Rajya Sabha Passes the Boilers Bill, 2024  ||  NCLAT: Authority Can’t Pass Adverse Remarks against RP Performing Duties as Per CoC’s Instruction  ||  Tel. HC: Teacher Eligibility Test Guidelines Framed to Ensure that Competent Persons are Recruited  ||  Ker. HC: Loss in Derivative Business Would be a Business Loss for Purposes of Section 72 of IT Act  ||  Rajasthan High Court: Suo-Motu Cognizance Taken Over Lack of Public Washrooms  ||  Gau. HC: Thorough Enquiry to be Conducted before Declaring a Monument as Ancient  ||  SC: Buttondar Knife to be Prohibited Only if Used for Manufacture, Sale or Possession for Sale or Tes  ||  Del. HC: Collection of Funds to Commit Offence in Future Not Money Laundering Under PMLA  ||  Rajya Sabha Passes Oilfields (Regulation and Development) Amendment Bill, 2024  ||  Lok Sabha passes Banking Laws (Amendment) Bill, 2024    

Lok Sabha Passes Finance Bill, 2020 without Discussion amid Coronavirus Pandemic - (27 Mar 2020)

Direct Taxation

Lok Sabha has passed the Finance Bill, 2020 with amendments as political parties agreed to clear the Central Government’s financial and tax proposals for the financial year 2021 without a discussion. For the year 2020-2021, the Union Government has assumed a nominal GDP growth rate of 10% as compared to the year 2019-20 wherein the nominal growth estimate was 12%. The Government has proposed to spend Rs 30,42,230 crore for the Financial Year in 2020-21, which is 12.7% higher than the revised estimate of 2019-20.

The Act has also proposed various changes in the rate of tax applicable for Individuals, senior citizens and for companies.

The tax slab for Individuals is as follows:

SLAB Rate of Tax
Upto Rs. 2,50,000 Nil
Rs.2,50,000 to Rs.5,00,000 5%
RS. 5,00,001 to RS. 7,50,000 10%
Rs.7,50,001 to Rs.10,00,000 15%
Rs.10,00,001 to Rs.12,50,000 20%
Rs.12,50,001 to Rs. 15,00,000 25%
Above Rs.15,00,000 30%


One of the major steps taken in the Finance Act, 2020 are some non-tax changes to the Prohibition of Benami Properties Transactions Act, 1988. The Act constitutes an adjudicating authority on issues related to Benami properties. The qualifications for the chairperson and members of the authority are that they must have been: (i) a member of the Indian Revenue Service as Commissioner of Income-tax or equivalent, or (ii) a member of the Indian Legal Service as Joint Secretary or equivalent. The Bill states that an individual qualified for the position of District Judge may also be the chairperson or a member of the authority.

The Finance Act, 2020 also proposes changes in Commodities Transaction Tax wherein the Bill creates three tax rates:

(i) 0.01% payable by the seller on the sale of commodity derivatives based on its price or price index,

(ii) (ii) 0.0001% payable by the buyer on the sale of an option in goods resulting in the delivery of the goods,

(iii) 0.125% payable by the buyer on the sale of an option in goods resulting in a cash payment.

Presently, in the current scenario, the commodities transaction tax on commodity derivatives is 0.01%.

Currently, companies have to pay a tax of 15% on dividends distributed by it to shareholders. This has been removed and the dividend income will now be taxable in the hands of the recipient. Further, in the Indian Stamp Act, 1899 is now proposed that Stamp duty will not be charged in the case of transactions in stock exchanges and depositories established in international financial centres set up under the Special Economic Zones Act, 2005. In short, number of changes has been proposed in the by the Finance Act for the Year 2020-21 which aims for strengthening the financial stability of the country.

Tags : FINANCE BILL   AMENDMENT   PASSING OF  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved