5 lakh (nil tax), Rs 2.5-5 lakh (5 percent), Rs 5-10 lakh (20 percent), and above Rs 10 lakh (30 percent). There is an expectation to rationalise these slabs to, up to Rs 5 lakh (Nil tax), Rs 5-10 lakh (10 percent) and Rs 10-20 lakh (20 percent) and above Rs 20 lakh (30 percent). This will benefit the taxpayers at large and will give more money to spend."</p>.<p>Meanwhile, Nitin Baijal, the Director, of Deloitte India thinks that the overall exemption limit under section 80C should at least be enhanced to Rs 3 lakh, from the current Rs 1.5 lakh. He also added, "Similarly, while increasing the limits under 80C, concurrently the limit of investment under PPF may also be increased. The tax policymakers in sync with PPF authorities, can work at rejigging the limit of Rs 1.5 lakh per individual including minor children, and providing a deduction for the additional investment under section 80C."</p>.<p>"We do foresee some relief for personal income in lower tax slabs, with minimal impact on the exchequer. The biggest relief may come in the form of extending limits on Section 80C benefits," said Amar Ambani, senior president and research head for institutional equities at Yes Securities.</p>.<p>“STT was introduced in 2004 and accordingly long term capital gain on which SST is paid was exempted from tax. In the Union budget of 2018, tax on long term capital gains on listed securities was reintroduced. At the same time, STT was also continued. This had negative effects on sentiments of investors," says Ashok Shah of NA Shah Associates.</p>.<p>Parizad Sirwalla, Partner and Head, Global Mobility Services – Tax, KPMG in India is of the opinion that measures such as increase in basic tax exemption limit of Rs 2.5 lakh as such limit has remained constant since Financial Year 2014-15, realignment of other income slabs basis such revised basic exemption limit, increase in limit of deduction under section 80C comprising of various tax savings investments/ expenditures amongst others will help spur overall demand for goods and services which will provide the much-needed impetus to the economy. </p>