Income Tax Current Affairs - 2020

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Finance Bill, 2020 passed in Lok Sabha

On March 23, 2020, Finance Minister Nirmala Sitaraman introduced the Finance Bill, 2020. The bill was introduced and passed in Lok Sabha without any discussion.

Key Features of the Bill

The bill provides the financial proposals of the fiscal year 2020-21. With the bill being passes, the proposals made under the Union Budget 2020-21 has come into effect. The GOI proposed to spend Rs 30,42,230 crores of rupees in the financial year 2020-21. This is 12.7% more than the revised estimate of 2019-20.

NRI

Several amendments have been made to the bill. The passed bill withdrew certain features that affected non-resident Indians. It includes NRIs with income more than 15 lakhs from business owned by them in India will fall under tax net. However, their global income is not to be taxed.

The bill has abolished Dividend Distribution Tax. It is the tax imposed by the GoI on Indian Companies based on the dividend paid by them to their investors.

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Parliament passed Direct Tax Vivad Se Viswas Bill, 2020

On March 14, 2020, Parliament passed the Direct Tax Vivad Se Viswas Bill, 2020. The bill aims to reduce the number of litigation that are associated with direct tax payments. The Direct Tax Vivad Se Viswas concept was introduced by the Finance Minister Nirmala Sitaraman during the Union Budget 2020-21.

Key Features of the bill

Though the bill deals with tax payments, it is in no way connected with the Income-Tax Act, 1961. However, it aims to bring the appeals filed by the Income Tax Department under the act. And for the taxpayers, the bill says that if the tax payment is made after March 31, 2020, the tax payer has to pay 110% of the disputed tax. And if the tax is paid before the date, the tax payer has to pay full amount of the disputed tax and there will be no penalty applied.

Concerns

The bill raised concerns that it treats honest and dishonest people in equal way. Also, it attracted comments for its hindi name in a country which is diversified culturally to great extent. However, the English version of the bill is “No Dispute, But Only Trust”

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